The Table Contains Balance of Payments Data (+ and −)For

question 30

Multiple Choice

The table contains balance of payments data (+ and −) for the hypothetical nation of Zabella. All figures are in billions of dollars. Zabella's balance on the capital and financial account shows a

• A)deficit of $5 billion.
• B)surplus of $10 billion.
• C)deficit of $10 billion.
• D)surplus of $5 billion.

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Definitions:

Lump-Sum Tax Rate

A tax that is a fixed amount, no matter the change in circumstance of the taxed entity. This creates a situation where the tax burden falls more heavily on those with lower income or profit.

Marginal Tax Rate

The amount of tax applied to an additional dollar of income, often used in progressive tax systems.

Average Tax Rate

The ratio of the total amount of taxes paid to the total tax base (taxable income or spending), expressing the percentage of income that is paid in taxes.

Income

Monetary payment received for work, from investments, or from government benefits, contributing to an individual's wealth.