#1
What is the primary focus of economic interdependence?
Isolationism
Self-sufficiency
International cooperation
Autarky
#2
According to the theory of comparative advantage, what should nations focus on in international trade?
Producing all goods domestically
Importing only luxury goods
Producing goods with the lowest opportunity cost
Avoiding specialization
#3
What is the primary goal of international trade according to the theory of comparative advantage?
Achieving self-sufficiency
Maximizing profits for individual countries
Increasing overall economic welfare
Minimizing global economic cooperation
#4
In the context of economics, what does the term 'comparative advantage' refer to?
The ability to produce a good using fewer resources than others
The total quantity of goods produced
The market price of a good
The overall economic output of a country
#5
Which economist is credited with introducing the concept of comparative advantage?
Adam Smith
Karl Marx
David Ricardo
John Maynard Keynes
#6
What is the key idea behind the principle of absolute advantage in economics?
Every country should strive for self-sufficiency
A country can produce more of a good using the same resources as another country
International trade is always harmful
Countries should only focus on producing goods they can produce most efficiently
#7
In the context of international trade, what is the term 'trade barrier' referring to?
A country's strong currency
A policy that restricts the free flow of goods and services between countries
The balance of trade
A country's comparative advantage
#8
What is the relationship between economic interdependence and global supply chains?
They are unrelated concepts
Economic interdependence hinders global supply chains
Global supply chains enhance economic interdependence
Global supply chains are a form of self-sufficiency
#9
What is a potential drawback of excessive economic interdependence among nations?
Increased global stability
Reduced risk of financial crises
Vulnerability to economic shocks in one country affecting others
Enhanced economic equality
#10
How does a country benefit from exploiting its comparative advantage in international trade?
Increased production costs
Lower opportunity costs
Trade deficits
Reduced specialization
#11
Which of the following is an example of a non-tariff trade barrier?
Import quotas
Customs duties
Embargoes
Exchange rates
#12
What role does the World Trade Organization (WTO) play in promoting economic interdependence?
Encouraging protectionism
Facilitating negotiations and resolving trade disputes
Imposing trade barriers
Advocating for self-sufficiency
#13
Which of the following is an example of a factor that can disrupt economic interdependence between countries?
Increasing international cooperation
Trade agreements
Political instability or conflict
Reduced tariffs