#1
Which of the following is an example of a tariff?
A subsidy provided to domestic producers
A quota on imported goods
A tax imposed on imported cars
A restriction on capital outflows
#2
What is the purpose of a trade quota?
To encourage imports
To restrict imports
To decrease export tariffs
To provide subsidies
#3
Which trade policy aims to eliminate all tariffs and trade barriers between participating countries?
Protectionism
Free trade
Import substitution
Mercantilism
#4
Which of the following is NOT a government intervention in international trade?
Tariffs
Subsidies
Embargoes
Multinational agreements
#5
What is the term for a situation where a country imposes trade barriers to protect its domestic industries?
Trade deficit
Trade surplus
Protectionism
Liberalization
#6
Which of the following is a consequence of imposing tariffs on imports?
Lower prices for domestic consumers
Increased competition in domestic markets
Reduced government revenue
Protection for domestic industries
#7
Which organization oversees international trade rules and agreements?
United Nations (UN)
World Trade Organization (WTO)
World Bank
International Monetary Fund (IMF)
#8
What is the 'most favored nation' principle in international trade?
A country extends its best trade terms to another country
A country limits trade with certain nations
A country imposes high tariffs on all imports
A country imposes trade quotas on select nations
#9
Which theory suggests that a country should specialize in producing goods it can produce most efficiently?
Absolute advantage
Comparative advantage
Opportunity cost
Heckscher-Ohlin theory
#10
Dumping in international trade refers to:
Exporting goods below their production cost
Imposing tariffs on imports
Regulating import quotas
Subsidizing domestic production
#11
What is the main objective of a countervailing duty?
To encourage imports
To subsidize exports
To offset foreign subsidies
To promote free trade
#12
Which of the following is an example of a non-tariff barrier to trade?
Import quotas
Value-added tax (VAT)
Ad valorem tariff
Dumping
#13
Which of the following is NOT a tool of trade policy?
Subsidies
Import quotas
Labor unions
Embargoes
#14
Which organization facilitates negotiations and agreements on international trade policies among member nations?
United Nations
World Bank
International Monetary Fund
World Trade Organization
#15
Which trade theory argues that government intervention can enhance a nation's competitiveness in certain industries?
Mercantilism
Comparative advantage
Strategic trade policy
Factor endowment theory
#16
Which trade theory suggests that countries will export goods that intensively use the factors of production they possess in abundance?
Absolute advantage
Comparative advantage
Factor endowment theory
Heckscher-Ohlin theory
#17
Which trade theory argues that nations should produce and export goods that require resources abundant in their country?
Heckscher-Ohlin theory
Comparative advantage
Factor endowment theory
Absolute advantage