When People Choose to Invest at Home It Is Called

question 69

Multiple Choice

When people choose to invest at home it is called ________, and when they invest abroad it is called _______.

• A) investment; foreign savings
• B) investment; net capital outflow
• C) savings; net capital outflow
• D) savings; net direct investment

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Definitions:

Indifference Curves

Graphical representations showing combinations of two goods that give a consumer equal levels of satisfaction, indicating preferences.

Pareto Optimal

A condition of resource allocation in which it is impossible to make any one individual better off without making someone else worse off, signifying an efficient distribution of resources.

Competitive Equilibrium Price

The market price where the quantity of goods supplied is equal to the quantity of goods demanded, effectively clearing the market.

Utility Function

A mathematical representation of how different quantities of goods or services are ranked according to their desirability for a consumer.