In 2015, the United States Had

question 54

Multiple Choice

In 2015, the United States had

• A) a surplus in the current account.
• B) a balance in the current account.
• C) a deficit in the current account.
• D) a positive balance of net financial flows.
• E) From 2015 data, it is too difficult to determine whether a surplus or a deficit existed in the current account.

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Definitions:

Returns to Scale

The rate at which output increases in response to proportional increases in all inputs.

Production Function

An equation or graph that shows the output generated from different combinations of inputs, usually focusing on labor and capital.

Marginal Product

The increase in output that results from an additional unit of input.

Returns to Scale

Refers to the rate at which output increases as inputs are proportionately increased, categorizing into increasing, constant, or decreasing returns.