One Source of the Supply of Dollars in the World

question 165

Multiple Choice

One source of the supply of dollars in the world is

• A) the purchase of U.S. exports by foreign residents.
• B) the sale of U.S. domestic assets to foreigner residents.
• C) U.S. imports of foreign merchandise.
• D) U.S. sales of gold to foreigner residents.

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Definitions:

Implicit Costs

The opportunity costs of using resources owned by the firm for its own production, instead of earning income elsewhere.

Explicit Costs

Direct, out-of-pocket payments made for the operation of a business, such as wages, rent, and materials.

Accounting Profits

The difference between total revenues and explicit costs, representing the net income reported on a company's financial statements.