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ECS3707 ASSESSMENT 5 SEMESTER 2 2023 1 ATTEMPT
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ECS3707 ASSESSMENT 5 SEMESTER 2 2023 1 ATTEMPT
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10/11/23, 7:09 PM Assessment 5ECS3707-23-S2 Welcome Message Assessment 5
QUIZ
Question 1
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Which of the following can be a disadvantage to the host country of MNC investment?
a. Transfer pricing - multinationals will always aim to reduce their tax liability to a minimum.
b. Crowding out - if overseas firms borrow in the domestic economy this may reduce access to funds and increase
interest rates.
c. Low skilled employment – the jobs created in the local environment may be low-skilled with the multinational
employing expatriate workers for the more senior and skilled roles.
d. Influence and political pressure -multinational investment can be very important to a country and this will often give
them a disproportionate influence over government and other organisations in the host country.
e. all of the above
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Question 2
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Human capital development requires investment
a. capital-saving technological progress.
b. by the World Health Organisation to improve education and health in developing countries.
c. in better education and training to improve skills.
d. capital- augmenting technological progress.
e. none of the above
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Question 3
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A country’s human capital increases
a. if its workers become better educated or healthier.
b. only if its workers become better educated.
c. only if its workers become healthier.
d. none of the above is correct.
e. all of the above
Clear my choice
https://mymodules.dtls.unisa.ac.za/mod/quiz/attempt.php?attempt=14114286&cmid=600746 1/7
, 10/11/23, 7:09 PM Assessment 5
Question 4
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The Washington Consensus s advocates the following policy stances:
a. Governments are more likely to make things better than worse.
b. Outward- looking development policies.
c. Deregulation, the elimination of laws, rules and regulations that govern particular industries which limit competition.
d. Imposing of restrictions or barriers on the free exchange of goods between nations.
e. A reduction of public expenditure priorities toward fields offering both high economic reforms and the potential to
improve income distribution.
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Question 5
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Investment in physical and human capital is typically encouraged by
a. lower taxes on interest income.
b. lower taxes on investment returns.
c. lower taxes on returns to education.
d. all of the above
e. none of the above
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Question 6
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When the Harris-Todaro model is in equilibrium the expected urban wages will be
a. greater than the rural wage rate.
b. less than the rural wage rate
c. equal to the rural wage rate.
d. equal to the social cost of migration.
e. none of the above
Clear my choice
https://mymodules.dtls.unisa.ac.za/mod/quiz/attempt.php?attempt=14114286&cmid=600746 2/7
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