The Balance on Current Account Includes the Net Flow of Good

question 6

Multiple Choice

The balance on current account includes the net flow of good, services, income and

• A) portfolio investments
• B) changes in reserve assets
• C) direct investment
• D) unilateral transfers

Evaluate the relationship between productivity, human capital, technological knowledge, and living standards.

Understand the significance of human and physical capital in economic development.

Understand the classification and impact of different types of capital in the economy.

Recognize the significance of patents and proprietary knowledge to innovation and economic growth.

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Definitions:

Capital Structure

Refers to the mix of different types of debt and equity that a company uses to finance its overall operations and growth.

Productive Capacity

The maximum output or production level that can be achieved with the available inputs and resources without stressing the production system.

Direct Method

A method for presenting cash flows related to operating activities, highlighting the main categories of gross cash inflows and outflows.

Operating Activities

Activities that are directly related to the operation of the business, such as sales, services, and administrative tasks, distinguishing them from investing and financing activities.