Multiple Choice
Two reasons why capital may not flow to poor countries are that the poorer countries may:
A) have economies unlike those described by a Cobb-Douglas production function and not be subject to diminishing returns to capital.
B) have already accumulated high levels of capital relative to labor and may already have access to advanced technologies.
C) legally prevent the inflow of foreign capital and provide strong legal protection of private property.
D) have inferior production capabilities and not enforce property rights.
Correct Answer:

Verified
Correct Answer:
Verified
Q79: In a large open economy, the exchange
Q80: The value of net exports is also
Q81: If the nominal exchange rate falls 10
Q82: In a large open economy, if an
Q83: If a U.S. corporation purchases a product
Q85: The adoption of an investment tax credit
Q86: Use the following to answer questions :<br>Exhibit:
Q87: Assume that some large foreign countries begin
Q88: According to purchasing-power parity, if the dollar
Q89: In a small open economy, if exports