The Capital Account Keeps Track of the Amount of

question 3

Multiple Choice

The capital account keeps track of the amount of

• A)foreign-owned machinery in a country
• B)domestically owned machinery in foreign countries
• C)exports and imports of goods only
• D)exports and imports of goods and services
• E)assets in one country owned by citizens of another

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Definitions:

Long-Run Equilibrium

The condition in which all inputs and outputs in an economy or a market are fully adjusted and there are no external pressures for change.

Silk-Screened T-Shirts

T-shirts printed through a process in which ink is pressed through a screen, allowing for the creation of images and texts on fabric.

Selling Price

Selling Price is the amount of money that a seller charges for a product or service.

Economic Profits

The discrepancy between what a business earns in total revenue versus the sum of its explicit and implicit expenditures.