International and development economics - OCR A-Level Economics (H460) quiz

Opportunity cost than another country

Money cost, measured in absolute terms, than another country

Rate of corporate taxation on producers than another country

Real effective exchange rate against another trading country

Above both of the two countries' domestic opportunity-cost ratios

Between the two countries' opportunity-cost ratios

Below both of the two countries' domestic opportunity-cost ratios

Exactly on one single country's opportunity-cost ratio and no other

Import prices rise relative to export prices

The currency depreciates

Export prices rise relative to import prices

Tariffs are removed

Lower its domestic price and raise the volume of imports into the country

Have no effect at all on domestic producers of the competing good

Increase consumer surplus by lowering the price paid by households

Raise its domestic price, cut imports and raise government revenue

It can protect an infant industry until it reaches efficient scale

It always lowers prices for consumers in the protecting country

It guarantees that no other trading partner will ever retaliate

It always maximises total world output and global allocative efficiency

Make exports dearer and imports cheaper

Make exports cheaper and imports dearer

Have no effect on trade

Always worsen the current account permanently

The price elasticity of demand for exports is perfectly inelastic

The country's exchange rate is fixed rather than floating freely

The sum of export and import price elasticities exceeds one

The government's fiscal budget is in surplus rather than deficit

Cross-border flows of investment and purchases of financial assets

Only the government's borrowing from domestic and overseas lenders

Changes in the domestic money supply set by the central bank

Trade in goods and services, plus income and transfers

Is a broader improvement in welfare including health and education

Measures only the change in a country's real gross domestic product

Deliberately ignores living standards and the welfare of the population

Cannot be measured or captured by any kind of economic indicator at all

The inflation rate and unemployment

Life expectancy and education

The Gini coefficient and the exchange rate

Exports and imports

Tests only macroeconomics and excludes microeconomic analysis entirely

Introduces brand-new content that does not appear in Components 1 and 2

Requires combining micro and macro analysis on an unseen theme

Contains no multiple-choice questions at any point in the whole paper

High incomes lead to excessive and harmful levels of saving

The level of saving has no effect on a country's development

Governments in poor countries always save far too much money

Low incomes mean low saving and so low investment