Suppose That Because of Legal and Financial Reforms in the Country

question 77

Multiple Choice

Suppose that because of legal and financial reforms in the country of Belats, foreigners find business opportunities there more attractive. We would expect the more attractive opportunities would cause Belats'

• A)net exports and net capital outflows to increase.
• B)net exports to increase and its net capital outflows to decrease.
• C)net exports and net capital outflow to decrease.
• D)net exports to decrease and its net capital outflow to increase.

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Definitions:

Economic Profits

The excess amount after subtracting total expenses from total revenues, considering both explicit and implicit costs.

Demand Curves

A graph representing the relationship between the quantity of a good consumers are willing and able to purchase and its price.

Industry

A sector of the economy that produces goods, services, or related products, categorized by their business activities.