Since 1999,the Capital Account Has Recorded

question 35

Multiple Choice

Since 1999,the capital account has recorded

• A)transactions that affect net capital flows in the economy.
• B)relatively minor transactions,such as migrants' transfers,and sales and purchases of nonproduced,nonfinancial assets.
• C)transactions that affect the balance of trade or the balance of services.
• D)statistical discrepancy between the current account and the financial account.

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Definitions:

Externalities

The cost or benefit that affects a party who did not choose to incur that cost or benefit, affecting third parties outside the transaction.

Market for Product X

The demand and supply conditions, participants, and interactions specific to a particular product, designated as "Product X."

Overallocation of Resources

A situation where too many resources are devoted to a particular area of the economy, potentially leading to inefficiencies and waste.

Pigovian Taxes

Taxes levied on any market activity that generates negative externalities, intended to correct an undesirable or inefficient market outcome.