Which of the Following Appears in the Capital Account Part

question 95

Multiple Choice

Which of the following appears in the capital account part of the balance of payments?

• A) A gift to a Canadian from his English aunt
• B) A purchase by the Honda corporation of a Canadian Treasury bill
• C) A purchase by the Bank of England of a Canadian Treasury bill
• D) Income earned by the Honda corporation on its automobile plant in Ontario

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Definitions:

Opportunity Cost

The value of the next best alternative foregone as a result of making a decision.

Specialize

The process of focusing effort and resources on a narrow area of activity or field of study to gain efficiency or expertise.

Production Possibilities

A graphical representation showing the maximum quantity of goods and services that can be produced using limited resources to the fullest extent.

Opportunity Cost

The act of losing potential gains available through other choices upon selecting one option.