Author Question: Economists classify energy and water as part of which factor of production? A) land B) labor C) ... (Read 61 times)

Arii_bell · **on:** Jun 30, 2018

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 · **Reply #1 on:** Jun 30, 2018

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.