Carmen Reinhart and Kenneth Rogoff explain the paradox of capital flows from poor to rich countries by ?

the law of increasing returns that implies that the marginal productivity of capital is higher in LDCs

the brain drains from LDCs to DCs

the price role of political and credit-market risk in many LDCs

the fat that the DC capital market is perfectly competitive

Carmen Reinhart and Kenneth Rogoff explain the paradox of capital flo

1.	Carmen Reinhart and Kenneth Rogoff explain the paradox of capital flows from poor to rich countries by ?
A.	the brain drains from LDCs to DCs
B.	the price role of political and credit-market risk in many LDCs
C.	the law of increasing returns that implies that the marginal productivity of capital is higher in LDCs
D.	the fat that the DC capital market is perfectly competitive
Answer» C. the law of increasing returns that implies that the marginal productivity of capital is higher in LDCs

Discussion

No Comment Found

Related MCQs

Which of the following statement is NOT true about OECD aid ?
I = S + F The equation above states that a country can increase its new capital formation (or investment) through is ?
Japan’s programs ? I- are understaffed politically muddled and administratively complex II- are biased toward Asia III- go primarily to less developed countries in Africa IV- focus on loans and the grant element of aid is low
Hollis Chenery and Alan Strout identity three development stages in which growth proceeds at the highest rate permitted by the most limiting factors These factors are ? I- the skill limit II- the savings gap III- the fiscal gap IV- the foreign exchange gap
For Harvard’s Dani Rodrik Globalization involves ?
U.S total official development assistance to developing countries is ?
The U.S real food aid, as well as food reserves dropped from the 1960s to the 1980s partly because ?
Carmen Reinhart and Kenneth Rogoff explain the paradox of capital flows from poor to rich countries by ?
Some economists and third-world policy makers criticize MNCs arguing that they have a negative effect on the developing country because they ? I- increasing the LDC’s technological dependence on foreign sources resulting in less technological innovation by local workers II- Hamper local entrepreneurship and investment in infant industries III- increase unemployment rates from unsuitable technology IV- Restrict subsidiary exports when they undercut the market of the parent company
MNCs can help the developing country to ? I- Finance a savings gap or balance of payments deficit II- Obtain foreign technology by adapting existing processes III- Generate appropriate technology by adapting existing processes IV- Employ domestic labor, especially in skilled jobs

Carmen Reinhart and Kenneth Rogoff explain the paradox of capital flows from poor to rich countries by ?

Discussion

No Comment Found

Related MCQs

Reply to Comment