#1
Which of the following is NOT a benefit of international trade?
Increased variety of goods and services
Lower prices for consumers
Decreased competition
Economic growth through specialization
#2
What is the term for the total value of all goods and services produced by a country in a given time period?
Gross Domestic Product (GDP)
Balance of Trade
Consumer Price Index (CPI)
Inflation Rate
#3
What is the term for the difference between a country's total exports and total imports?
Balance of payments
Current account balance
Capital account balance
Trade deficit
#4
What is the term for a situation where a country's currency becomes less valuable relative to other currencies over time?
Depreciation
Appreciation
Revaluation
Devaluation
#5
What is the primary purpose of using trade barriers such as tariffs and quotas?
To promote international cooperation
To reduce government revenue
To protect domestic industries from foreign competition
To encourage free trade
#6
What is the term for a situation where a country's imports exceed its exports?
Trade surplus
Current account deficit
Capital account surplus
Trade deficit
#7
Which exchange rate system allows the value of a currency to be determined solely by the forces of supply and demand?
Fixed exchange rate
Pegged exchange rate
Managed float exchange rate
Flexible exchange rate
#8
What is the theory that suggests exchange rates between currencies are in equilibrium when their purchasing power is the same in each of the two countries?
Interest rate parity
Purchasing power parity
The Mundell-Fleming model
The impossible trinity
#9
What does the term 'balance of payments' refer to in international economics?
The difference between a country's exports and imports
The total value of goods and services produced by a country
A record of all transactions between residents of one country and the rest of the world
The exchange rate between two currencies
#10
Which organization acts as a lender of last resort for countries facing balance of payments problems?
World Trade Organization (WTO)
International Monetary Fund (IMF)
World Bank
Organisation for Economic Co-operation and Development (OECD)
#11
Which exchange rate regime involves a government or central bank actively managing the value of its currency relative to other currencies?
Fixed exchange rate
Floating exchange rate
Managed float exchange rate
Pegged exchange rate
#12
What is the main purpose of the International Monetary Fund (IMF)?
To promote international trade agreements
To stabilize exchange rates and assist in the reconstruction of the international payment system
To provide loans for infrastructure development in developing countries
To regulate global financial markets
#13
Which of the following is an example of a capital control?
Tariffs on imported goods
Subsidies to domestic producers
Restrictions on foreign investment
Expansionary monetary policy
#14
Under a gold standard system, what is the main determinant of the value of a country's currency?
Domestic interest rates
The country's balance of payments
The amount of gold reserves held by the central bank
Government fiscal policy
#15
What is the term for a situation where a country's government sells its own currency and buys foreign currency to increase the value of its currency relative to other currencies?
Depreciation
Revaluation
Devaluation
Intervention
#16
What is the term for a situation where a country's government sells its own currency and buys foreign currency to decrease the value of its currency relative to other currencies?
Depreciation
Revaluation
Devaluation
Intervention