An Open Economy

question 70

Multiple Choice

An open economy

• A) can save only by building up its capital stock.
• B) can save only by acquiring foreign wealth.
• C) cannot save either by building up its capital stock or by acquiring foreign wealth.
• D) can save either by building up its capital stock or by acquiring foreign wealth.
• E) can save by avoiding excessive imports.

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Definitions:

Wage

The fixed regular payment, typically calculated on an hourly, daily, or piecework basis, made by an employer to an employee.

Marginal Product

The additional output that is produced by adding one more unit of a specific input, keeping all other inputs constant.

Profit Maximize

The process by which a company determines the price and output level that returns the greatest profit, taking into account costs and demand.

Wage Rate

Wage Rate represents the standard amount of compensation a worker receives for performing a specific task or job, typically expressed per hour or per unit of work completed.