Which of the Following Would Be a Credit in the U.S

question 47

Multiple Choice

Which of the following would be a credit in the U.S. balance of payments?

• A)​the purchase of a German car by an American
• B)​the purchase of insurance from Lloyds of London by a U.S.resident
• C)​a trip to Japan by an American student
• D)​a short-term loan extended to a South American country by the United States government

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Definitions:

Marginal Cost

The cost of producing one additional unit of a product or service, reflecting the change in total cost that arises from an increase in production.

Socially Efficient

The optimal allocation of resources that occurs when the social welfare is maximized, accounting for all costs and benefits to society.

Price Discrimination

A strategy where a seller charges different prices for the same product or service to different customers, based on the market segment each represents.

Market Power

The ability of a company or group of companies to influence or control the terms and conditions of the market to their advantage, often through monopolistic or oligopolistic practices.