International Economics and Trade Quiz

Test your understanding of international economics with questions on trade theories, organizations, policies, and terms. How well do you know international trade?

#1

Which of the following is a commonly used measure of a country's economic output?

Gross National Happiness (GNH)
Gross Domestic Product (GDP)
Consumer Price Index (CPI)
Producer Price Index (PPI)
#2

Which organization facilitates international trade negotiations and sets rules for trade between nations?

United Nations (UN)
World Trade Organization (WTO)
International Monetary Fund (IMF)
World Bank (WB)
#3

What is the economic term for the difference between a country's exports and imports?

Trade surplus
Trade deficit
Balance of payments
Current account
#4

Which international organization provides financial assistance and technical support to developing countries?

United Nations (UN)
World Trade Organization (WTO)
International Monetary Fund (IMF)
World Bank (WB)
#5

What does FDI stand for in the context of international economics?

Foreign Direct Investment
Foreign Debt Index
Foreign Development Initiative
Foreign Dependency Index
#6

Which economic concept refers to the ability of a country to produce a good or service at a lower opportunity cost than another country?

Economies of scale
Comparative advantage
Absolute advantage
Marginal cost
#7

What is the term for a situation where a country's exports exceed its imports?

Trade deficit
Trade surplus
Balance of payments
Current account deficit
#8

Which theory suggests that countries should specialize in producing goods and services in which they have a comparative advantage?

Theory of Absolute Advantage
Theory of Comparative Advantage
Theory of Elasticity
Theory of Demand and Supply
#9

What is the economic term for a tax imposed on imported goods?

Excise Duty
Sales Tax
Value-Added Tax (VAT)
Tariff
#10

What is the name of the agreement that established the European Union's single market?

Maastricht Treaty
Schengen Agreement
Treaty of Lisbon
Treaty of Rome
#11

Which of the following is a strategy to reduce the adverse effects of exchange rate fluctuations on international trade?

Fixed exchange rate system
Flexible exchange rate system
Currency devaluation
Hedging
#12

Which trade theory suggests that factors of production, such as labor and capital, are immobile between countries?

Heckscher-Ohlin Model
New Trade Theory
Ricardian Model
Gravity Model
#13

Which trade policy involves the removal of barriers to trade between countries, such as tariffs and quotas?

Protectionism
Free trade
Dumping
Subsidization
#14

Which of the following is a regional trade agreement involving countries in North America?

ASEAN
NAFTA
EU
MERCOSUR
#15

Which trade theory emphasizes the role of economies of scale and imperfect competition in explaining international trade?

Heckscher-Ohlin Model
New Trade Theory
Ricardian Model
Gravity Model
#16

What is the name for the practice of selling goods in foreign markets at a price below their production cost or fair market value?

Dumping
Subsidization
Protectionism
Quota
#17

What is the term for the practice of artificially lowering the value of a country's currency to gain a competitive advantage in international trade?

Currency appreciation
Currency devaluation
Currency pegging
Currency revaluation
#18

Which international organization is responsible for setting accounting standards for countries worldwide?

International Monetary Fund (IMF)
World Bank (WB)
International Financial Reporting Standards (IFRS)
United Nations (UN)

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