QUIZ 4 - Taxes, Trade, & Growth

Individual income tax in the US follows which type of tax structure?

• Proportional

• Regressive

• Marginal/Progressive

• Excise

When deficits and debt move in synchrony, this is referred to as…

• Synchronous debt

• Synchronous deficits

• Twin debt

• Twin deficits

Grants given to universities for the purpose of offering professors professional development trainings that aim to enhance their teaching are examples of what type of investment?

• Investment in physical capital

• Investment in technological capital

• Investment in human capital

Worker productivity is influenced by these THREE factors…

• Technological change

• Physical capital

• Human capital

• Economies of scale

Trade balance is represented by the gap between…

• Supply & demand

• Price & quantity

• Labour & wages

• Exports & imports

Can domestic investment ever exceed domestic saving?

• No, domestic saving will always be less than domestic investment

• No, domestic investment will always be less than domestic saving

• Yes, if capital is flowing out of the country into foreign investments

• Yes, if capital is flowing into a country from abroad

A trade deficit increases when…

• Private domestic savings increases

• Public domestic savings decreases

• Public domestic savings increases

• Domestic investment increases

What are the THREE main forms of protectionism, aimed to help domestic industries by restricting international trade?

• Corporate taxes

• Tariffs

• Import quotas

• Nontariff barriers

Which argument in favour of trade barriers is regulated by the WTO who states that countries can set their own safety standards as long as regulations are based upon science?

• Anti-dumping

• Infant industry

• Unsafe consumer products

• Environmental protection

When there are no more Pareto improvements available to a situation, it is designated as…

• Pareto efficient

• Pareto inefficient

• Fair

• Unfair