Trade, exchange rates and development - Eduqas A-Level Economics (A520) quiz

A lower absolute resource cost than any other country can manage

The highest possible selling price on world markets

A lower opportunity cost than another country

A higher output per worker than every trading rival

The value of exports minus the value of imports over the year

The nominal exchange rate against a basket of trading partners

The overall balance recorded on the current account of the balance of payments

The index of export prices divided by the index of import prices (times 100)

Raise the domestic price, cut imports and raise government revenue

Lower the domestic price, raise import volumes and increase consumer surplus for households

Leave the domestic price unchanged while still cutting the volume of imports purchased

Always raise total economic welfare in the importing country by protecting domestic jobs

A free-trade area

A customs union

A bilateral treaty

The WTO

The central bank pegging it daily using its foreign-exchange reserves

A target band agreed and policed by the World Trade Organisation

The demand for and supply of the currency

The domestic rate of consumer price inflation acting alone

Exports dearer and imports cheaper

Exports and imports both cheaper

Exports and imports both dearer

Exports cheaper and imports dearer

The sum of the price elasticities of demand for exports and imports exceeds 1

The exchange rate is fixed by the central bank rather than allowed to float freely

Domestic inflation is held at exactly zero throughout the adjustment period that follows

The country is already running a sustained surplus on its government budget balance

Short-term portfolio buying of overseas shares and bonds with no lasting control

Investment by a firm in productive assets in another country

A grant of official government aid handed to a low-income developing country

A concessional development loan advanced to a government by the World Bank

Nothing more than a rise in the level of real gross domestic product

Something always captured fully by GDP per capita on its own as a single figure

A broad, qualitative improvement in living standards and welfare

Entirely unrelated to outcomes in health, education or wider human welfare

The annual rate of consumer price inflation and the rate of unemployment

The nominal effective exchange rate together with the country's terms of trade

The size of the government budget deficit and the total stock of national debt

Life expectancy (health) and years of schooling (education)

Trade liberalisation and attracting foreign direct investment

Building infrastructure that is funded by official overseas development aid

A state-led industrial policy directing investment into chosen strategic sectors

Direct government provision of free education and other public services

Cancelling the whole external debt that a low-income country owes to foreign creditors

Providing small loans to poor people excluded from conventional banking

Pegging the exchange rate to a major currency to anchor expectations of inflation

Raising tariffs on imported goods to shelter newly established domestic industries