A Measure of the Flow of Goods and Services Out

question 62

Multiple Choice

A measure of the flow of goods and services out of a country into other countries or other items that cause payments to flow into the country is

• A)the national savings account balance.
• B)the balance on current account.
• C)the capital account balance.
• D)the capital and financial account balance.

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Definitions:

Entrepreneur's Forgone Interest

The potential interest income sacrificed by an entrepreneur when choosing to invest personal funds into their own business rather than in an interest-bearing account.

Long-Run Average Cost

The per-unit cost of production in the long-term, where all input factors are variable, indicating economies or diseconomies of scale.

Upward-Sloping

Describes a line on a graph that demonstrates an increase in value as it moves to the right, often used to represent increases in costs or prices.