#1
Which of the following is a basic principle of international trade?
Autarky
Protectionism
Comparative Advantage
Barter System
#2
What is the meaning of the term 'Trade Surplus' in international trade?
When a country exports more goods than it imports
When a country imports more goods than it exports
When a country's exports and imports are equal
When a country has a budget surplus
#3
What is the primary purpose of the 'Most Favored Nation' (MFN) status in international trade?
To promote protectionism
To encourage fair trade practices
To grant special privileges to a specific country
To ensure equal treatment for all trading partners
#4
What is the primary purpose of the 'Doha Development Round' in the World Trade Organization (WTO)?
Promoting protectionism
Addressing issues related to developing countries
Establishing a new global currency
Eliminating trade barriers
#5
What is the 'Infant Industry Argument' in the context of international trade?
A theory supporting free trade without government intervention
An argument favoring protectionism to nurture emerging industries
A strategy for eliminating trade deficits
A theory emphasizing the importance of comparative advantage
#6
What does the term 'Balance of Trade' refer to in international economics?
The total value of a country's exports minus its imports
The exchange rate between two currencies
The total GDP of a country
The unemployment rate in a country
#7
Which international trade theory argues that countries should specialize in the production of goods in which they have an absolute advantage?
Mercantilism
Heckscher-Ohlin Theory
Absolute Advantage Theory
Comparative Advantage Theory
#8
Which international organization is responsible for providing financial assistance to countries facing balance of payments problems?
World Bank
International Monetary Fund (IMF)
World Trade Organization (WTO)
Asian Development Bank
#9
What is the 'Law of Comparative Advantage' in international trade?
Countries should produce what they are most efficient at producing
Countries should focus on absolute advantage only
Countries should limit trade to protect domestic industries
Countries should avoid specialization
#10
What is the 'Ricardian Model' in the context of international trade?
A model explaining the impact of exchange rates on trade
A theory of comparative advantage
A framework for international financial regulation
A strategy for tariff negotiations
#11
Which term refers to a situation where a country can produce a good with fewer resources than another country?
Absolute Advantage
Comparative Advantage
Opportunity Cost
Trade Deficit
#12
What is the main goal of the World Trade Organization (WTO)?
Promoting protectionism
Facilitating international trade negotiations
Eliminating competition
Controlling global currency exchange rates
#13
In the context of international trade, what does the term 'Dumping' refer to?
Selling goods in foreign markets at a price lower than the production cost
Trading goods without government regulations
Promoting fair competition
Eliminating import tariffs
#14
In the context of international trade, what is 'Tariff'?
A tax imposed on imports and exports
A restriction on the quantity of goods traded
A subsidy given to domestic producers
A bilateral trade agreement
#15
According to the Heckscher-Ohlin Theory, what determines a country's comparative advantage in production?
Labor intensity of production
Geographical location
Government intervention
Consumer preferences
#16
What is the 'Trade-to-GDP Ratio' used to measure in the context of international economics?
Inflation rate
Economic growth
Openness of an economy to international trade
Income distribution
#17
Which international trade theory emphasizes the role of factor endowments in determining comparative advantage?
Mercantilism
Absolute Advantage Theory
Heckscher-Ohlin Theory
Comparative Advantage Theory