Which of the Following Transactions Directly Leads to a Surplus

question 177

Multiple Choice

Which of the following transactions directly leads to a surplus on the U.S. capital and financial account?

• A) An American purchases a share of stock on the Tokyo exchange.
• B) An American sells wheat to an African nation.
• C) A Japanese resident purchases a U.S. government bond.
• D) A resident of France visits the United States.

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Definitions:

Entry

The act or process of entering into a market as a new supplier or producer, often facing barriers such as high startup costs or regulations.

Breaks Even

The point at which total costs and total revenue are equal, resulting in no net loss or gain.

Short Run

A time period during which at least one input, like plant size or capital, is fixed and cannot be changed, focusing on immediate operational decisions.

Scale of Production

The size or magnitude of manufacturing operations, which can influence costs, efficiency, and profitability.