Economists classify energy and water as part of which factor of ...

[Arii_bell]

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?

[zogaridan]

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]

Excellent

[Dominic]

Gracias!