#1
Which of the following is a characteristic of a command economy?
Centralized government control
ExplanationGovernment dictates economic decisions.
#2
Which economic system is primarily based on supply and demand?
Capitalism
ExplanationPrices and production are determined by market forces.
#3
Which economic system is characterized by the absence of government intervention?
Market economy
ExplanationMinimal government involvement in economic affairs.
#4
What is a trade deficit?
When a country's imports exceed its exports
ExplanationNegative balance in trade value.
#5
Which organization provides financial assistance and stability to countries experiencing economic crises?
International Monetary Fund (IMF)
ExplanationSupports monetary cooperation and stability.
#6
The 'invisible hand' concept is associated with which economist?
Adam Smith
ExplanationMarket self-regulation without central intervention.
#7
Which organization oversees international trade agreements?
World Trade Organization (WTO)
ExplanationPromotes global trade rules and resolves disputes.
#8
Which economic system advocates for the abolition of private property and a classless society?
Communism
ExplanationPublic ownership of means of production.
#9
What is comparative advantage in international trade?
When a country specializes in producing goods it can produce most efficiently
ExplanationEfficiency in resource allocation for trade benefit.
#10
Which international trade theory suggests that countries should specialize in producing goods they can produce most efficiently?
Theory of Comparative Advantage
ExplanationEfficiency-driven trade strategy.
#11
What is a tariff?
A tax on imports or exports
ExplanationImposed to restrict trade or raise revenue.
#12
The 'Laffer curve' is associated with which economic concept?
Supply-side economics
ExplanationTax rates and revenue relationship.
#13
What is the main function of the General Agreement on Tariffs and Trade (GATT)?
To negotiate and reduce tariffs
ExplanationPromotes international trade liberalization.
#14
Which economic theory advocates for minimal government intervention in the economy?
Austrian economics
ExplanationEmphasizes laissez-faire and free markets.