#1
Which of the following is an example of a tariff?
A tax imposed on imported cars
ExplanationTariff: Tax on imported goods
#2
What is the purpose of a trade quota?
To restrict imports
ExplanationTrade Quota: Limits on imported goods
#3
Which trade policy aims to eliminate all tariffs and trade barriers between participating countries?
Free trade
ExplanationFree Trade: No tariffs or barriers
#4
Which of the following is NOT a government intervention in international trade?
Multinational agreements
ExplanationMultinational Agreements: Not government intervention
#5
What is the term for a situation where a country imposes trade barriers to protect its domestic industries?
Protectionism
ExplanationProtectionism: Imposing trade barriers
#6
Which of the following is a consequence of imposing tariffs on imports?
Protection for domestic industries
ExplanationTariffs: Protect domestic industries
#7
Which organization oversees international trade rules and agreements?
World Trade Organization (WTO)
ExplanationWTO: Oversees international trade
#8
What is the 'most favored nation' principle in international trade?
A country extends its best trade terms to another country
ExplanationMost Favored Nation: Equal trade terms
#9
Which theory suggests that a country should specialize in producing goods it can produce most efficiently?
Comparative advantage
ExplanationComparative Advantage: Specialization in efficient production
#10
Dumping in international trade refers to:
Exporting goods below their production cost
ExplanationDumping: Selling below cost
#11
What is the main objective of a countervailing duty?
To offset foreign subsidies
ExplanationCountervailing Duty: Counters foreign subsidies
#12
Which of the following is an example of a non-tariff barrier to trade?
Import quotas
ExplanationNon-tariff Barrier: Import quotas
#13
Which of the following is NOT a tool of trade policy?
Labor unions
ExplanationLabor Unions: Not a trade policy tool
#14
Which organization facilitates negotiations and agreements on international trade policies among member nations?
World Trade Organization
ExplanationWTO: Facilitates trade agreements
#15
Which trade theory argues that government intervention can enhance a nation's competitiveness in certain industries?
Strategic trade policy
ExplanationStrategic Trade Policy: Government intervention for competitiveness
#16
Which trade theory suggests that countries will export goods that intensively use the factors of production they possess in abundance?
Heckscher-Ohlin theory
ExplanationHeckscher-Ohlin Theory: Factors of production determine exports
#17
Which trade theory argues that nations should produce and export goods that require resources abundant in their country?
Heckscher-Ohlin theory
ExplanationHeckscher-Ohlin Theory: Abundant resources determine exports