The Balance of Payments Measures the Inflows and Outflows of Money

question 238

True/False

The balance of payments measures the inflows and outflows of money from tourism, foreign aid, military expenditures, and foreign investments as well as flows resulting from exports and imports.

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Definitions:

Isoquant

A curve that represents all the combinations of inputs that produce the same level of output in the production process.

Returns to Scale

The rate at which output changes if the scale of all inputs is changed by the same proportion.

Output Level

The amount of product or service that is produced by a company or an economy at a given time.

Isoquants

Curves representing combinations of inputs which yield the same level of output in production theory, illustrating technical substitution and factor combinations.