#1
Which of the following is a benefit of international trade?
Increased competition leading to lower prices
Decreased variety of goods
Increased reliance on domestic production only
Limited access to resources
#2
What does the term 'trade deficit' refer to?
When a country exports more goods than it imports
When a country imports more goods than it exports
When a country's imports and exports are equal
When a country has no international trade
#3
What is a common consequence of tariffs on imported goods?
Increased consumer choices
Higher prices for imported goods
Lower government revenue
Decreased domestic production
#4
Which trade agreement created a free trade zone among Mexico, Canada, and the United States?
Trans-Pacific Partnership (TPP)
North American Free Trade Agreement (NAFTA)
European Union (EU)
South Asian Free Trade Area (SAFTA)
#5
What is the term for a limit placed on the quantity of a particular good that can be imported into a country during a specified period?
Tariff
Embargo
Quota
Subsidy
#6
Which organization facilitates international trade negotiations and dispute resolution?
World Bank
International Monetary Fund (IMF)
World Trade Organization (WTO)
United Nations (UN)
#7
What is the term for the difference between a country's exports and imports of goods?
Trade balance
Trade surplus
Trade barrier
Trade quota
#8
What is the main goal of protectionist trade policies?
To promote free trade
To reduce government intervention in trade
To protect domestic industries from foreign competition
To encourage globalization
#9
Which factor is NOT typically considered when analyzing the effects of international trade?
Labor productivity
Technological advancements
Climate change policies
Exchange rates
#10
What is the term for a tax imposed on goods imported into a country?
Subsidy
Quota
Tariff
Embargo
#11
Which economic theory suggests that a country should specialize in producing goods it can produce most efficiently while importing goods it produces less efficiently?
Comparative advantage
Absolute advantage
Mercantilism
Protectionism
#12
In which trade agreement does the European Union aim to create a single market among its member states?
ASEAN Free Trade Area (AFTA)
Common Market of the South (Mercosur)
European Economic Area (EEA)
European Union Customs Union
#13
Which trade theory suggests that trade is influenced by the differences in factor endowments between countries?
Heckscher-Ohlin model
Ricardian model
New Trade Theory
Porter's Diamond model