When a U.S. citizen invests in foreign assets, the transaction is recorded in the balance of payments as a
a. credit in financial account.
b. debit in the financial account.
c. credit in the current account.
d. debit in the current account.
b. debit in the financial account.
You might also like to view...
Figure 5-17
In Figure 5-17, which of the marked points would an economist use to help him construct a single demand curve for X?
A. A and B B. C and D C. A and C D. A and D
The Cost-Benefit Principle indicates that an action should be taken if:
A. its extra benefit is greater than or equal to its extra cost. B. its average benefits exceed its average costs. C. its net benefit (benefit minus cost) is zero. D. its total benefits exceed its total costs.
Which of the following is a typical example of an increasing-cost industry?
a. a tuna fishing company b. a safety pin maker c. a department store d. a bank
When Brazil can generate a product using fewer labor hours and resources than the United States, an economist would say that Brazil had:
A. a comparative advantage in production of the product. B. an absolute advantage in production of the product. C. a higher opportunity cost of producing the product. D. no incentive to import the product, regardless of the cost-price conditions for other products.