All of the Following Are Surplus Items in the Balance

question 58

Multiple Choice

All of the following are surplus items in the balance of payments EXCEPT

• A) purchases of foreign assets.
• B) exports of merchandise.
• C) foreign tourist expenditures.
• D) funds deposited in this country by foreign residents.

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Definitions:

P > MC

Indicates a situation where the price of a good is greater than the marginal cost of producing it, suggesting a potential for profit.

Monopolistically Competitive

A market structure characterized by many sellers offering differentiated products, leading to some degree of market power but still allowing for competition.

Efficient Use

The optimal utilization of resources to achieve the highest possible output or satisfaction with the least possible waste.

Minimum ATC

The point on a firm’s average total cost curve where the cost is at its lowest, representing the most efficient scale of production.