Public finance and international trade

Question 1 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 2 of 10

Devaluation of a currency makes exports

Question 3 of 10

Laffer curve analysis suggests that very high tax rates may

Question 4 of 10

The balance of trade is the difference between

Question 5 of 10

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

Question 6 of 10

A budget deficit occurs when government

Question 7 of 10

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

Question 8 of 10

A tax of 15% on all incomes is

Question 9 of 10

The incidence of a tax refers to

Question 10 of 10

A J-curve effect describes how a devaluation