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CAPITAL ACCOUNT DEFICIT: An imbalance in a nation's balance of payments capital account in which payments made by the country for purchasing foreign assets exceed payments received by the country for selling domestic assets. In other words, investment by the domestic economy in foreign assets is less than foreign investment in domestic assets. This is generally not a desireable situation for a domestic economy. However, in the wacky world of international economics, a capital account deficit is often balanced by a current account surplus, which is generally considered a desireable situation. If, however, the current account does not balance out the capital account, then a capital account deficit contributes to a balance of payments deficit.

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Lesson 14: Production | Unit 3: Product Curves Page: 15 of 25

Topic: Production Stages <=PAGE BACK | PAGE NEXT=>

  • The pattern of production exhibited by the total, average, and marginal product curves gives rise to three distinct production stages:

    Stage I:

    • The total product curve has an increasing positive slope.
    • Stage I is characterized by increasing marginal returns.

    Stage II:

    • The total product curve has a decreasing positive slope.
    • Stage II is characterized by decreasing marginal returns.

    Stage III:

    • The total product curve has a negative slope.
    • Stage III is also characterized by decreasing marginal returns.

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TRADE BARRIERS

Policies enacted by the government sector of a domestic economy to discourage imports from the foreign sector. The three most common trade barriers are tariffs, import quotas, and non-tariff barriers. Trade barriers are designed to discourage imports which not only creates or increases a country's balance of trade surplus and thus increase net exports, but also to protect the domestic economy.

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Today, you are likely to spend a great deal of time visiting every yard sale in a 30-mile radius seeking to buy either a turbo-powered vacuum cleaner or a battery-powered, rechargeable vacuum cleaner. Be on the lookout for spoiled cheese hiding under your bed hatching conspiracies against humanity.
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The average length of a "business lunch" is about 36 minutes.
"It is not the straining for great things that is most effective; it is the doing of the little things, the common duties, a little better and better."

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