Which of the Following Is an Example of a Capital

question 25

Multiple Choice

Which of the following is an example of a capital inflow for the US?

• A)A domestic increase of assets held by foreign investors
• B)A domestic decrease of assets held by foreign investors
• C)An increase in US foreign asset holdings
• D)Importing of goods and services

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Definitions:

Profit-maximizing

The process or goal of increasing a firm's profits to the highest possible level by adjusting output and pricing strategies.

Marginal Revenue Product

Additional income derived from the employment of an extra production factor.

Diminishing Marginal Returns

A principle stating that if one factor of production is increased while others remain constant, the overall returns will eventually decrease after a certain point.

Marginal Revenue Product

The additional income generated from using one more unit of a resource or factor of production.