Foreign Direct Investment in Ireland's Economy
29 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the result of FDI in Ireland's Pharmaceuticals industry?

  • Employment contracts
  • The industry shuts down
  • No change in employment
  • Employment expands (correct)

    • How does the FDI influence the nominal wage in Ireland?

  • The change in nominal wage is ambiguous
  • The nominal wage increases (correct)
  • The nominal wage remains the same
  • The nominal wage decreases

    • What happens to the marginal product of Labor after immigration from Poland?

  • The marginal product of Labor decreases (correct)
  • The marginal product of Capital increases
  • The marginal product of Labor increases
  • The marginal product of Labor remains the same

    • What is the result of FDI in Ireland's Beer industry?

    <p>Employment contracts</p> Signup and view all the answers

    What is the relationship between Labor and R&D Labs in the production of Pharmaceuticals?

    <p>Labor and R&amp;D Labs are complements</p> Signup and view all the answers

    What is the result of immigration from Poland on the real wage in Ireland?

    <p>The change in real wage is ambiguous</p> Signup and view all the answers

    What happens to the marginal product of Labor and Capital when a certain phenomenon occurs?

    <p>The marginal product of Labor falls, and the marginal product of Capital rises</p> Signup and view all the answers

    What is called when countries specialize in different varieties of the same type of product and trade them?

    <p>Intra-industry trade</p> Signup and view all the answers

    What opportunity does international trade allow a monopolistically competitive firm in the long run?

    <p>Produce more output and reduce its average costs</p> Signup and view all the answers

    What are the monopoly profits of the firm if it only sells in the domestic market?

    <p>$250</p> Signup and view all the answers

    Should the firm enter the foreign market?

    <p>Yes, because it can increase its monopoly profits</p> Signup and view all the answers

    What is the extra monopoly profits that the firm will earn if it enters the foreign market?

    <p>$125</p> Signup and view all the answers

    What is the definition of dumping in a foreign market?

    <p>Selling to the foreign market below its domestic price</p> Signup and view all the answers

    What is the effect of the tariff on the producer surplus in the Home country?

    <p>It increases by $64.</p> Signup and view all the answers

    What is the amount of government revenue generated due to the tariff?

    <p>$48</p> Signup and view all the answers

    What is the deadweight loss due to the tariff?

    <p>$12</p> Signup and view all the answers

    How many stages of production are involved in the production of TVs?

    <p>3</p> Signup and view all the answers

    What is the only raw material required for the production of TVs?

    <p>Copper</p> Signup and view all the answers

    What would be the consequence of the transportation costs being high in the UK?

    <p>The company would start sourcing copper from the UK</p> Signup and view all the answers

    What is the primary effect of the import quota on the US textile market?

    <p>Increase in domestic textile production</p> Signup and view all the answers

    What does the graph illustrates after the import quota is imposed?

    <p>An increase in the quota rents</p> Signup and view all the answers

    What is the relationship between the freetrade amount of imports and the import quota q?

    <p>q is less than the freetrade amount of imports</p> Signup and view all the answers

    What would happen to the textile imports into the US after the import quota is imposed?

    <p>The textile imports would decrease</p> Signup and view all the answers

    What is the purpose of the import quota in the context of the problem?

    <p>To limit the amount of textile imports</p> Signup and view all the answers

    What is the revenue that the government gets from auctioning off the right to import textiles into the U.S.?

    <p>Area d</p> Signup and view all the answers

    What is the net change in welfare as a result of the import quota if the foreign producers are able to sell to the U.S at the prevailing U.S. domestic price?

    <p>Area a - Area b - Area c</p> Signup and view all the answers

    How does the net change in welfare as a result of the import quota compare between the two scenarios?

    <p>The net change in welfare is lower when the foreign producers are able to sell at the prevailing U.S. domestic price</p> Signup and view all the answers

    What is the area on the graph that represents the revenue generated by the government from the import quota?

    <p>Area d</p> Signup and view all the answers

    What is the effect of the import quota on the domestic price of textiles in the U.S.?

    <p>The domestic price increases</p> Signup and view all the answers

    More Like This

    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser