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An example of government investment in physical capital to increase business productivity is

An example of government investment in physical capital to increase business productivity is

An example of government investment in physical capital to increase business productivity is:

A. roadways.

B. bridges.

C. sewer systems.

D. All of these are examples of ways governments can increase productivity.

122.Governments invest in infrastructure:

A. to increase the productivity of businesses.

B. to spur economic growth.

C. to increase the growth rate of GDP per capita.

D. All of these are reasons why the government provides infrastructure.

123.Many governments are currently investing in:

A. more roadways.

B. communications infrastructure.

C. more ports, given the growing importance of international business.

D. All of these are true.

124.Some people attribute the rapid growth of the East Asian economies in the 1980s and 1990s to:

A. the success of their "industrial policies."

B. the governments picking industries to support with investments and favorable tax and trade policies.

C. the governments planning for growth by investing in certain industries.

D. All of these are true.

125.The idea that governments can plan growth by setting industrial policies to encourage growth of certain industries:

A. is a proven method for economic growth.

B. is controversial.

C. has worked for the majority of countries that have tried it.

D. None of these is true.

126.Industrial policies are:

A. favorable tax policies to encourage private domestic investment in certain industries.

B. favorable trade policies to encourage private investment in certain industries.

C. government investments in certain industries to encourage growth in those industries.

D. All of these are true.

127.Foreign direct investment is:

A. investment that occurs when a firm runs part of its operation abroad or invests in another company abroad.

B. investment that occurs when a firm runs its operation domestically, and sells its product abroad.

C. when foreign companies buy physical capital from the United States.

D. when foreign companies buy and operate physical capital within the United States.

128.An example of U.S. foreign direct investment would be:

A. a factory in Canada owned by a U.S. citizen.

B. a factory in Japan owned by a Canadian citizen.

C. a factory in New Mexico owned by a Japanese citizen.

D. All of these are examples of foreign direct investment.

129.FDI stands for:

A. foreign direct investment.

B. foreign domestic income.

C. foreign direct income.

D. foreign domestic investment.

130.Factories owned by U.S. firms on the Mexican side of the U.S.-Mexico border are:

A. an important source of foreign direct investment in Mexico.

B. not an example of foreign direct investment in Mexico.

C. troubling for the Mexican government.

D. harmful to Mexico's efforts to increase their economic growth.

abhinav behal 15-Feb-2020

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