A Nation's External Wealth Can Be Affected by Which of the Following

question 53

Multiple Choice

A nation's external wealth can be affected by which of the following? I. the difference between international spending and income from the rest of the world
II) changes in currency values
III) capital gains and losses on equities and real estate

• A) I
• B) II and III
• C) I and III
• D) I, II, and III

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Definitions:

Specialized Resources

Inputs in the production process that have specific uses and are not easily adaptable to other types of production.

Comparative Advantage

The capacity of a person, business, or nation to create a product or offer a service with a smaller opportunity cost compared to its rivals.

Opportunity Cost

The cost of missing out on the next best alternative when making a decision.

Total Output

The total quantity of goods or services produced by a firm or an economy in a specific period.