#1
Which of the following is a key principle of international trade?
Autarky
Protectionism
Comparative advantage
Isolationism
#2
What is the main purpose of trade barriers such as tariffs and quotas?
To promote international cooperation
To reduce government revenue
To restrict imports and protect domestic industries
To encourage hyperinflation
#3
What is the 'Most Favored Nation' status in international trade?
A preferential trade agreement between two nations
A trade status that grants equal treatment to all trading partners
An exclusive trading bloc
A form of economic sanctions
#4
What is the Smoot-Hawley Tariff Act, enacted in 1930, known for?
Reducing trade barriers worldwide
Implementing a global currency system
Introducing protectionist measures and exacerbating the Great Depression
Promoting fair and free trade
#5
What is the primary purpose of the North American Free Trade Agreement (NAFTA)?
To establish a common currency for North American countries
To promote environmental conservation
To create a free trade zone among Canada, Mexico, and the United States
To regulate labor standards globally
#6
What is the primary purpose of the World Trade Organization (WTO)?
To regulate international currency exchange
To promote free and fair trade
To provide humanitarian aid
To control global energy resources
#7
In the context of international trade, what does the term 'dumping' refer to?
Exporting goods at a price lower than the domestic market
A method of waste disposal
The process of negotiating trade agreements
A form of economic sanctions
#8
Which international organization focuses on providing financial assistance to countries facing balance of payments problems?
International Monetary Fund (IMF)
World Bank
World Trade Organization (WTO)
United Nations (UN)
#9
What is the 'current account' in the balance of payments?
A record of government revenues and expenditures
A measure of a country's trade in goods and services
The balance between savings and investments
The value of a country's currency relative to others
#10
What is the primary function of the General Agreement on Tariffs and Trade (GATT)?
To provide military alliances between nations
To facilitate international communication
To promote global environmental sustainability
To reduce trade barriers and promote free trade
#11
Which economic indicator is used to measure the overall health of a country's economy?
Consumer Price Index (CPI)
Gross Domestic Product (GDP)
Producer Price Index (PPI)
Unemployment Rate
#12
Which term is used to describe a situation where a country exports more goods and services than it imports?
Trade deficit
Trade surplus
Current account deficit
Balance of payments surplus
#13
What is the 'balance of trade'?
The difference between a country's exports and imports of goods
The total value of a country's economic output
The exchange rate between two currencies
The amount of gold held by a country's central bank
#14
Which economic theory suggests that a nation should focus on industries where it has a comparative advantage?
Mercantilism
Keynesian economics
Classical liberalism
Heckscher-Ohlin theory
#15
Which trade theory suggests that similar nations will trade more with each other due to shared cultural, linguistic, and historical ties?
Gravity model
Absolute advantage
New trade theory
Linder hypothesis
#16
In the context of international trade, what is 'currency manipulation'?
A method to stabilize exchange rates
A strategy to increase interest rates
The intentional devaluation or appreciation of a currency
A form of fiscal policy
#17
What is the 'J-curve effect' in international trade?
A graphical representation of trade imbalances
The impact of trade policies on income distribution
A short-term worsening of the trade balance before improvement
The relationship between inflation and exchange rates
#18
In the context of trade negotiations, what does the term 'most-favored-nation clause' refer to?
A provision allowing nations to discriminate in trade relations
A commitment to treat a particular trading partner equally with others
A mechanism for resolving disputes in the World Trade Organization
A tariff rate quota system
#19
In the context of international trade, what is 'deindustrialization'?
The shift from an agrarian economy to an industrial one
The decline in the relative importance of the industrial sector in an economy
The process of industrial innovation
The establishment of trade unions in industrial sectors