Economics 9708 · AS & A Level · Monopolistic competition

Monopolistic competition — practice question

A multinational company (MNC) relocates its production capacity to a developing country. What is likely to be the short-term effect of this in that developing country?

  • Aemployment increases no; investment increases no; short-run balance of payments current account improves yes
  • Bemployment increases no; investment increases yes; short-run balance of payments current account no
  • Cemployment increases yes; investment increases no; short-run balance of payments current account improves yes
  • Demployment increases yes; investment increases yes; short-run balance of payments current account no

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI