A Record of All Transactions Between Households, Firms, and the Government

question 218

Multiple Choice

A record of all transactions between households, firms, and the government of one country and the rest of the world is the

• A) balance of trade.
• B) balance of payments.
• C) International Monetary Fund.
• D) government budget.

---

Definitions:

Economic Profit

The gap between an enterprise's total earnings and its combined explicit and implicit outlays.

Farming

The practice of cultivating the land or raising stock, such as crops and livestock, typically for food production.

Diminishing Marginal Product

Diminishing marginal product is an economic principle stating that adding an additional factor of production results in smaller increases in output after a certain point.

Variable Cost

A cost that varies with the level of output or production activity.