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Export-oriented,labor-intensive,"footloose" industries should:


A) never be offered tax holidays.
B) at times be offered tax holidays because they can be more readily influenced by such incentives, as their options are wider than other industries.
C) at times be offered tax holidays because they are more likely to provide positive spillover.
D) both B and C

E) A) and D)
F) A) and C)

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IDs and Paired-Concept Questions These terms can be used individually as short-answer identification questions, or they can be used in pairs. In the latter case, ask students to explain (1) the meaning and significance of each of the two terms and (2) the relationship between them. -Investment,growth

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Investment and growth are two interrelat...

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In an economy with a 9 percent interest rate,the present value of $1,000 that you will receive three years from now is:


A) $772.
B) $1,295.
C) $917.
D) $1,090.

E) None of the above
F) A) and D)

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When welfare weights are introduced or shadow prices are further adjusted to reflect social goals,the process is known as:


A) Fabian socialism.
B) social project appraisal.
C) consumption coordination.
D) chain-weighted social-welfare benefit.

E) A) and B)
F) A) and C)

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IDs and Paired-Concept Questions These terms can be used individually as short-answer identification questions, or they can be used in pairs. In the latter case, ask students to explain (1) the meaning and significance of each of the two terms and (2) the relationship between them. -Positive spillover,negative spillover

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Answered by ExamLex AI

Positive Spillover: A positive spillover is an economic term that refers to the beneficial effects experienced by a third party or the general public due to an economic transaction or activity between two other parties. These effects are not reflected in the cost of the transaction and are considered external benefits. For example, when a company invests in the education and training of its employees, not only does the company benefit from a more skilled workforce, but the employees' increased knowledge and skills can also positively impact the broader economy and society. This could manifest in various ways, such as through improved productivity, innovation, and even the creation of new industries. Negative Spillover: A negative spillover, on the other hand, is the adverse effect that an economic transaction or activity has on a third party who is not directly involved in the transaction. These are also known as external costs or negative externalities. An example of a negative spillover is pollution: a factory may produce goods at a certain cost, but the environmental damage caused by its emissions affects the health and property of people in the surrounding area, which is not accounted for in the price of the goods produced. Relationship between Positive and Negative Spillover: The relationship between positive and negative spillovers lies in their nature as externalities, which are effects of economic activities that are not captured in market transactions. Both types of spillovers occur outside of the direct economic exchange and have an impact on third parties. The key difference is that positive spillovers are beneficial and add value to society, while negative spillovers impose costs. Understanding both types of spillovers is crucial for policymakers and businesses, as they often need to find ways to encourage positive spillovers (e.g., through subsidies or tax incentives for activities that generate public benefits) and mitigate negative spillovers (e.g., through regulation or taxes on activities that impose costs on society). Addressing these externalities is essential for achieving a more efficient and equitable allocation of resources in the economy.

The majority of direct foreign investment in developing countries comes:


A) equally from the private and public sectors.
B) predominantly from the public sector.
C) predominantly from the private sector.
D) from multinational corporations.

E) All of the above
F) A) and B)

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IDs and Paired-Concept Questions These terms can be used individually as short-answer identification questions, or they can be used in pairs. In the latter case, ask students to explain (1) the meaning and significance of each of the two terms and (2) the relationship between them. -Economic openness,investment

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Economic Openness:

Meaning and Signific...

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IDs and Paired-Concept Questions These terms can be used individually as short-answer identification questions, or they can be used in pairs. In the latter case, ask students to explain (1) the meaning and significance of each of the two terms and (2) the relationship between them. -Economic project appraisal,shadow prices

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Answered by ExamLex AI

Economic Project Appraisal:
Economic pro...

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IDs and Paired-Concept Questions These terms can be used individually as short-answer identification questions, or they can be used in pairs. In the latter case, ask students to explain (1) the meaning and significance of each of the two terms and (2) the relationship between them. -Cost-benefit analysis,net cash flow

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Answered by ExamLex AI

Cost-benefit analysis is a systematic ap...

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The net present value of a project is the:


A) sum of the project's cash flow from each year.
B) project's total cash flow divided by the current interest rate.
C) sum of the present value of the project's cash flow from each year.
D) project's total cash flow, less its start-up costs.

E) B) and D)
F) B) and C)

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C

Today,FDI is aimed primarily at all of the following broad categories EXCEPT:


A) natural resource-based activities.
B) alternative and "green energy" production.
C) manufacturing and services aimed at the domestic market in the host country.
D) labor-intensive manufacturing aimed for export on world markets.

E) B) and D)
F) B) and C)

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The opportunity cost of cotton:


A) is considered a negative opportunity cost in the analysis of public projects.
B) is considered a positive opportunity cost in the analysis of public projects.
C) can be considered a negative or a positive opportunity cost in the analysis of public projects, depending on whether the cotton could have been used as an export or an import.
D) holds the same considerations for both the public and private sectors.

E) A) and C)
F) B) and C)

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IDs and Paired-Concept Questions These terms can be used individually as short-answer identification questions, or they can be used in pairs. In the latter case, ask students to explain (1) the meaning and significance of each of the two terms and (2) the relationship between them. -Dependent population,working population

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Answered by ExamLex AI

Dependent Population:
The dependent popu...

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Welfare weights should:


A) be used with caution so that they do not become arbitrary.
B) never be used because they are unreliable.
C) be used for every project because they are as reliable as the discount rate.
D) only be used for small projects.

E) B) and C)
F) C) and D)

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When a private firm undertakes investment analysis,it conducts:


A) risk aversion strategy.
B) commercial project appraisal.
C) a random walk.
D) asymmetric information analysis.

E) A) and D)
F) A) and C)

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The theory that,under certain circumstances,a change in taxes will have absolutely no effect on total domestic saving,is known as the:


A) Ricardian equivalence.
B) Mill's minimum.
C) Marshall's conundrum.
D) Keynesian nullification.

E) All of the above
F) A) and C)

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IDs and Paired-Concept Questions These terms can be used individually as short-answer identification questions, or they can be used in pairs. In the latter case, ask students to explain (1) the meaning and significance of each of the two terms and (2) the relationship between them. -Public investment,externality

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Answered by ExamLex AI

Public Investment:
Public investment ref...

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IDs and Paired-Concept Questions These terms can be used individually as short-answer identification questions, or they can be used in pairs. In the latter case, ask students to explain (1) the meaning and significance of each of the two terms and (2) the relationship between them. -FDI,growth

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Answered by ExamLex AI

FDI (Foreign Direct Investment) and Grow...

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Multinational corporations:


A) avoid spillovers whenever possible.
B) often encourage horizontal spillover.
C) often encourage vertical spillover.
D) encourage both horizontal and vertical spillover.

E) C) and D)
F) All of the above

Correct Answer

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C

IDs and Paired-Concept Questions These terms can be used individually as short-answer identification questions, or they can be used in pairs. In the latter case, ask students to explain (1) the meaning and significance of each of the two terms and (2) the relationship between them. -Income tax incentives,labor-intensive industries

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Answered by ExamLex AI

Income Tax Incentives:

1. Meaning and S...

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