The Capital Account Keeps Track of the Amount of

question 3

Multiple Choice

The capital account keeps track of the amount of

• A)foreign-owned machinery in a country
• B)domestically owned machinery in foreign countries
• C)exports and imports of goods only
• D)exports and imports of goods and services
• E)assets in one country owned by citizens of another

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Definitions:

Demand Curve

A graphical representation showing the relationship between the price of a good and the amount of it that consumers are willing to purchase at different prices.

Competitive Market

A market structure characterized by a large number of buyers and sellers, where no single entity has significant power to influence the market price.

Quantity Demanded

The specific amount of a good or service that consumers are willing and able to purchase at a given price.

Average Revenue

The amount of income generated per unit of sale or, broadly, the total revenue divided by the number of units sold.