Which of the Following Is TRUE of the U

question 51

Multiple Choice

Which of the following is TRUE of the U.S.balance of payments?

• A) It includes as receipts all inflows of funds from foreigners to the United States.
• B) It includes as receipts only inflows of funds used to purchase U.S. produced goods and services.
• C) It includes as receipts inflows of funds used to purchase U.S. goods or services or to acquire U.S. assets but not funds received as unilateral transfers.
• D) It includes as receipts inflows of funds used to purchase U.S. goods or services and funds received as unilateral transfers but not inflows of funds used to acquire U.S. assets.

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Definitions:

Profit Maximizing

The process of increasing the difference between total revenue and total cost to achieve the highest possible profit.

Marginal Revenue Product

The additional revenue generated by employing one more unit of a factor of production, keeping all other factors constant.

Wage Rate

The amount of money workers are paid per unit of time, usually specified in terms of an hour, representing compensation for labor services.

Employment

The condition of having paid work or being engaged in a productive activity.