#1
Which of the following is a characteristic of a command economy?
Private ownership of production
Centralized government control
Market-driven allocation of resources
Profit motive determines production
#2
Which economic system is primarily based on supply and demand?
Capitalism
Socialism
Communism
Feudalism
#3
Which economic system is characterized by the absence of government intervention?
Market economy
Mixed economy
Command economy
Planned economy
#4
What is a trade deficit?
When a country's exports exceed its imports
When a country's imports exceed its exports
When a country has no trade partners
When a country's currency is strong
#5
Which organization provides financial assistance and stability to countries experiencing economic crises?
World Health Organization (WHO)
International Monetary Fund (IMF)
World Trade Organization (WTO)
United Nations Educational, Scientific and Cultural Organization (UNESCO)
#6
What is protectionism?
A policy of promoting free trade between nations
A policy of reducing government intervention in the economy
A policy of restricting imports through tariffs and quotas
A policy of promoting international cooperation
#7
What is a free trade agreement (FTA)?
An agreement to reduce or eliminate trade barriers between participating countries
A tax on imports or exports
A subsidy given to domestic producers
An agreement to restrict the quantity of imports
#8
Which economic theory suggests that government spending should be used to stimulate demand during economic downturns?
Monetarism
Keynesian economics
Supply-side economics
Austrian economics
#9
Which of the following is a characteristic of a market economy?
Central planning by the government
Private ownership of the means of production
Equal distribution of wealth
Absence of competition
#10
The 'invisible hand' concept is associated with which economist?
Adam Smith
Karl Marx
John Maynard Keynes
Milton Friedman
#11
Which organization oversees international trade agreements?
World Health Organization (WHO)
International Monetary Fund (IMF)
World Trade Organization (WTO)
United Nations Educational, Scientific and Cultural Organization (UNESCO)
#12
Which economic system advocates for the abolition of private property and a classless society?
Capitalism
Socialism
Communism
Mercantilism
#13
What is comparative advantage in international trade?
When a country can produce more of a good with fewer resources than another country
When a country specializes in producing goods it can produce most efficiently
When a country has an absolute advantage in all goods
When a country imports more than it exports
#14
Which international trade theory suggests that countries should specialize in producing goods they can produce most efficiently?
Theory of Absolute Advantage
Theory of Comparative Advantage
Theory of Factor Proportions
Theory of Mercantilism
#15
What is a quota in international trade?
A tax on imports or exports
A limit on the quantity of a good that can be imported or exported
An agreement to eliminate trade barriers
A currency exchange mechanism
#16
Which economic system advocates for both private ownership of the means of production and government intervention in the economy?
Capitalism
Socialism
Communism
Mixed economy
#17
What is dumping in the context of international trade?
Selling goods in a foreign market at a price below production cost
Exporting goods with high tariffs
Bilateral trade agreement
Currency devaluation
#18
Which international trade theory suggests that countries will export goods that intensively use factors of production they have in abundance?
Theory of Absolute Advantage
Theory of Comparative Advantage
Heckscher-Ohlin Theory
Theory of Mercantilism
#19
What is the primary objective of a trade embargo?
To encourage international trade
To limit the importation of certain goods from specific countries
To promote cultural exchange
To establish diplomatic relations
#20
Which organization is responsible for issuing a country's currency?
International Monetary Fund (IMF)
World Bank
Central bank
World Trade Organization (WTO)
#21
What is the primary purpose of foreign direct investment (FDI)?
To increase imports
To promote domestic production
To encourage international trade agreements
To acquire ownership in a foreign company
#22
What is a tariff?
A tax on imports or exports
A subsidy given to domestic producers
An agreement to eliminate trade barriers
A currency exchange mechanism
#23
The 'Laffer curve' is associated with which economic concept?
Monetary policy
Fiscal policy
Supply-side economics
Keynesian economics
#24
What is the main function of the General Agreement on Tariffs and Trade (GATT)?
To regulate currency exchange rates
To promote environmental sustainability
To negotiate and reduce tariffs
To provide humanitarian aid
#25
Which economic theory advocates for minimal government intervention in the economy?
Socialism
Keynesian economics
Monetarism
Austrian economics