The Balance of Payments Identity Is Given by BCA

question 80

Multiple Choice

The balance of payments identity is given by BCA + BKA + BRA = 0.Rearrange the identity to solve for the statistical discrepancy.

• A)The statistical discrepancy = (BCA + BKA)− BRA
• B)The statistical discrepancy = BCA − BKA + BRA
• C)The statistical discrepancy = BCA − BKA − BRA
• D)The statistical discrepancy = BCA + BKA + BRA

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Definitions:

Duopoly

A market structure characterized by two producers/sellers in competition with each other.

Constant Costs

Costs that remain unchanged regardless of the level of output or activity within a certain range.

Corncob Pipes

Pipes made from the dried cob of a corn plant, often used for smoking tobacco.

Cournot Reaction Function

A mathematical representation in economics that shows how one firm reacts to the quantity choice of another firm in a duopoly market setting.