In the balance of payments, any transaction that leads to a receipt by a resident of a country or its government is a(n)
A. deficit item.
B. asset.
C. minus item.
D. surplus item.
Answer: D
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If a household has a husband, wife, and two kids, has a standard deduction of $12,600, has itemized deductions of $6,650, and personal exemptions of $16,000 (4*$4,000), then the first ________ of income is federal income tax free.
A. $20,650 B. $28,600 C. $13,250 D. $34,250
Borrowing in foreign currency to buy imports or invest in foreign currency,
a. decreases demand for the domestic currency, appreciating the domestic currency b. increases demand for the domestic currency, depreciating the domestic currency c. increases demand for the domestic currency, appreciating the domestic currency d. does not affect the exchange rates
A monopolist might keep the prices below the profit maximizing level:
a. to attract new firms to the market. b. to increase producer surplus. c. due to government intervention and scrutiny. d. due to economies of scale.
A foreign firm that is selling below cost and is accused of dumping often:
a. lowers its price further to increase the tariff imposed. b. moves its production to the importing nation to avoid the tariff completely. c. raises its export prices to reap the rents and avoid the antidumping tariff completely. d. calls for a ruling by the WTO.