Which of the Following Would NOT Be Considered a Typical

question 58

Multiple Choice

Which of the following would NOT be considered a typical BOP transaction?

• A) Toyota U.S.A. is a U.S. distributor of automobiles manufactured in Japan by its parent company.
• B) The U.S. subsidiary of European financial giant, Credit Suisse, pays dividends to its parent in Zurich.
• C) A U.S. tourist purchases gifts at a museum in London.
• D) All are example of BOP transactions.

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Definitions:

Production Function

A mathematical model that describes the relationship between inputs used in production and the resultant output of goods or services.

Labor

Workforce or employment involved in the creation of goods and services within an economy.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of that good that consumers are willing to purchase at different prices.

Labor Supply Curve

Represents the relationship between the quantity of labor supplied and the wage rate in a given period.