#1
Which of the following best defines economic specialization?
Producing a wide range of goods and services domestically
Focusing on producing a limited range of goods or services
Exporting all goods produced domestically
Importing goods from multiple countries
#2
What does the term 'trade surplus' refer to?
When a country exports more goods than it imports
When a country imports more goods than it exports
When a country's total exports equal its total imports
When a country has a deficit in its balance of trade
#3
Which of the following is NOT a benefit of international trade?
Increased consumer choices
Lower prices for goods and services
Decreased economic growth
Access to new markets
#4
What is the 'invisible hand' concept in economics associated with?
John Maynard Keynes
Milton Friedman
Adam Smith
Karl Marx
#5
Which of the following is a characteristic of a free market economy?
Centralized planning by the government
Private ownership of resources
Equal distribution of income
Limited competition among firms
#6
What is comparative advantage in international trade?
When a country can produce a good using fewer resources than another country
When a country can produce all goods more efficiently than another country
When a country has absolute control over a particular resource
When a country has the highest GDP among all nations
#7
What theory suggests that countries should specialize in the production of goods in which they have a comparative advantage?
Absolute Advantage Theory
Comparative Advantage Theory
Mercantilism
Ricardian Model
#8
Which of the following is an example of absolute advantage?
Country A can produce 10 cars in the same time it takes Country B to produce 8 cars.
Country A can produce 10 cars using fewer workers than Country B.
Country A can produce cars and computers more efficiently than Country B.
Country A exports more goods than it imports.
#9
What is the main purpose of the World Trade Organization (WTO)?
To promote environmental sustainability worldwide
To regulate international currency exchange rates
To facilitate trade negotiations and resolve disputes
To provide humanitarian aid to developing countries
#10
What is the Smoot-Hawley Tariff Act known for?
Reducing trade barriers during the Great Depression
Imposing high tariffs on imported goods
Establishing the World Trade Organization
Promoting free trade agreements
#11
What is the term used to describe a situation where a country imposes restrictions on imports but allows the free flow of exports?
Import Quota
Tariff
Embargo
Export Subsidy
#12
Which of the following is an example of a non-tariff barrier to trade?
Import quota
Value-added tax (VAT)
Embargo
Export subsidy
#13
What is the term used to describe a government policy aimed at increasing exports and reducing imports?
Trade liberalization
Protectionism
Export-oriented industrialization
Bilateral trade agreement
#14
What is the term for a situation where a country deliberately undervalues its currency to make its exports cheaper and imports more expensive?
Currency appreciation
Currency depreciation
Currency manipulation
Exchange rate stabilization
#15
Which of the following is an example of a trade sanction?
Export promotion
Import quota
Free trade agreement
Arms embargo