#1
Which organization facilitates international trade negotiations and agreements?
World Trade Organization (WTO)
ExplanationWTO facilitates international trade negotiations and agreements.
#2
What is the term used for a tax imposed on imported goods?
Tariff
ExplanationTariff is a tax imposed on imported goods.
#3
What is the term for the difference between a country's exports and imports of goods?
Trade deficit
ExplanationTrade deficit is the difference between a country's exports and imports of goods.
#4
Which of the following is NOT a determinant of a country's comparative advantage?
Government subsidies
ExplanationGovernment subsidies are not a determinant of a country's comparative advantage.
#5
Which of the following organizations aims to promote economic development by providing financial and technical assistance to developing countries?
World Bank
ExplanationWorld Bank aims to promote economic development through financial and technical assistance to developing countries.
#6
Which economic theory emphasizes that countries should specialize in producing goods they are most efficient at and then trade with others for goods they are less efficient at producing?
Comparative advantage
ExplanationComparative advantage theory advocates specialization in producing efficient goods and trading for less efficient ones.
#7
What is the term for an agreement between two or more countries to reduce or eliminate trade barriers between them?
Multilateral trade agreement
ExplanationA multilateral trade agreement is a pact between countries to reduce or eliminate trade barriers.
#8
What is the main purpose of a trade embargo?
To restrict or prohibit trade with a particular country
ExplanationA trade embargo's main purpose is to restrict or prohibit trade with a particular country.
#9
Which of the following is an example of a non-tariff barrier to trade?
Voluntary export restraint
ExplanationVoluntary export restraint is a non-tariff barrier to trade.
#10
Which of the following trade theories suggests that countries should protect their domestic industries through tariffs and quotas to promote economic growth?
Protectionism
ExplanationProtectionism suggests protecting domestic industries through tariffs and quotas for economic growth.
#11
Which of the following is NOT a characteristic of a free trade agreement (FTA)?
Imposition of quotas on imports
ExplanationFree trade agreements do not involve the imposition of quotas on imports.
#12
What is the term for a situation where a country intentionally sells its products abroad at a lower price than the domestic market?
Dumping
ExplanationDumping is when a country sells products abroad at a lower price than the domestic market.
#13
Which trade agreement aims to create a common market among its member states by eliminating tariffs and harmonizing regulations?
European Union (EU)
ExplanationEU aims to create a common market by eliminating tariffs and harmonizing regulations.
#14
What is the term for the practice of a country imposing restrictions on imports through regulations that favor domestic producers?
Protectionism
ExplanationProtectionism is the practice of imposing restrictions on imports through regulations favoring domestic producers.
#15
Which of the following is an example of a trade barrier that imposes additional costs on imported goods through taxes or levies?
Tariff
ExplanationTariff is a trade barrier imposing additional costs on imported goods through taxes or levies.