Economics 0455: International aspects Topical Past Paper Questions

A country has a deficit on the current account of its balance of payments. What would be most likely to reduce the size of its deficit? A a reduction of tariffs on its imports B an increase in the exchange rate of its currency C increased spending by tourists from abroad D a rise…

Which government policy would encourage greater international trade? A an increase in the level of domestic regulation B an increase in the level of tariffs on imports C the abolition of domestic subsidies for declining industries D the abolition of free trade agreements

What is included in the primary income component on the current account of the balance of payments? A dividends and interest from investment in other countries B expenditure on accommodation by international tourists visiting a country C expenditure on imported raw materials D so…