Which of the Following Is an Example of a Surplus

question 119

Multiple Choice

Which of the following is an example of a surplus item on the balance of payments?

• A) Private gifts to foreign residents
• B) Public gifts to foreign residents
• C) Interest receipts from foreign residents
• D) Purchases of gold from foreign residents

---

Definitions:

Laissez-Faire

Laissez-faire is an economic philosophy advocating for minimal government intervention in the market, with transactions between private parties being free from tariffs, subsidies, and enforced monopolies.

Government Interference

Actions by the government that affect the market, often with the intention of correcting market failures or achieving a social objective.

Full Employment

A situation where all available labor resources are being utilized in the most economically efficient way, with no involuntary unemployment.

Property Rights

Legal rights to possess, use, and dispose of assets including physical, intellectual, and real property.