Which One of the Following Items Is a "Credit" Item

question 5

Multiple Choice

Which one of the following items is a "credit" item in a country's balance-of-payments accounts?

• A) unilateral transfers received from another country
• B) decrease in short-term home country assets owned by foreign private citizens
• C) imports of goods
• D) domestic purchase of a foreign corporation's bond

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Definitions:

Edgeworth Box

A diagram used in microeconomics to show the efficient distribution of resources between two individuals or the allocation of two goods in an economy.

Pareto Optimal

In resource distribution, a framework where the betterment of one party directly causes a disadvantage to another party.

Initial Allocation

The initial distribution of resources, goods, or assets among various parties or agents in an economic model or real-world scenario.

Pareto Optimal Allocations

A situation where it is impossible to make any one individual better off without making at least one individual worse off, indicating an efficient allocation of resources.