Social Accounting and Global Trade

A tariff is basically

• A tax on imported goods

• A tax on exported goods

• A measure to encourage imports

• A measure to encourage exports

A quota is specifically

• A lower limit on the quantity of goods that can be imported

• An upper limit on the amount of goods that can be imported

• A measure to encourage imports

• A measure to limit the quantity of goods exported

When a government seeks to discourage the import of goods, it may restrict the sale or purchase of foreign currency. This is called

• Tariffs

• Quotas

• Licenses

• Exchange control

The devaluation of a country's currency results in

• Exports more expensive, imports are cheaper

• Imports more expensive, exports are cheaper

• Both imports and exports become more expensive

• Both imports and exports become less expensive

Which of the following is LEAST likely to be a measure used to finance a balance of payments deficit?

• Imposing a tariff on imported goods

• Exchange controls to restrict the sale or purchase of foreign currency

• Borrowing from other countries

• Increasing the value of the local currency

The balance of trade is specifically

• Payments made or received by the government

• The difference between imports and exports

• A balance on the capital account

• A balancing item

Changes in the economy such as greater access to healthcare, education and freedom reflect

• Economic growth

• Economic development

• Increased output

• National Income

An increase in national income reflects

• Economic development

• Negative economic growth

• Zero growth

• Economic growth

Per capita income is measured by

• Capital consumption divided by population

• NI divided by population

• The marginal income per person

• The life expectancy of the population

Per capita income is the

• Marginal income per person

• Average income per person

• Total income per person

• Income level in the economy