Question

Which one of the following is Not true of the reasons that governments tax exports?

	1) In the case of large countries, to improve their terms of trade.
	2) To reserve the export good for domestic use.
	3) To raise tax revenue.
	4) To redistribute domestic income.
	5) In the case of small countries, to improve their terms of trade.

If the U.S. imposes domestic content requirement on Chinese firms, it implies the U.S. requires Chinese firms to use Chinese inputs in the production of goods that they export to the U.S.

	1) True
	2) False

For most nations, the ratio of imports to total purchases in the public sector is much higher than in the private sector.

	True
	False

Answer 1

Hi! Welcome to Chegg!

Which one of the following is Not true of the reasons that governments tax exports?

Ans:

5)	In the case of small countries, to improve their terms of trade.

If the U.S. imposes domestic content requirement on Chinese firms, it implies the U.S. requires Chinese firms to use Chinese inputs in the production of goods that they export to the U.S.

Ans. 2) False.

Reason: Not Chinese inputs but US inputs.

For most nations, the ratio of imports to total purchases in the public sector is much higher than in the private sector.

Ans. True.

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