Which of the Following Is an Indicator of Whether a Country

question 44

Multiple Choice

Which of the following is an indicator of whether a country can borrow?

• A) the size of the tax base
• B) the size of the economy
• C) the reputation of the head of government
• D) the size of the military
• E) All of these answers are correct.

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Definitions:

Free Trade

The free trade of goods and services across nations without the application of restrictions like tariffs, duties, and quotas.

Tariff Revenue

The income that a government earns from imposing tariffs, which are taxes on imports or exports.

Domestic Price

The charge for goods or services inside a nation's boundaries, differing from prices found in the global or foreign marketplace.

Free Trade

An economic policy that allows imports and exports among member countries with no or low tariffs, quotas, or other barriers to trade.