As productive capital goods are established in developing nations
A) developed nations will become less prosperous.
B) these countries will experience higher rates of economic growth.
C) portfolio investment will be replaced by loans from international aid agencies.
D) they will be less likely to engage in international trade.
B
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In the Hotelling model of spatial competition, profits arise from:
a. monopoly power. b. rents based on locational advantage. c. the ability to price discriminate. d. increasing returns to scale.
The opportunity cost of investing in a new lithotripter (a machine that pulverizes kidney stones with sound waves) is
a. defined by the dollar cost of the equipment. b. the same for every health care provider. c. measured by the difference between the expected revenues from selling the services of the lithotripter and the invoice cost of the machine. d. defined by the next best use of the money invested in the equipment. e. impossible to calculate.