If US Net Exports Are Negative, Then Net Capital Outflow Is

question 39

Multiple Choice

If U.S. net exports are negative, then net capital outflow is

• A)positive, so foreign assets bought by Americans are greater than American assets bought by foreigners.
• B)positive, so American assets bought by foreigners are greater than foreign assets bought by Americans.
• C)negative, so foreign assets bought by Americans are greater than American assets bought by foreigners.
• D)negative, so American assets bought by foreigners are greater than foreign assets bought by Americans.

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Definitions:

Private Market

A sector of the economy where transactions are made between private individuals or corporations without significant government intervention.

Common Resources

Refers to goods that are non-excludable and rival in consumption, such as fish stocks in the ocean or public parks, where usage by one person reduces availability for others.

Marginal Social Cost

The cost to society of producing one additional unit of a good or service.

Private Supply

The provision of goods or services by businesses or individuals rather than by the government.