Which of the Following Would Decrease the Current Account Balance

question 44

Multiple Choice

Which of the following would decrease the current account balance of the United States?

• A)a decrease in imports
• B)a decrease in the amount of money the U.S.government sends in foreign aid to other countries
• C)a decrease in the balance of trade
• D)a decrease in the amount of income U.S.companies pay out to foreigners who own investments in the U.S.

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Definitions:

Average Total Cost

The overall expense of manufacturing divided by the quantity of products made, indicating the expense for each unit of production.

Profit-maximizing

The process of adjusting production and pricing strategies to achieve the highest possible profit from the sale of goods and services.

Short Run

A time period in economics during which at least one input is fixed and cannot be changed.

Economic Profit

The difference between total revenue and both explicit and implicit costs; the profit that exceeds the opportunity cost of resources.