The Table Contains Balance of Payments Data for the Hypothetical

question 123

Multiple Choice

The table contains balance of payments data for the hypothetical nation of Econland. All figures are in billions of dollars. Econland's balance on the capital and financial accounts is a

• A)surplus of $98 billion.
• B)surplus of $88 billion.
• C)surplus of $99 billion.
• D)deficit of $106 billion.

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Definitions:

Opportunity Costs

The expense incurred by not choosing the second-best option available during decision-making.

Initial Cash Flow

The first influx or outflow of cash associated with an investment or project, marking the beginning of its cash flow timeline.

Sunk Costs

Expenses that have already been incurred and cannot be recovered, which should not influence future business decisions.

Replacement Projects

Investments made to replace worn-out or obsolete assets with new assets.