The Purchase of Canadian Assets by Foreigners Is, for Canada

question 56

Multiple Choice

The purchase of Canadian assets by foreigners is, for Canada, considered a capital

• A)outflow and is recorded as a credit on the current account.
• B)outflow and is recorded as a debit on the capital account.
• C)inflow and is recorded as a credit on the current account.
• D)inflow and is recorded as a credit on the capital account.
• E)outflow and is recorded as a debit on the current account.

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Definitions:

Marginal Cost

The expense involved in making an extra unit of a good or service.

Additional Unit

Refers to one more unit of something, often used in the context of production, sales, or inventory.

Variable Cost

Expenses that change in proportion to the activity of a business such as production levels or sales volume.

Wages

Compensation received by employees for their labor, typically expressed as an hourly, daily, or piecework rate, or as an annual salary.