Which of the Following Is Correct

question 113

Multiple Choice

Which of the following is correct?

• A)Current account surplus + capital account surplus = 1
• B)Current account surplus − capital account surplus = 0
• C)Current account surplus + capital account surplus = 0
• D)Current account surplus − capital account surplus = 1

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Definitions:

Economies Of Scale

Cost savings that accrue to firms from upscaling their production operations, where there's a typical decrease in the cost per unit with larger production volumes.

Average Cost

The sum of all production expenses divided by the quantity of items made, showing the expense for each unit of product.

Purely Competitive Equilibrium

A market state characterized by a perfect match between supply and demand, resulting in an optimal distribution of resources without any single buyer or seller influencing the price.

Monopoly Equilibrium

The price and output level determined in a market where a single seller controls the entire supply of a good or service.