#1
Which of the following is a benefit of international trade?
Increased specialization and efficiency
ExplanationEnhanced specialization leads to higher efficiency.
#2
What does GDP stand for in macroeconomics?
Gross Domestic Product
ExplanationGDP represents the total monetary value of goods and services produced within a country.
#3
Which international organization facilitates monetary cooperation and stability?
International Monetary Fund (IMF)
ExplanationThe IMF aids in maintaining global monetary stability.
#4
Which of the following is a goal of macroeconomic policy?
Stabilizing prices
ExplanationMaintaining price stability is crucial for economic stability.
#5
What is 'inflation' in macroeconomics?
An increase in the overall price level of goods and services
ExplanationIt denotes the general rise in the price level of goods and services.
#6
Which economic indicator measures the total market value of all final goods and services produced within a country in a given period?
Gross Domestic Product (GDP)
ExplanationGDP quantifies a nation's economic output within a specific time frame.
#7
Which of the following is an example of a trade barrier?
Tariff
ExplanationTariffs are taxes imposed on imported goods, restricting trade.
#8
What is the concept of 'absolute advantage' in international trade?
A country's ability to produce a good using fewer resources than another country
ExplanationIt denotes efficiency in production with fewer resources.
#9
What does the term 'protectionism' refer to in the context of international trade?
A policy of limiting trade to protect domestic industries
ExplanationIt aims to shield domestic industries from foreign competition.
#10
What is the 'trade deficit'?
When a country's imports exceed its exports
ExplanationIt signifies negative balance in trade, more imports than exports.
#11
What is the concept of 'comparative advantage' in international trade?
A country's ability to produce a good at a lower opportunity cost than another country
ExplanationIt refers to efficiency in production relative to other goods.
#12
What is the 'trade surplus'?
When a country's exports exceed its imports
ExplanationIt signifies positive balance in trade, more exports than imports.
#13
In macroeconomics, what is the 'balance of payments'?
A summary of a country's economic transactions with the rest of the world
ExplanationIt's a record of a nation's financial transactions globally.
#14
What does the 'Laffer Curve' illustrate in macroeconomics?
The relationship between tax rates and tax revenue
ExplanationIt demonstrates the effect of tax rates on tax revenue.
#15
What is the 'Phillips curve' in macroeconomics?
A graphical representation showing the inverse relationship between inflation and unemployment
ExplanationIt depicts the trade-off between inflation and unemployment rates.