#1
Which of the following is a key characteristic of a market economy?
Government control over production and distribution
Private ownership of resources and means of production
Equal distribution of wealth among citizens
Central planning of economic activities
#2
Which trade theory suggests that countries should specialize in producing goods for which they have the lowest opportunity cost?
Mercantilism
Comparative advantage
Absolute advantage
Protectionism
#3
What does the term 'dumping' refer to in international trade?
Exporting goods at prices lower than their production cost
Excessive packaging of products for international shipments
Trading goods without import/export licenses
Collaborative efforts to eliminate trade barriers
#4
Which economic concept refers to a situation where the prices of goods and services are rising, leading to a decrease in the purchasing power of a currency?
Inflation
Deflation
Recession
Stagflation
#5
Which international trade theory suggests that countries should focus on exporting goods they are relatively more efficient at producing?
Absolute advantage
Heckscher-Ohlin theory
Comparative advantage
New trade theory
#6
What is the main function of the World Trade Organization (WTO)?
Promoting environmental sustainability
Facilitating international trade negotiations
Providing humanitarian aid
Regulating global energy markets
#7
In the context of international business, what does FDI stand for?
Foreign Domestic Investment
Free Democratic Institutions
Foreign Direct Investment
Fiscal Development Index
#8
What is the role of the International Monetary Fund (IMF) in the global economy?
Promoting free trade agreements
Providing financial assistance to countries facing balance of payments problems
Regulating international labor standards
Managing global environmental policies
#9
In the context of foreign exchange, what does the term 'hedging' refer to?
Planting hedges around financial institutions
Reducing the risk of currency fluctuations
Promoting speculative trading
Implementing protectionist measures
#10
Which economic system is characterized by both private and government ownership of resources and means of production?
Capitalism
Socialism
Mixed economy
Communism
#11
What is the primary goal of a trade embargo imposed by one country against another?
Promoting diplomatic relations
Encouraging cultural exchange
Exerting economic pressure by restricting trade
Facilitating technological cooperation
#12
Which economic system emphasizes collective or government ownership of resources and central planning?
Capitalism
Socialism
Mixed economy
Market economy
#13
What is the purpose of a Letter of Credit (LC) in international trade?
To express goodwill between trading partners
To provide a line of credit to buyers
To facilitate secure payment between buyer and seller
To establish currency exchange rates
#14
What is the primary objective of the General Agreement on Tariffs and Trade (GATT)?
Promoting cultural exchange
Facilitating international tourism
Reducing trade barriers and tariffs
Ensuring global cybersecurity
#15
Which term refers to the legal protection granted to the creator of an original work, such as a book or invention?
Trademark
Patent
Copyright
Franchise
#16
In the context of international finance, what is the significance of the balance of payments?
Measuring the economic well-being of a country's citizens
Calculating the total government debt
Recording all financial transactions between a country and the rest of the world
Assessing the efficiency of a country's tax system
#17
What is the purpose of the Organization of the Petroleum Exporting Countries (OPEC)?
Promoting renewable energy sources
Regulating global oil prices
Facilitating international cultural exchange
Promoting fair trade practices