In the BOP, Travel and Tourism Are Included in the Category

question 34

Multiple Choice

In the BOP, travel and tourism are included in the category of

• A) unilateral transfers.
• B) capital account.
• C) merchandise account.
• D) services account.

---

Definitions:

Surplus

The amount by which the quantity of a product supplied exceeds the quantity demanded at a specific price, often leading to a decrease in price.

Shortage

A situation where the demand for a product or service exceeds its supply in a market.

Equilibrium Quantity

Equilibrium Quantity is the quantity of goods or services supplied and demanded at the equilibrium price, where the quantity supplied equals the quantity demanded.

Demand and Supply of Wheat

Refers to the quantity of wheat that consumers are willing to purchase at various prices and the quantity that producers are willing to offer for sale, which together determine the market price of wheat.