In the short run (specificfactors) model FDI in the a country's manufacturing sector will cause its production possibility frontier:

a. to shift outward for both sectors.
b. to shift inward.
c. to shift outward for manufacturing only.
d. to stay the same.

Answer: c. to shift outward for manufacturing only.

Economics

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On the graph above, suppose the labor market is in equilibrium at point 2, then the demand curve shifts down to the position shown on the graph

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Economics