If the Index of Export Prices Increases from 120 to 150

question 33

Multiple Choice

If the index of export prices increases from 120 to 150 and the index of import prices increases from 100 to 125,it may be said that

• A)the terms of trade have deteriorated.
• B)there has been no change in the terms of trade.
• C)there is insufficient information to calculate the terms of trade.
• D)the terms of trade have improved by 10%.
• E)the terms of trade have improved.

Identify the main sources of federal government revenue and their relative significance.

Recognize the economic implications of the size and structure of government on economic growth.

Explain the concept of progressive taxation and its effects on government revenue.

Understand the costs associated with the enforcement and administration of the tax system.

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Definitions:

Dependency Theory

A perspective in international relations and economics that examines the structural relationships between developed and developing countries, asserting that the development of the former comes at the expense of the latter.

Rich and Poor Nations

Terms used to differentiate countries based on economic status, wealth distribution, and standard of living.

Modernization Theory

A theory in sociology that posits countries go through a process of social evolution, from traditional to modern stages, with industrialization and economic growth as key components of development.

Internal Characteristics

The innate or inherent traits, qualities, or attributes of an individual or entity, often distinguishing them from others.