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Author Question: Economists classify energy and water as part of which factor of production? A) land B) labor C) ... (Read 59 times)

Arii_bell

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Economists classify energy and water as part of which factor of production?
 
  A) land
  B) labor
  C) capital
  D) entrepreneurship
  E) land if undeveloped and capital if developed

Question 2

The government of Techland experienced a current account surplus of 0.4 billion during a certain year. What should be the balance in the financial account of Techland? Explain your answer.
 
  What will be an ideal response?



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zogaridan

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Answer to Question 1

A

Answer to Question 2

A country which runs a current account surplus must either buy assets from foreigners or lend to foreigners. Hence, current account surpluses must match financial account outflows. In other words, when a country makes net sales of goods and services from foreigners, the country must make net asset purchases from foreigners. Therefore, there is likely to be a deficit of 0.4 billion in Techland's financial account.




Arii_bell

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Reply 2 on: Jun 30, 2018
Excellent


amandanbreshears

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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