The Use of Common Property Resources

question 45

Multiple Choice

The use of common property resources:

• A) reduces positive externalities in many cases.
• B) reduces negative externalities in many cases.
• C) leads to positive externalities in many cases.
• D) leads to negative externalities in many cases.

---

Definitions:

Net Capital Outflow

The net flow of funds used for investments in foreign assets by a country minus the flow of investment funds into the country from abroad within a specified timeframe.

Foreign Assets

Investments or ownerships in enterprises, securities, or properties located outside the investor's domestic country.

Real Exchange Rate

The rate at which two currencies can be exchanged, adjusted for their countries' respective inflation rates, to purchase an equivalent quantity of goods and services.

Foreign Assets

Investments including securities and properties owned by a country or individual in foreign countries.