#1
Which of the following is an advantage of international trade?
Increased competition leading to lower prices
Decreased variety of goods and services
Reduced economic growth
Limited access to resources
#2
Which international organization facilitates global trade by negotiating and implementing trade agreements?
United Nations (UN)
International Monetary Fund (IMF)
World Trade Organization (WTO)
World Bank
#3
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 a surplus in its current account
When a country's currency appreciates
#4
What is the main purpose of a trade embargo?
To increase trade between nations
To promote diplomatic relations
To restrict or prohibit trade with a particular country
To encourage globalization
#5
What is the term for a tax imposed on imported goods?
Subsidy
Tariff
Quota
Dumping
#6
What is the term for an agreement between countries to reduce or eliminate trade barriers?
Trade deficit
Tariff
Free trade agreement
Embargo
#7
Which international organization sets rules for global trade and resolves disputes between member countries?
United Nations (UN)
World Bank
World Trade Organization (WTO)
International Monetary Fund (IMF)
#8
Which of the following is an example of a trade surplus?
Country A exports more goods than it imports
Country B imports more goods than it exports
Country C experiences a decrease in exports
Country D imposes tariffs on imported goods
#9
Which of the following is NOT a benefit of international trade?
Increased economic growth
Enhanced consumer choice
Reduced competition
Access to a wider range of resources
#10
Which of the following is a trade barrier?
Free trade agreement
Quota
Comparative advantage
Currency exchange rate
#11
What does 'comparative advantage' refer to in international trade?
A country's ability to produce a good or service at a lower opportunity cost than another country
The total output a country can produce
A country's ability to produce all goods and services efficiently
The ability of a country to produce more than it consumes
#12
Which of the following is NOT a barrier to international trade?
Tariffs
Quotas
Subsidies
Free trade agreements
#13
What is the balance of trade?
The difference between a country's imports and exports of goods and services
The total value of a country's exports
The total value of a country's imports
The difference between a country's savings and investments
#14
Which economic theory advocates for minimal government intervention in international trade?
Mercantilism
Keynesian economics
Protectionism
Free trade liberalism
#15
What is a trade barrier?
A government restriction that impedes trade
A tax levied on imports or exports
An international trade agreement
A type of currency exchange mechanism
#16
What is the main purpose of the General Agreement on Tariffs and Trade (GATT)?
To promote free trade and reduce trade barriers through negotiations
To regulate currency exchange rates
To provide financial assistance to developing countries
To impose tariffs on imported goods
#17
Which term describes a situation where a country's currency is deliberately devalued to make its exports cheaper?
Recession
Appreciation
Depreciation
Currency manipulation
#18
Which economic indicator measures the total value of a country's exports minus the total value of its imports?
Gross Domestic Product (GDP)
Consumer Price Index (CPI)
Trade balance
Inflation rate
#19
Which of the following is an example of non-tariff barriers to trade?
Import quotas
Value-added tax (VAT)
Excise duty
Income tax
#20
What does the term 'trade liberalization' refer to?
Imposing more restrictions on international trade
Reducing or removing trade barriers
Imposing higher tariffs on imported goods
Limiting the exchange of goods between nations
#21
What does the term 'dumping' mean in the context of international trade?
Selling goods in foreign markets at below their cost of production
Exporting recyclable materials
Trading goods between countries with similar economies
Reducing tariffs on imported goods
#22
What is the primary function of the World Trade Organization (WTO)?
To facilitate negotiations for free trade agreements
To provide financial aid to developing countries
To regulate currency exchange rates
To establish and enforce rules for international trade
#23
What does the term 'dumping' refer to in international trade?
Selling goods in a foreign market below their cost of production
Recycling waste materials
Selling goods at a high price
Trading goods between countries with similar economies
#24
What is the Smoot-Hawley Tariff Act known for?
Initiating free trade agreements
Imposing high tariffs leading to a decline in international trade during the Great Depression
Establishing the World Trade Organization
Promoting globalization
#25
What is the 'most favored nation' principle in international trade?
A country giving preferential treatment to certain trading partners
A policy of imposing tariffs on all imported goods
A system of preferential trade agreements
A commitment to treat all trading partners equally