When economists refer to capital ﬂight, they are speaking of an
A) outﬂow of ﬁnancial capital from a certain country.
B) outﬂow of real capital from a certain country.
C) outﬂow of ﬁnancial and real capital from a certain country.
D) outﬂow of human capital from a certain country.

Question

Quizplus · Accepted Answer

Capital flight refers to the movement of financial capital (such as money and investments) from one country to another. It is often a response to economic or political instability in the country of origin, as investors seek a safer or more profitable environment elsewhere. Real capital refers to physical assets like buildings and machinery, which are not typically moved across borders like financial capital. Human capital refers to the skills and knowledge of individuals, and is also not typically considered in discussions of capital flight.

When Economists Refer to Capital ﬂIght, They Are Speaking of an