The purchase of a meal by an American tourist at La Tour d'Argen (a restaurant in Paris) would find its way into the American balance of payments as a:

A. positive entry in the current account.
B. negative entry in the current account.
C. positive entry in the financial and capital account.
D. negative entry in the financial and capital account.

Answer: B

Economics

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Most payments in the United States for goods and services are made using

A) currency. B) traveler's checks. C) checking account deposits. D) gold.

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Which of the following cost relationships is not true?

A) AFC = AC - MC B) TVC = TC - TFC C) The change in TVC/the change in Q = MC D) The change in TC/ the change in Q = MC

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