Economy

Correct answer: D

It concerns the general price level rather than one isolated price.

Correct answer: C

I is correct: Underemployment → Employment using less labour time or skill than available. A person may be employed yet insufficiently utilised. II is incorrect: Current account → External account covering goods, services and income flows. It also includes current transfers.

Correct answer: D

It is broader than income alone.

Correct answer: B

I is incorrect: Import tariff → Tax imposed on imported goods. It raises the landed cost unless absorbed elsewhere. II is incorrect: Poverty gap → Average shortfall below a poverty threshold under the chosen measure. It captures depth rather than only headcount.

Correct answer: A

Trade gains need not require an absolute productivity advantage.

Correct answer: C

I is incorrect: Structural transformation → Shift in economic activity across sectors. Development often changes employment and output shares. II is incorrect: Demographic dividend → Potential benefit from a larger working-age population share. Realising it requires productive employment and capabilities.

Correct answer: B

It differs from merely holding a small tradable security portfolio.

Correct answer: A

I is correct: Human Development Index → Composite of health, education and income dimensions. It is broader than income alone. II is incorrect: Labour force → Employed persons plus unemployed persons seeking or available for work under the measure. It is not the entire population.

Correct answer: C

It differs from an official devaluation under a fixed-rate arrangement.

Correct answer: B

I is incorrect: Poverty gap → Average shortfall below a poverty threshold under the chosen measure. It captures depth rather than only headcount. II is incorrect: Import quota → Quantitative limit on imports. It restricts volume rather than imposing only a tax.

Correct answer: D

Development often changes employment and output shares.

Correct answer: C

I is incorrect: Sustainable development → Meeting present needs while preserving future generations' ability to meet theirs. It links economic, social and environmental objectives. II is incorrect: Comparative advantage → Lower opportunity cost of producing a good. Trade gains need not require an absolute productivity advantage.

Correct answer: A

It is an age-structure indicator.

Correct answer: C

I is correct: Trade balance → Merchandise exports minus merchandise imports. It excludes services from the merchandise measure. II is incorrect: Balance of payments → Systematic record of transactions between residents and non-residents. It includes current and capital/financial transactions.

Correct answer: A

It restricts volume rather than imposing only a tax.

Correct answer: B

I is correct: Labour force → Employed persons plus unemployed persons seeking or available for work under the measure. It is not the entire population. II is incorrect: Portfolio investment → Investment in financial securities without direct managerial control. It can include shares and bonds.

Correct answer: C

It captures depth rather than only headcount.

Correct answer: D

I is incorrect: Current account → External account covering goods, services and income flows. It also includes current transfers. II is incorrect: Comparative advantage → Lower opportunity cost of producing a good. Trade gains need not require an absolute productivity advantage.

Correct answer: A

It links economic, social and environmental objectives.

Correct answer: B

I is correct: Portfolio investment → Investment in financial securities without direct managerial control. It can include shares and bonds. II is incorrect: Dependency ratio → Dependants relative to the working-age population. It is an age-structure indicator.

Correct answer: D

It raises the landed cost unless absorbed elsewhere.

Correct answer: A

I is incorrect: Underemployment → Employment using less labour time or skill than available. A person may be employed yet insufficiently utilised. II is incorrect: Poverty gap → Average shortfall below a poverty threshold under the chosen measure. It captures depth rather than only headcount.

Correct answer: B

Each unit buys more foreign currency.

Correct answer: C

I is correct: Foreign direct investment → Cross-border investment involving lasting influence in an enterprise. It differs from merely holding a small tradable security portfolio. II is incorrect: Trade balance → Merchandise exports minus merchandise imports. It excludes services from the merchandise measure.

Correct answer: A

Realising it requires productive employment and capabilities.