The traditional view of the production process is that capital is subject to A: Constant returns. B: Increasing returns. C: Diminishing returns. D: Diminishing returns for low levels of capital, and increasing returns for high levels of capital.

International investment causes international capital flows. Whether it is an international direct investment or international indirect investment, it is essentially the cross-border flow of international capital.

The capital structure that maximizes the value of a firm also: A: minimizes financial distress costs. B: minimizes the cost of capital. C: maximizesthe present value of the tax shield on debt. D: maximizes the value of the debt.

A competitive firm hires labor until the marginal product of labor equals the A: real wage. B: rental price of capital. C: price of output. D: capital/labor ratio.

( ), also known as capital flight, is a kind of short-term capital flow. A: Trade capital flows B: Financial capital flows C: value-preserving capital flows D: Speculative capital flows