The General Formula Used for Calculating the Net National Loss

question 17

Multiple Choice

The general formula used for calculating the net national loss from a trade barrier as a percentage of GDP may fail to account for:

• A)the production effect of the trade barrier.
• B)the consumption effect of the trade barrier.
• C)the government revenue generated from the trade barrier.
• D)the rent-seeking costs of the local firms.

Grasp the responsibilities and liabilities of parties in a contract breach scenario.

Understand the ability-to-pay principle of taxation and distinguish it from other taxation principles.

Explain the concept of economic income and how it is calculated.

Identify and understand the concepts of horizontal and vertical equity in taxation.

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Definitions:

Reliability

The extent to which the outcome of a measurement, calculation, or specification can be trusted to be correct.

Measuring Device

An instrument used to ascertain the size, quantity, or degree of something.

Predictability

The degree to which a future event or outcome can be forecasted based on present or past data.

Reliability

The degree to which the result of a measurement, calculation, or specification can be depended on to be accurate.