According to the Theory of International Trade and Balance of Payments

question 48

True/False

According to the theory of international trade and balance of payments, a surplus or deficit in a country's basic balance should not be self-correcting.

---

Definitions:

Average Costs

Total costs (fixed and variable) divided by the total quantity of output produced, representing the cost per unit of production on average.

Variable Costs

Costs that change in proportion to the good or service that a business produces.

Shut Down

The cessation of operations, often temporarily, by a business or organization.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent or salaries.