#1
What does the term 'balance of trade' refer to?
The difference between exports and imports of goods only
The difference between exports and imports of goods and services
The difference between exports and imports of services only
The difference between total revenue and total expenditure
#2
Which of the following organizations regulates international trade and resolves disputes among member countries?
International Monetary Fund (IMF)
World Bank
World Trade Organization (WTO)
Organization for Economic Cooperation and Development (OECD)
#3
Which of the following is not a barrier to international trade?
Tariffs
Quotas
Free trade agreements
Subsidies
#4
Which of the following is not a benefit of international trade?
Economic specialization
Increased competition
Higher unemployment rates
Greater consumer choice
#5
What economic indicator measures the total value of a country's exports minus the total value of its imports?
Gross Domestic Product (GDP)
Net exports
Consumer Price Index (CPI)
Producer Price Index (PPI)
#6
Which of the following is not a factor affecting exchange rates?
Interest rates
Inflation rates
Government spending
Domestic savings
#7
Which of the following is a key determinant of comparative advantage in international trade?
Absolute advantage
Technology level
Resource endowment
Government intervention
#8
What is the main objective of imposing tariffs on imported goods?
To increase domestic consumption
To reduce the cost of imported goods
To protect domestic industries
To encourage international cooperation
#9
What does the term 'dumping' refer to in the context of international trade?
Selling goods in foreign markets at a price below production cost
Excessive government subsidies to domestic industries
Restrictive trade practices by multinational corporations
Setting tariffs higher than the agreed-upon rates
#10
What is the 'most-favored-nation' principle in trade agreements?
Granting a nation the lowest possible tariff rate for imports
Allowing a nation to impose tariffs on specific imports
Giving preferential treatment to certain trading partners
Imposing trade restrictions on specific nations
#11
What is a 'trade deficit'?
When a country exports more than it imports
When a country imports more than it exports
When a country's exports and imports are equal
When a country's currency appreciates
#12
What is the main purpose of the General Agreement on Tariffs and Trade (GATT)?
To promote free trade by reducing tariffs and trade barriers
To establish a global currency exchange rate system
To provide financial aid to developing countries
To regulate international labor standards
#13
What economic theory suggests that a country should specialize in producing goods where it has a comparative advantage and trade with other countries for goods it can't produce efficiently?
Mercantilism
Absolute advantage
Comparative advantage
Balanced trade
#14
In the context of international trade, what does 'devaluation' of a currency refer to?
A decrease in the value of a currency relative to other currencies
An increase in the value of a currency relative to other currencies
Elimination of exchange rate controls
A decrease in interest rates by the central bank