#1
Which of the following is not a macroeconomic factor affecting international trade?
Consumer preferences
ExplanationIt's a microeconomic factor.
#2
What does GDP stand for in the context of international trade?
Gross Domestic Product
ExplanationIt measures the economic output of a country.
#3
Which of the following is an example of a tariff barrier in international trade?
Value-added tax (VAT)
ExplanationIt's a form of indirect taxation on imports.
#4
What is the main purpose of the World Trade Organization (WTO)?
To facilitate trade negotiations and resolve disputes
ExplanationIt aims to promote and regulate global trade.
#5
What is the main objective of using trade barriers such as tariffs and quotas?
To protect domestic industries
ExplanationThey aim to shield local producers.
#6
Which of the following is a measure of a country's openness to trade?
Trade-to-GDP ratio
ExplanationIt shows the proportion of trade to the economy's size.
#7
The J-curve effect in international trade refers to:
A short-term increase in the trade deficit followed by a decrease
ExplanationIt depicts the impact of currency depreciation.
#8
Which economic theory suggests that a country should specialize in producing goods for which it has a comparative advantage?
Ricardian theory of comparative advantage
ExplanationIt emphasizes efficiency and specialization.
#9
What does the term 'Balance of Payments' refer to in international trade?
A record of all economic transactions between residents of a country and the rest of the world
ExplanationIt's a comprehensive record of financial flows.
#10
What is the term for a situation in which a country exports more goods and services than it imports?
Trade surplus
ExplanationIt signifies positive net exports.
#11
What is the concept of comparative advantage in international trade?
A country's ability to produce goods at a lower opportunity cost than another country
ExplanationIt guides specialization based on efficiency.
#12
Which of the following is not a component of aggregate demand?
Imports
ExplanationIt's an outflow component.
#13
What is the name of the principle that suggests that, under certain conditions, the prices of identical goods should be the same across different markets?
Law of one price
ExplanationIt implies price uniformity in efficient markets.
#14
Which of the following is a consequence of currency depreciation?
Decreased import prices
ExplanationIt makes imports relatively costlier.
#15
What does the term 'dumping' refer to in international trade?
Exporting goods at a price lower than their production cost
ExplanationIt can harm domestic producers.