The host country has more reasons to restrict foreign direct investment than does the home country.

The incorrect presumption that because two events tend to occur together, one must cause the other is the:

A) confusion of economists. B) blunder of science. C) fallacy of false cause. D) error of inclusion.

Figure 6-1

illustrates the four possibilities of the distribution of costs and benefits among voters for a government project. For which type would the government most likely undertake many projects that would be considered inefficient or counterproductive (in other words, do too many of them relative to economic efficiency)?
a.
type A
b.
type B
c.
type C
d.
type D