A Balance of Payments ________ Is Associated with a ________

question 38

Multiple Choice

A balance of payments ________ is associated with a ________ of international reserves.

• A) surplus; loss
• B) surplus; gain
• C) deficit; gain
• D) balance; loss

---

Definitions:

Sunk Costs

Costs that have already been incurred and cannot be recovered or altered, and thus should not affect future business decisions.

Side-Effect Costs

Unintended expenses or losses that occur as a result of business decisions, not directly related to the project in question.

Incremental Overhead

Additional overhead costs that are incurred when an organization increases its production volume or undertakes new activities.

Financing Costs

Expenses incurred by a company in the process of raising capital through debts and/or equity, including interest payments and commissions.