If Australia Has a Current Account Deficit, Then

question 117

Multiple Choice

If Australia has a current account deficit, then:

• A) we must sell more exports to pay for it.
• B) we will have a capital account surplus of the same amount.
• C) we must buy more assets overseas.
• D) the capital account will also be in deficit.

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Definitions:

Fixed Costs

Costs that do not change with the level of production or sales, such as rent or salaries.

Average Total Costs

The total expenses incurred in the process of producing or offering a good or service, divided by the quantity of goods or services produced or offered.

Average Variable Costs

The sum of all variable production costs divided by the total number of units produced.

Output

The amount of something produced by a person, machine, or industry.