#1
Which of the following is an example of a trade barrier?
Export subsidy
Free trade agreement
Tariff
Comparative advantage
#2
Which theory suggests that a country should specialize in the production of goods it can produce most efficiently?
Absolute advantage theory
Comparative advantage theory
Protectionism theory
Opportunity cost theory
#3
Which of the following is NOT a trade agreement?
#4
What is the main objective of a trade surplus?
To increase imports
To increase exports
To decrease domestic production
To decrease international competition
#5
Which of the following is an example of a non-tariff barrier to trade?
Import quota
Ad valorem tariff
Export subsidy
Dumping
#6
What does the term 'dumping' refer to in the context of international trade?
Exporting goods at a price lower than the production cost
Imposing import quotas
Implementing free trade policies
Signing bilateral trade agreements
#7
Which international organization facilitates trade negotiations and provides a forum for resolving trade disputes?
World Bank
World Trade Organization (WTO)
International Monetary Fund (IMF)
United Nations (UN)
#8
Which concept suggests that a country can benefit from trading even if it can produce all goods more efficiently than another country?
Mercantilism
Heckscher-Ohlin model
Gains from trade
Infant industry argument
#9
What is the primary function of a trade policy?
To regulate domestic employment
To ensure trade balance
To promote economic growth
To control inflation
#10
Which country is NOT a member of the North American Free Trade Agreement (NAFTA)?
Canada
Mexico
Brazil
United States
#11
What is the purpose of a trade embargo?
To promote free trade
To restrict trade with specific countries
To eliminate tariffs
To facilitate import subsidies
#12
What is the impact of a devaluation of a country's currency on its exports?
Exports decrease
Exports increase
No impact on exports
Exports become unpredictable
#13
Which trade theory suggests that countries will specialize in and export goods that utilize their abundant factors of production?
Mercantilism
Heckscher-Ohlin model
New trade theory
Strategic trade policy
#14
Which of the following is an example of a preferential trade agreement?
World Trade Organization (WTO)
North American Free Trade Agreement (NAFTA)
European Union (EU)
International Monetary Fund (IMF)
#15
Which trade theory suggests that countries can enhance their competitive advantage through government intervention and strategic trade policies?
Absolute advantage theory
Comparative advantage theory
Strategic trade theory
Factor endowment theory