#1
Which of the following is a benefit of international trade?
Increased competition
Isolationism
Trade deficit
Closed economy
#2
What is the purpose of a trade surplus?
To promote economic growth
To increase unemployment
To discourage international trade
To reduce government spending
#3
What is the purpose of a trade barrier?
To promote free trade
To restrict or limit international trade
To encourage comparative advantage
To stabilize exchange rates
#4
What is the term for a situation where a country exports more goods than it imports?
Trade deficit
Trade surplus
Balance of payments
Current account deficit
#5
What is a trade deficit?
When a country exports more than it imports
When a country imports more than it exports
When there is a balance between exports and imports
When a country has no international trade
#6
What is the main function of the World Trade Organization (WTO)?
To regulate exchange rates
To facilitate international trade negotiations
To control monetary policy
To issue global currency
#7
In the context of exchange rates, what does 'appreciation' mean?
Increase in the value of one currency relative to another
Decrease in the value of a currency
Fixed exchange rate
No impact on exchange rates
#8
Which organization is responsible for issuing the world's primary reserve currency?
International Monetary Fund (IMF)
World Trade Organization (WTO)
World Bank
European Central Bank (ECB)
#9
Which exchange rate system involves a fixed exchange rate but allows for occasional adjustments?
Floating exchange rate
Pegged exchange rate
Managed float
Fixed exchange rate
#10
Which international trade agreement is known for reducing barriers to trade in goods and services?
#11
Which economic theory suggests that a country should specialize in producing goods and services that it can produce most efficiently?
Comparative advantage
Absolute advantage
Mercantilism
Protectionism
#12
What is a 'floating exchange rate'?
A system where exchange rates are fixed by the government
A system where exchange rates are determined by market forces
A system where there is no international trade
A system where exchange rates are controlled by the World Bank
#13
What is the significance of the Marshall-Lerner condition in international trade?
It determines the optimal tariff rate
It assesses the impact of exchange rate changes on trade balance
It regulates the flow of capital between countries
It establishes guidelines for customs valuation
#14
Which economic indicator reflects the total value of a country's exports minus the total value of its imports?
Trade balance
Gross Domestic Product (GDP)
Inflation rate
Consumer Price Index (CPI)
#15
What is the primary objective of the General Agreement on Tariffs and Trade (GATT)?
To regulate exchange rates
To promote international cooperation in monetary policy
To reduce barriers to international trade
To control inflation rates