Public finance and international trade

Question 1 of 10

A budget deficit occurs when government

Question 2 of 10

Devaluation is most likely to improve the balance of payments if demand for exports is

Question 3 of 10

A tax on imported goods is a

Question 4 of 10

A tariff is

Question 5 of 10

A tax that takes a higher percentage of income as income rises is

Question 6 of 10

The theory that countries should specialise in goods they can produce at a lower opportunity cost is the theory of

Question 7 of 10

An import quota restricts trade by

Question 8 of 10

Country A produces 10 cloth or 5 rice per worker; country B 6 cloth or 4 rice. Country A has a comparative advantage in

Question 9 of 10

The incidence of a tax refers to

Question 10 of 10

A country exports goods worth $5bn and imports $7bn, with net services of +$1bn. Its current account (ignoring transfers) is