In International Financial Transactions, What Are the Only Two Things

question 189

Multiple Choice

In international financial transactions, what are the only two things that individuals and firms can exchange?

• A)currency and real assets
• B)services and manufactured goods
• C)assets and currently produced goods and services
• D)currency and currently produced goods and services

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Definitions:

Maximize Profits

The process of adjusting the production level, pricing, or other variables to achieve the highest possible financial gain.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price level in a specified period.

Markets

Venues or systems where buyers and sellers engage in the exchange of goods, services, and information.

Constant Marginal Cost

A situation where the cost of producing an additional unit of output does not change with the level of production.