Consider the Following Annual Transactions in Canada's Capital Account

question 146

Multiple Choice

Consider the following annual transactions in Canada's capital account.If Canadian purchases of foreign real estate are $100 million,Canadian purchases of foreign-country bonds are $50 million,foreign purchases of Canadian real estate are $75 million,and foreign purchases of Canadian bonds are $35 million,then the capital account balance is equal to

• A)+ $90 million.
• B)+ $40 million.
• C)- $10 million.
• D)- $40 million.
• E)- $90 million.

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Definitions:

Production Possibilities Frontier

A curve depicting the maximum attainable combinations of two products that may be produced with available resources and current technology.

Efficient

Achieving maximum productivity with minimum wasted effort or expense; in economics, an allocation of resources in which it is impossible to make any one individual better off without making someone else worse off.

Inefficient

Refers to a situation where resources are not used in the most effective way, leading to waste or suboptimal outcomes.

Efficient Production

The process of producing goods or services in a way that minimizes waste and maximizes the use of resources.