Which of the Following Falls on the Minus Side of the U.S

question 8

Multiple Choice

Which of the following falls on the minus side of the U.S. balance of payments?

• A) payments to the United States for insurance
• B) payments of dividends and interest on investments abroad
• C) return on capital invested abroad
• D) new foreign investments in the United States
• E) spending by American tourists overseas

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Definitions:

Producer Surplus

The difference between the amount a producer is willing to accept for a product and the actual amount they receive in the market, indicating economic benefit.

Supply Curve

A graphical representation of the relationship between the price of a good and the quantity supplied.

Supply Curve

A visual chart depicting how the price of a product or service correlates with the amount a vendor is prepared and capable of providing to the marketplace.

Producer Surplus

The difference between what producers are willing to accept for a good or service versus what they actually receive, usually represented as the area above the supply curve and below the market price.