#1
Which of the following is a basic principle of economics?
Scarcity
Abundance
Waste
Excess
#2
What does GDP stand for?
Gross Domestic Product
Gross Development Process
Global Demand Pattern
Government Development Plan
#3
What is the term for a tax imposed on imported goods?
Subsidy
Quota
Tariff
Dumping
#4
What is a common measure of a country's standard of living?
Inflation rate
Unemployment rate
Human Development Index (HDI)
Gini coefficient
#5
Which economic concept refers to the total market value of all final goods and services produced in a country in a given period?
Gross Domestic Product (GDP)
Consumer Price Index (CPI)
Aggregate Demand (AD)
Money Supply (M2)
#6
What is the term for a situation where a country's imports exceed its exports?
Trade surplus
Trade deficit
Trade equilibrium
Balance of payments
#7
Which of the following is an example of a trade barrier?
Tariff
Free trade agreement
Export subsidy
Trade deficit
#8
What does comparative advantage suggest?
Countries should produce only what they can produce most efficiently
Countries should produce everything domestically
Countries should focus on producing high-tech goods
Countries should restrict trade with other nations
#9
What is the term for a situation where a country can produce a good at a lower cost than another country?
Absolute advantage
Comparative advantage
Specialization
Opportunity cost
#10
Which organization facilitates international trade negotiations and resolves disputes between member countries?
United Nations (UN)
World Health Organization (WHO)
World Trade Organization (WTO)
International Monetary Fund (IMF)
#11
Which principle states that as the production of a good increases, the opportunity cost of producing an additional unit of that good also increases?
Law of diminishing returns
Law of increasing costs
Law of demand
Law of supply
#12
Which of the following is NOT a characteristic of monopolistic competition?
Many sellers
Product differentiation
Perfect information
Ease of entry and exit
#13
Which theory suggests that a country should specialize in producing goods where it has the lowest opportunity cost?
Comparative advantage theory
Absolute advantage theory
Heckscher-Ohlin theory
Mercantilism theory
#14
Which theory suggests that countries should export goods that require abundant factors of production and import goods that require scarce factors of production?
Absolute advantage theory
Comparative advantage theory
Heckscher-Ohlin theory
Ricardian theory
#15
What is the primary function of the World Bank?
Stabilize exchange rates
Promote free trade
Provide financial assistance for development projects
Set international monetary policy