World Economics Answers

Which of the following statements best describes how the U.S. recession is affecting other countries?

How do tariffs on imports affect a country’s balance of trade?

Say that Romania puts a tariff of 6% on its exports and 21% on its imports. If Romania has a trade deficit of (equivalent US dollars) $26.76 billion and gained tariff revenue of $18.9603 billion, how much are Romania’s imports worth?

Which statement(s) most directly apply to capitalism?I. There is heavy government regulation of industry.II. Individuals can start some, but not all, kinds of enterprises.III. The price and availability of goods is determined primarily by the market.

Suppose that the countries of Brazil, Argentina, Ecuador, and Venezuela have interdependent economies. The following table shows the imports and exports between each of these countries. All prices are given in millions of equivalent US dollars.Country of OriginExporting toAmount ($ 1,000,000)BrazilArgentina4,691BrazilEcuador4,791BrazilVenezuela1,526ArgentinaBrazil1,881ArgentinaEcuador1,971ArgentinaVenezuela2,153EcuadorBrazil3,106EcuadorArgentina3,672EcuadorVenezuela2,018VenezuelaBrazil4,535VenezuelaArgentina1,577VenezuelaEcuador1,871If these four countries trade only within this group, what is the difference between the highest balance of trade and the lowest balance of trade?

Say that Australia has a working population of 11,565,470 people, and that the average salary is $26,450 annually. How much tax revenue would Australia generate each year by instituting a 31.4% income tax?

Which of the following statements best describes how the U.S. recession is affecting other countries?

Suppose that Spain has a workforce of 22.85 million people, and that the average salary for each person is €24,200 annually. Spain has imports of €290.85 billion and exports of €200.13 billion. If the Spanish government levies a 7% tariff on exports, an 18% tariff on imports, and a 21% income tax, how will the revenue gained from tariffs and the revenue gained from income tax compare?

The following table shows the working populations, average salaries, and income tax rates of France and Germany.CountryWorkforceAverage Salary (€)Income Tax RateFrance31,491,23229,76669.3%Germany38,844,01732,10445.2%Based on the information in the table, how do the annual tax revenues of Germany and France compare to one another?

Say that Thailand has a workforce of 35,709,487 people, each of whom earns an average salary of (equivalent USD) $8,630 annually. If the Thai government wants to raise $70 billion in tax revenue, approximately where should it set the income tax rate?

Suppose that Lebanon has placed tariffs on its imports and exports. The import tariff is 13%, and the export tariff is 8%. If Lebanon has a balance of trade of (equivalent US dollars) $5,510,000 and received tariff revenue of $4,019,200, what are its imports and exports worth?

Say that Thailand has a workforce of 35,709,487 people, each of whom earns an average salary of (equivalent USD) $8,630 annually. If the Thai government wants to raise $70 billion in tax revenue, approximately where should it set the income tax rate?

Say that Malaysia has a workforce of 11,071,016, with an average yearly salary of (equivalent US dollars) $15,196. How much more revenue will the Malaysian government gather if it sets the income tax at 17% than if it sets the income tax at 8%, to the nearest million dollars?

Which economic system has no government involvement in the market?

The following table shows the working populations, average salaries, and income tax rates of France and Germany.CountryWorkforceAverage Salary (€)Income Tax RateFrance31,491,23229,76669.3%Germany38,844,01732,10445.2%Based on the information in the table, how do the annual tax revenues of Germany and France compare to one another?

Suppose that Bangladesh, India, Pakistan, and Nepal are economically interdependent. The following table shows the exports and imports of each country, with all monetary values given in millions of equivalent US dollars.Country of OriginExporting to...Amount ($ 1,000,000)BangladeshIndia2,817BangladeshPakistan2,369BangladeshNepal3,039IndiaBangladesh2,023IndiaPakistan3,462IndiaNepal2,184PakistanBangladesh3,201PakistanIndia2,336PakistanNepal2,338NepalBangladesh2,707NepalIndia3,363NepalPakistan2,332Based on the information in the table, assuming that these four countries trade strictly within the group, what is the value of the greatest trade balance in this group?

Say that Malaysia has a workforce of 11,071,016, with an average yearly salary of (equivalent US dollars) $15,196. How much more revenue will the Malaysian government gather if it sets the income tax at 17% than if it sets the income tax at 8%, to the nearest million dollars?

Suppose that the countries of Brazil, Argentina, Ecuador, and Venezuela have interdependent economies. The following table shows the imports and exports between each of these countries. All prices are given in millions of equivalent US dollars.Country of OriginExporting toAmount ($ 1,000,000)BrazilArgentina4,691BrazilEcuador4,791BrazilVenezuela1,526ArgentinaBrazil1,881ArgentinaEcuador1,971ArgentinaVenezuela2,153EcuadorBrazil3,106EcuadorArgentina3,672EcuadorVenezuela2,018VenezuelaBrazil4,535VenezuelaArgentina1,577VenezuelaEcuador1,871If these four countries trade only within this group, what is the difference between the highest balance of trade and the lowest balance of trade?

Over the course of a year, a nation records that its exports total an equivalent of $61,475,059, and its imports total an equivalent of $69,696,824. What is this nation’s balance of trade?

Cynthia, a resident of Ottawa, earns $41,875 annually. If the Canadian government levies an income tax of 18.6% on Cynthia’s tax bracket, what is her annual take-home pay?