Which of the Following Would Call for Inflows of Money

question 21

Multiple Choice

Which of the following would call for inflows of money to the United States?

• A)Gold flows into the United States.
• B)U.S. firms sell insurance to Brazilian shippers.
• C)The United States sends foreign aid to developing countries.
• D)The United States imports German automobiles.

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Definitions:

Scarcity

The basic economic issue arises from endless human desires and needs in a context of scarce resources.

Full Production

The level of production where a company or economy is maximizing its use of resources and operating at its highest efficiency.

Full Employment

Refers to the condition in the labor market where virtually all who are willing and able to work at prevailing wage rates are employed.

Capital Goods

Goods that are used in producing other goods and services, rather than being bought by consumers. This includes machinery, buildings, and equipment.