International Trade and Economic Efficiency Quiz

Test your understanding of international trade with these questions on barriers, benefits, and economic theories. See how well you know trade agreements and terms!

#1

Which of the following is a barrier to international trade?

Tariffs
Comparative advantage
Free trade agreements
Specialization
1 answered
#2

What does GDP stand for?

Gross Domestic Product
General Development Policy
Global Demand Prediction
Gross Domestic Price
1 answered
#3

Which organization sets the rules for international trade?

United Nations
World Trade Organization
International Monetary Fund
World Bank
1 answered
#4

What is a trade surplus?

When a country imports more than it exports
When a country exports more than it imports
When a country has equal imports and exports
When a country stops all imports and exports
1 answered
#5

What is the term for a tax imposed on imports?

Subsidy
Excise tax
Tariff
VAT (Value Added Tax)
1 answered
#6

Which economic theory advocates for government intervention in trade to protect domestic industries?

Free trade
Comparative advantage
Protectionism
Globalization
1 answered
#7

Which of the following is a benefit of international trade?

Increased competition
Reduced specialization
Limited market access
Higher prices for consumers
1 answered
#8

What is a trade deficit?

When a country exports more than it imports
When a country imports more than it exports
When a country has equal imports and exports
When a country stops all imports and exports
1 answered
#9

Which of the following is an example of a non-tariff barrier to trade?

Import quotas
Free trade agreements
Customs duties
Trade liberalization
1 answered
#10

What is the main purpose of a trade agreement?

To increase trade barriers
To promote international cooperation
To restrict imports
To discourage specialization
1 answered
#11

What does NAFTA stand for?

North Atlantic Free Trade Agreement
National Association of Free Trade Advocates
North American Free Trade Agreement
New Agreement for Trade Association
1 answered
#12

Which term refers to the difference between a country's exports and imports?

Balance of payments
Trade deficit
Current account
Trade surplus
1 answered
#13

Which economic theory suggests that a nation should specialize in the production of goods and services that it can produce most efficiently?

Mercantilism
Protectionism
Comparative advantage
Absolute advantage
1 answered
#14

Which factor does NOT typically influence comparative advantage?

Technology
Natural resources
Labor force
Government regulations
1 answered
#15

What is the term for the practice of selling goods abroad at a price below their cost of production?

Dumping
Export subsidy
Tariff
Quota
1 answered
#16

Which international organization is responsible for promoting economic cooperation and development among member countries?

World Trade Organization (WTO)
International Monetary Fund (IMF)
Organization for Economic Cooperation and Development (OECD)
European Union (EU)
1 answered
#17

Which of the following is NOT a reason why countries engage in international trade?

To access goods and services unavailable domestically
To lower prices for consumers
To minimize economic growth
To gain access to new markets
1 answered

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