Miscellaneous Economic MCQs

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

A) Free trade agreements

B) Quotas on imported goods

C) Removal of tariffs

D) Increased foreign direct investment

The balance of payments includes:

A) Only the trade balance (exports minus imports)

B) Current account, capital account, and financial account

C) Government budget deficit

D) Exchange rate fluctuations

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

A) To promote free trade and resolve trade disputes

B) To restrict international trade and impose tariffs

C) To regulate domestic monetary policy

D) To control immigration and labor movement

Which theory suggests that countries should specialize in producing goods where they have a comparative advantage?

A) Mercantilism

B) Absolute advantage

C) Comparative advantage

D) Protectionism

What is the main function of the International Monetary Fund (IMF)?

A) To promote international trade agreements

B) To provide financial assistance and stabilize exchange rates

C) To regulate global environmental policies

D) To facilitate labor migration between countries

The Human Development Index (HDI) measures:

A) Economic growth rates in developing countries

B) Quality of life based on education, income, and life expectancy

C) Income inequality within a country

D) Industrial output and exports

Which of the following is NOT a Millennium Development Goal (MDG)?

A) Eradicate extreme poverty and hunger

B) Achieve universal primary education

C) Combat HIV/AIDS, malaria, and other diseases

D) Increase military spending in developing countries

The Harrod-Domar model focuses on the relationship between:

A) Population growth and technological progress

B) Savings, investment, and economic growth

C) Fiscal policy and government spending

D) Trade deficits and exchange rates

Which strategy emphasizes the importance of inward-focused economic policies to promote development?

A) Import substitution industrialization (ISI)

B) Export-oriented industrialization (EOI)

C) Structural adjustment programs (SAPs)

D) Multinational corporation (MNC) investment

What is a key challenge faced by developing countries in achieving sustainable development?

A) Lack of natural resources

B) High population growth rates

C) Overdependence on foreign aid

D) Limited access to technology and education