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

question 152

Multiple Choice

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

• A) The U.S. government reduces the tariff rates on some imported goods.
• B) IBM pays dividends to British shareholders.
• C) Finn vodka becomes more popular in the United States.
• D) The U.S. government cuts back on military personnel stationed in S. Korea.

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Definitions:

Private Investment

The expenditure by private (non-government) firms on capital goods, such as equipment, buildings, and inventory investments.

Tax System

The legal framework and methods by which a government collects money from individuals and businesses to fund public services and infrastructure.

Economic Growth

A rise in the economy's production of goods and services across a certain timeframe, usually assessed using GDP.

Demographic Transition

The shift in a population from high birth and death rates to low birth and death rates, often associated with industrialization and improved living standards.