The Net Balance on the Balance of Payments Accounts

question 61

Multiple Choice

The net balance on the balance of payments accounts:

• A) always shows a surplus.
• B) always shows a deficit.
• C) is always zero.
• D) is either positive or negative.
• E) is arrived at without considering omissions and errors in transactions.

Analyze the effects of excise taxes on consumer and producer surplus.

Identify goods with the least and most deadweight loss due to taxation.

Comprehend the burden distribution of taxes between consumers and producers.

Evaluate tax strategies to minimize inefficiency and deadweight loss.

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Definitions:

Shares Outstanding

The total number of shares of stock that are currently owned by shareholders, including those held by institutional investors and restricted shares.

Share Price

The price of a single share of a company's stock, determined by market supply and demand.

Stock Dividend

Increases the number of shares outstanding, but at a slower rate than splits. Current shareholders receive additional shares on some proportional basis. Thus, a holder of 100 shares would receive 5 additional shares at no cost if a 5% stock dividend were declared.

Shareholder's Wealth

The total value of an individual's or entity's equity in a firm, essentially reflecting the market value of their shares.