Which of the Following Would Be Part of the Nation's

question 82

Multiple Choice

Which of the following would be part of the nation's current account?

• A)An old house purchased by an American in Italy
• B)The purchase of a U.S. Treasury bond by a foreigner
• C)The interest an American earns on a British bond
• D)A factory built by the Japanese in the United States

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Definitions:

Input Decisions

Concerns the selection and use of resources, such as labor, materials, and capital, that are required for the production of goods or services.

Long Run

A period in which all factors of production and costs are variable, allowing firms to adjust fully to changes.

Lemonade Stand

A small business venture, often used as an example for basic business principles, where lemonade is sold, typically by younger entrepreneurs.

Fixed Cost

Expenses that do not vary with the level of output or sales, such as rent, salaries, or insurance premiums.