A VAT (Value Added Tax)

question 126

Multiple Choice

A VAT (value added tax) :

• A)Is regressive in its effect.
• B)Has not proved popular outside of the U.S.
• C)Is not a tax on consumption.
• D)Is used exclusively by third world (less developed) countries.
• E)None of the above.

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Definitions:

Current Account

A component of a country's balance of payments that includes the trade balance, net primary income, and net income transfers, indicating the flow of goods, services, and payments in and out of the country.

Net Exports

Net exports are the difference between a country's total exports of goods and services and its total imports of them, representing the external demand for a country’s goods.

Statistical Discrepancy

The difference between two figures that are supposed to match but do not, often found in economic data due to estimation errors or timing differences.

Current Account

A country's trade balance, plus net income and direct payments, representing the difference between a nation's savings and its investment.