Suppose a family from Peru eats in a restaurant in Salt Lake City, Utah. How will this transaction be recorded in U.S. international transactions?
A. It is recorded in the current account as a positive (plus) item.
B. It is recorded in the current account as a negative (minus) item.
C. It is recorded in the capital account as a positive item.
D. It is recorded in the current account as a negative item.
Answer: A. It is recorded in the current account as a positive (plus) item.
You might also like to view...
For a theme park two-tier pricing can include a positive admission price and a zero per-ride fee
Indicate whether the statement is true or false
For substitutes, cross price elasticity of demand is:
a. Negative b. Positive c. between zero and one only d. zero.
Suppose that Bill wants to dine at a fancy restaurant, but the only available table is in the smoking section. Bill dislikes the smell of cigarette smoke. He notices that only one person, Peter, is smoking in the smoking section. Bill values the absence of smoke at $15 . Peter values the ability to smoke in the restaurant at $10 . In order for Bill to pay Peter not to smoke, he will need to tip
the waiter $10 to facilitate the transaction. Which of the following represents an efficient solution? a. Peter continues to smoke because the cost to Bill to pay him not to smoke is between $20 and $25, which exceeds the benefit to him of no smoking ($15). b. Bill offers Peter between $10 and $15 not to smoke, and he pays the waiter $10 . Peter accepts, and both parties are better off. c. Bill offers Peter between $10 and $15 not to smoke, and he pays the waiter $10 . Peter declines because he has a right to smoke in the smoking section. d. Bill offers Peter $5 not to smoke, and he pays the waiter $10 . Peter accepts, and both parties are better off.
Opportunity cost can best be defined as
A) the interest cost of financing a business loan at the bank. B) the value of all of the alternatives sacrificed. C) the value of the next-highest-ranked alternative. D) There is no real definition for opportunity cost.