Which of the Following Is a Deficit Item in the U.S

question 261

Multiple Choice

Which of the following is a deficit item in the U.S. current account?

• A) Toyota builds a new plant in California.
• B) Many U.S. residents who previously had not traveled abroad decide to make Mexico a tourist destination.
• C) A Saudi Arabian prince builds six new homes in California.
• D) Sony buys a new film studio in Florida.

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Definitions:

Labor

The human effort, both physical and mental, used in the production process.

Capital

Financial assets or the financial value of assets, such as cash and securities; also, factories, machinery, and equipment used to produce goods or services.

Production Outcomes

Production outcomes refer to the results of the production process, quantified in terms of quantity, quality, and efficiency of the goods or services produced.

Stocks

Stocks represent shares of ownership in a company, giving shareholders a claim on part of the company's assets and earnings.