Ch.24 economic issues

Positive balance of payment is _______

• When a country's exports exceed its imports
• When a country's exports are equal to its imports
• When a country has a trade deficit
• When a country's imports exceed its exports

what is an inflation?

• Decrease in the general price level of goods and services
• Stagnation in the general price level of goods and services
• Increase in the general price level of goods and services
• Increase in the general quality of goods and services

why is government want a low unemployment ?

• To indicate a healthy economy with more people working and contributing to the country's growth.
• To keep wages low
• To make the country look more successful
• To increase the burden on social welfare programs

what happened if a GDP falls for a country?

• It indicates an increase in the economic output and overall economic activity.
• It indicates a decrease in the economic output and overall economic activity.
• It leads to a rise in the standard of living for the citizens.
• It has no impact on the economic activity of the country.

state four stages in business cycle

• Upsurge, apex, reduction, base
• Growth, climax, decline, bottom
• Rise, summit, decrease, low
• Growth, boom, recession, slump

what are the two main types of direct taxes?

• sales tax and excise tax
• payroll tax and estate tax
• income tax and property tax
• import tax and gift tax

explain VAT

how a government raise money?

• Taxes, borrowing, and selling goods and services
• Printing more currency
• Giving away money for free
• Asking other countries for donations

what will be the infuence of interest rate?

• It can impact borrowing costs, savings returns

• It leads to higher unemployment rates
• It only affects stock market prices
• It has no impact on the economy