#1
Which of the following is a key component of international trade?
Supply and demand
Price elasticity
Comparative advantage
Monopoly power
#2
Which of the following represents a country's current account balance?
Exports minus imports of goods and services
Investment income plus transfers
Foreign direct investment
Government spending on imports
#3
What is the purpose of a 'balance of payments'?
To ensure equal trade between nations
To measure the flow of goods and services between countries
To track all financial transactions between a country and the rest of the world
To regulate exchange rates in the international market
#4
What is the primary objective of trade liberalization?
To promote protectionism
To reduce government intervention in trade
To increase trade barriers
To encourage subsidies for domestic industries
#5
What is the term for the difference between a country's total exports and total imports?
Trade balance
Current account balance
Capital account balance
Financial account balance
#6
Which trade policy seeks to restrict the flow of certain goods or services into a country?
Trade liberalization
Protectionism
Free trade
Dumping
#7
What is a 'trade deficit'?
A situation where a country exports more than it imports
A situation where a country imports more than it exports
A situation where a country has a balanced trade
A situation where a country has no trade with other nations
#8
What is the primary goal of a trade embargo?
To increase international trade
To strengthen diplomatic relations
To limit or prohibit trade with a particular country
To encourage foreign investment
#9
What is the term for the total value of a country's exports minus the total value of its imports?
Trade balance
Current account balance
Balance of payments
Trade surplus
#10
What is the purpose of a 'trade agreement'?
To establish quotas on imports
To regulate currency exchange rates
To reduce or eliminate trade barriers between participating countries
To provide subsidies to domestic producers
#11
What is the term for a situation where a country exports more goods and services than it imports?
Trade deficit
Trade surplus
Current account balance
Balance of payments
#12
What does the term 'tariff' refer to in international trade?
A tax imposed on imports or exports
A restriction on the quantity of goods traded
A subsidy given to domestic producers
An agreement between nations to eliminate trade barriers
#13
Which international organization is primarily responsible for overseeing trade agreements?
World Trade Organization (WTO)
International Monetary Fund (IMF)
United Nations (UN)
Organization for Economic Cooperation and Development (OECD)
#14
What is the concept of 'dumping' in international trade?
Exporting goods below their production cost to gain market share
Imposing high tariffs on imports to protect domestic industries
Trading goods with neighboring countries without tariffs
The process of reducing trade barriers through negotiations
#15
Which of the following is a non-tariff barrier to trade?
Quotas
Embargoes
Subsidies
Dumping
#16
What is the main function of the International Monetary Fund (IMF) in the context of international trade?
Negotiating trade agreements between countries
Providing financial assistance to countries facing balance of payments problems
Setting international standards for product quality
Promoting regional economic integration
#17
Which economic theory suggests that countries should specialize in producing goods for which they have a comparative advantage?
Mercantilism
Protectionism
Comparative advantage
Absolute advantage
#18
Which organization primarily deals with trade disputes between member countries?
World Bank
International Monetary Fund
World Trade Organization
United Nations
#19
Which of the following is NOT a characteristic of free trade?
No trade barriers
Government subsidies for domestic industries
Voluntary exchange
Competitive markets
#20
What is the primary objective of the General Agreement on Tariffs and Trade (GATT)?
To reduce tariffs and trade barriers
To provide financial assistance to developing countries
To regulate exchange rates
To promote regional economic integration
#21
Which of the following is NOT a measure of protectionism?
Tariffs
Subsidies
Quotas
Dumping
#22
What is the J-curve effect in the context of a country's trade balance?
A rapid increase in imports followed by a gradual increase in exports
A temporary worsening of the trade balance before it improves after a currency depreciation
A situation where trade deficits persist despite currency devaluation
A long-term pattern of trade surplus followed by a sharp decline in exports
#23
Which of the following trade theories emphasizes the importance of economies of scale?
Absolute advantage
Comparative advantage
Heckscher-Ohlin model
New trade theory
#24
Which trade theory suggests that countries tend to export goods that intensively use factors of production that are locally abundant?
Absolute advantage
Comparative advantage
Heckscher-Ohlin model
New trade theory