In the Balance of Payments, a Deficit Item Is Any

question 160

Multiple Choice

In the balance of payments, a deficit item is any transaction

• A) that leads to a receipt by a resident of a country or its government.
• B) that leads to a payment by a resident of a country or its government.
• C) that is an export of a good or service.
• D) that makes residents of a country worse off.

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Definitions:

Primary Production

The production of organic compounds from atmospheric or aquatic carbon dioxide, principally through the process of photosynthesis or chemosynthesis.

Photosynthesis

The process by which green plants, algae, and some bacteria convert light energy into chemical energy stored in glucose, using carbon dioxide and water.

Carbon Dioxide

A gas that has no color or smell, created when carbon and organic compounds are burned or through the process of breathing. This gas is taken in by plants during the act of photosynthesis.