Question 1

What is the primary purpose of the World Trade Organization (WTO)?

Accepted Answer

To promote and regulate international trade

Answer

To provide military alliances

Answer

To control immigration policies

Answer

To establish a common currency

Question 2

Which of the following is a benefit of free trade?

Accepted Answer

Increased economic growth

Answer

Lower quality of goods

Answer

Reduced competition

Answer

Higher tariffs on imports

Question 3

What is an import quota?

Accepted Answer

A limit on the quantity of a good that can be imported

Answer

A tax on exported goods

Answer

A government subsidy for local businesses

Answer

A type of international trade agreement

Question 4

What does 'tariff' refer to in the context of international trade?

Accepted Answer

A tax imposed on imported goods

Answer

A type of trade agreement

Answer

A limit on foreign investment

Answer

A subsidy for exporters

Question 5

What is a trade deficit?

Accepted Answer

When a country imports more goods than it exports

Answer

When trade balances are equal

Answer

When imports and exports are prohibited

Answer

When a country exports more than it imports

Question 6

What is the purpose of trade barriers?

Accepted Answer

To protect domestic industries from foreign competition

Answer

To promote international cooperation

Answer

To lower taxes on imports

Answer

To increase the number of foreign goods in the market

Question 7

Which of the following is a type of trade barrier that typically involves taxes placed on imported goods?

Accepted Answer

Tariff

Answer

Quota

Answer

Subsidy

Answer

Embargo

Question 8

What is the purpose of a trade embargo?

Accepted Answer

To restrict trade with a specific country

Answer

To lower import tariffs

Answer

To promote free trade

Answer

To increase trade flow

Question 9

Which of the following trade barriers limits the quantity of a good that can be imported?

Accepted Answer

Quota

Answer

Subsidy

Answer

Tariff

Answer

Trade Agreement

Question 10

What is a subsidy in the context of trade barriers?

Accepted Answer

A government payment to support a domestic industry

Answer

A restriction on exports

Answer

A limit on foreign investment

Answer

A tax on imports

Question 11

What is the primary effect of trade barriers on consumers?

Accepted Answer

Higher prices for imported goods

Answer

Lower prices for domestic products

Answer

Quicker access to foreign goods

Answer

More choices in the marketplace

Question 12

What is the main goal of implementing trade barriers?

Accepted Answer

To protect domestic industries

Answer

To increase global competition

Answer

To promote international trade

Answer

To lower the cost of imports

Question 13

Which trade barrier involves a fixed limit on the number of goods that can be imported during a specific time period?

Accepted Answer

Import quota

Answer

Import ban

Answer

Tariff

Answer

Subsidy

Question 14

Which of the following is an example of a trade barrier?

Accepted Answer

Tariff

Answer

Currency exchange

Answer

Diplomatic relations

Answer

Foreign aid

Question 15

What type of trade barrier is a complete ban on trade with a particular country?

Accepted Answer

Embargo

Answer

Tariff

Answer

Subsidy

Answer

Quota

Question 16

What is the effect of imposing high tariffs on imported goods?

Accepted Answer

It typically raises prices for consumers

Answer

It increases competition

Answer

It lowers the prices of domestic goods

Answer

It guarantees more exports

Question 17

What is the primary goal of implementing a trade embargo?

Accepted Answer

To exert economic pressure on a country

Answer

To reduce unemployment

Answer

To promote tourism

Answer

To increase agricultural exports

Question 18

What is the primary reason for fluctuations in exchange rates?

Accepted Answer

Changes in supply and demand for currencies

Answer

The number of languages spoken in a country

Answer

The size of a country's population

Answer

The color of the currency notes

Question 19

Which factor does NOT directly affect the exchange rate of a currency?

Accepted Answer

The country's official language

Answer

Inflation rates in the country

Answer

Political stability of the country

Answer

Interest rates in the country

Question 20

What does it mean when a country has a trade surplus?

Accepted Answer

It exports more than it imports

Answer

It imports more than it exports

Answer

It has a balanced exchange rate

Answer

It has no trade at all

Question 21

When a country's currency depreciates, what happens to its exports?

Accepted Answer

They become cheaper for foreign buyers

Answer

They are no longer available

Answer

They become more expensive for foreign buyers

Answer

They remain the same price

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