If Wes in Wisconsin Buys $200 Worth of Stock in Toshiba

question 33

Multiple Choice

If Wes in Wisconsin buys $200 worth of stock in Toshiba, and the Japanese use the $200 to buy a wheel of cheese from Wes, then the U.S. net exports:

• A) and net capital outflow are both zero.
• B) and net capital outflow both equal $200.
• C) is zero and net capital outflow is $200.
• D) equals $200 and net capital outflow is zero.

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Definitions:

Explicit Costs

Direct, out-of-pocket payments for costs of production, such as wages, rent, and materials.

Entrepreneur's Potential Earnings

The forecasted income an entrepreneur can expect from their business venture, taking into account risks and opportunities.

Annual Lease

A contract for the rental of property, typically real estate, that lasts for one year.

Payments to Workers

Payments to workers include salaries, wages, benefits, and other compensation provided to employees in exchange for their labor.