Which of the Following Is NOT Part of the Capital

question 63

Multiple Choice

Which of the following is NOT part of the capital account?

• A) U.S. private assets
• B) U.S. official reserve assets
• C) Foreign official assets
• D) Unilateral transfers

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Definitions:

Social Costs

The total cost to society, including both private costs incurred by firms and external costs to individuals not involved in a transaction.

Socially Optimal

A state in which resources are allocated in the most efficient way from a societal perspective, maximising collective welfare or benefit.

Pigovian Tax

A tax or charge levied on the production of a product that generates negative externalities. If set correctly, the tax will precisely offset the overallocation (overproduction) generated by the negative externality.

Clean Up

The process of removing contaminants, waste, or undesirable items from an area, thus restoring it to its original or acceptable condition.