Which of the Following Is a Deficit Item in the U.S

question 261

Multiple Choice

Which of the following is a deficit item in the U.S. current account?

• A) Toyota builds a new plant in California.
• B) Many U.S. residents who previously had not traveled abroad decide to make Mexico a tourist destination.
• C) A Saudi Arabian prince builds six new homes in California.
• D) Sony buys a new film studio in Florida.

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Definitions:

Utilization

The degree to which a capacity, resource, or system is being used effectively to produce goods or services.

Break-even Point

The point at which total cost and total revenue are equal, meaning the business is neither making a profit nor a loss.

Sugar Mills

Facilities dedicated to processing sugarcane or sugar beets into raw sugar and sometimes molasses and other byproducts.