The Balance of Payments ____

question 60

Multiple Choice

The balance of payments ____.

• A) b and e
• B) is always zero
• C) is positive when the nation runs a trade surplus
• D) is negative when the nation runs a trade deficit
• E) is an itemized account of a nation's foreign economic transactions

---

Definitions:

Endowment Effect

A psychological and behavioral economics phenomenon where individuals value an owned object higher than a similar object they do not own.

Item Value

The worth or usefulness of a specific good or service, often determined by factors like utility, demand, and rarity.

Ownership

The legal right or status of having control over something, typically property or goods.

Traditional Economic Theory

A framework that explains economic decisions and behaviors based on the assumption that agents are rational and seek to maximize utility or profit.