A citizen of Mexico who has lived in El Paso during the past three years has just sent $100 to relatives in Mexico for Christmas. This transaction is
A) counted in the U.S. balance of payments as a current account item.
B) counted in the U.S. balance of payments as a surplus item.
C) counted in the U.S. balance of payments as an export item.
D) none of the above.
Answer: A
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Technology is defined as
A) the maximum output which can be attained from a stock of physical capital. B) society’s pool of applied knowledge concerning the production of goods and services. C) output beyond the production possibilities boundary. D) the utilization of the most advanced machinery.
Assuming an entrepreneur does not pay herself, the $1,000 she could earn as an employee elsewhere is considered
A. An implicit cost. B. An explicit cost. C. A variable cost. D. A fixed cost.
The government is likely to block a merger if:
A. the firms remaining would all earn economic profit. B. it can be established that the merger would substantially reduce competition. C. the firms remaining would be able to charge a price above marginal cost. D. the firms that are merging are producing different products.
Which of the following would most likely NOT be taught in a macroeconomics course?
A) price changes in the world's oil markets B) factors leading to different economic growth rates among countries C) government actions in response to a slowdown in the economy D) the relationship between the inflation rate and the unemployment rate