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

question 126

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)buys more goods from foreign countries than it exports
• 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
• E)imports less machinery than it exports

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Definitions:

Total Revenue

The total income a firm receives from selling its goods or services, calculated as the price per unit times the number of units sold.

Total Cost

Total Cost is the sum of all expenses incurred in the production of goods or services, including both fixed and variable costs.

Marginal Revenue Curve

A graph illustrating the additional revenue a firm gains when it sells one additional unit of a product.

Perfect Competition

Perfect competition describes a market structure where competition is at its greatest possible level, with numerous firms, no barriers to entry, and price taking behavior.