Describe Alternative Forms of Capital Inflow to Finance External Deficits

question 49

Essay

Describe alternative forms of capital inflow to finance external deficits and explain why these methods were used in different times?

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Definitions:

Increasing Opportunity Costs

A principle stating that as the production of a good increases, the opportunity cost of producing an additional unit of this good also increases.

Bowed-Out Shape

Describes a concave production possibilities frontier that reflects increasing opportunity costs as production of one good is increased.

Attainable And Unattainable

Describes whether a certain state or outcome can be achieved with the available resources (attainable) or not (unattainable), often used in the context of production and economics.

Prices Of Commodities

The current market values assigned to raw or primary products.