An Example of an Item Included in the Capital Account

question 172

Multiple Choice

An example of an item included in the capital account is

• A) the profits made by a U.S. shoe company operating a plant in Vietnam.
• B) Dell computers exported to Brazil.
• C) a Pepsi-Cola bottling plant in Greece.
• D) a stipend paid to a Bulgarian student studying at Baylor University in the United States.

Understand the characteristics of perfectly competitive markets and the notion of firms as price takers.

Analyze the conditions under which firms in competitive markets would continue to produce in the short run despite economic losses.

Distinguish between the elasticity of supply curves in the short run and long run in competitive markets.

Recognize the conditions leading to economic profits or losses for firms in competitive markets in the long run.

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Definitions:

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An educational approach focused on learning through direct experience and reflection on doing.

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A setting or situation that provides security and protection, minimizing risks of harm or danger to individuals.

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A characteristic of being willing to listen, adapt, and react positively to feedback, suggestions, and changes in the environment.