Net Exports Plus Net Capital Inflows Equal

question 46

Multiple Choice

Net exports plus net capital inflows equal:

• A)net capital outflows.
• B)the international trade gap.
• C)zero.
• D)the trade balance.

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Definitions:

Nation's Production Possibilities Frontier

The production possibilities frontier represents the maximum combination of goods and services that can be produced by a nation given its resources and technology, illustrating the trade-offs in production choices.

Real Wage

The wage measured in dollars of constant purchasing power; the wage measured in terms of the quantity of goods and services it buys.

Opportunity Cost

When one option is chosen, it's the sacrifice of possible benefits from other available choices.

Working Home

The act of performing one’s job duties from one's place of residence rather than in a traditional office environment. Often referred to as "working from home" or "remote work."