When the U

question 38

Multiple Choice

When the U.S.has a current account surplus,we know that it is also

• A)running a balanced trade account.
• B)lending to the rest of the world.
• C)borrowing from the rest of the world.
• D)suffering from negative investment income.
• E) none of the above

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Definitions:

MRP Capital

The marginal revenue product of capital, which is the additional revenue generated by one more unit of capital.

MRP Labor

Marginal Revenue Product of Labor: the additional revenue generated by employing one more unit of labor, assuming all other factors of production remain constant.

Price Labor

Relates to the cost of labor expressed in terms of money paid for work done, influencing the pricing of goods and services in an economy.

Price Capital

Generally refers to the financial assets invested in a business entity to cover the initial and operational costs, influencing its market pricing strategies.