In the Balance of Payments Accounts, a Net Importer of Capital

question 8

Multiple Choice

In the balance of payments accounts, a net importer of capital is a nation that

• A) sells more goods in foreign countries than it imports.
• B) must be running a trade surplus.
• C) sells more assets to individuals in other countries than the assets it buys from them.
• D) buys more assets from individuals in other countries than the assets it sells to them.

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Definitions:

Marginal Cost

The cost of producing one additional unit of a good or service.

Marginal Cost

The expense associated with creating an extra unit of a product or service.

Output

The quantity of goods or services produced in a given time period by a firm, industry, or country.

Price

The amount of money required to purchase a good, service, or asset, determined by supply and demand dynamics.