A Friend Claims That Canada Is a Net International Debtor

question 61

Multiple Choice

A friend claims that Canada is a net international debtor.The best way of testing this claim is to

• A)see whether Canadian foreign liabilities exceeded Canadian foreign income.
• B)see whether Canadian receipts from foreign assets exceeded Canadian payments to foreign owners of Canadian assets.
• C)see whether Canadian official reserve assets were positive or negative.
• D)see whether Canada ran a balance of payments surplus or deficit last year.

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Definitions:

Economies of Scale

Enterprises see cost efficiencies due to their operating scale, with the cost for every unit of output generally declining as the scale enlarges.

Economies of Scale

Describes the cost benefits that companies achieve through their operation size, where the cost for each unit produced typically falls as the scale of operation grows.

Constant Marginal Cost

A situation in which the cost of producing one additional unit of a product remains the same, regardless of the volume produced.