With Respect to a Balance of Payments Between Nations Calculation

question 45

Multiple Choice

With respect to a balance of payments between nations calculation, transactions are recorded in three categories. These are the current account, the capital account,
And the:

• A) goods inventory.
• B) cost of goods sold.
• C) manufacturer's inventory.
• D) capital goods.
• E) official reserves.

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Definitions:

Export Subsidy

A government policy to encourage export of goods and services through direct payments, tax relief, or other financial incentives.

Net Welfare

The overall well-being of individuals or society, accounting for all benefits and costs, including those that are not traded in markets.

Economic Progress

The overall growth and improvement in an economy’s productivity, standards of living, and welfare over time.

Ad Valorem Tariffs

Tariffs based on a percentage of the value of the imported goods, used as a trade policy tool.