Which of the following would decrease the balance on the current ...

[kamilo84]

Which of the following would decrease the balance on the current account?
 
  A) a decrease in imports
  B) a decrease in foreign direct investment
  C) a decrease in the amount of aid money the government sends abroad
  D) None of the above will decrease the balance on the current account.

Question 2

Using an example, explain the difference between a labor-intensive technology and a capital-intensive technology.
 
  What will be an ideal response?

[ricroger]

Answer to Question 1

D

Answer to Question 2

The examples will vary, but students should describe a production process which involves using a large amount of labor with only a few tools or machines and a production process that uses a large number of machines with a small amount of labor.