Suppose That Purchases of Irish Assets by Foreigners Exceed Irish

question 5

Multiple Choice

Suppose that purchases of Irish assets by foreigners exceed Irish purchases of foreign assets. Ireland has

• A)positive net capital outflow and a trade surplus.
• B)positive net capital outflow and a trade deficit.
• C)negative net capital outflow and a trade surplus.
• D)negative net capital outflow and a trade deficit.

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Definitions:

Inputs

Resources used in the production of goods and services, such as labor, materials, and capital.

Output

The total amount of goods or services produced by a company, system, or economic process.

Marginal Product

The additional output that is produced by using one more unit of a particular input, ceteris paribus.

Fertilizer

A substance used to enhance the growth of plants and increase yield by supplying essential nutrients.