Which of the following is a key assumption in factor price insensitivity in response to a fall in FDI?
a. Technology is changing in the capital-intensive sector.
b. Technology is changing in the laborintensive sector.
c. Prices are changing for the capitalintensive good.
d. None of these is a key assumption.
Answer: d. None of these is a key assumption.
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Reserve requirements are the
A) minimum percentages of deposits that banks must hold as reserves. B) minimum amount of an owner's financial resources that must be placed in a depository institution. C) rules covering the types of deposits that banks may offer. D) rules covering the types of assets that banks may purchase.
For a normal good, an expected increase in income would: a. shift demand to the right
b. shift demand to the left. c. increase the slope of the demand curve. d. decrease the slope of the demand curve.