International Trade

Which of the following is NOT a feature of free trade?

• Protectionism

• Trade specialization

• Increase in world output

• Comparative cost advantage

The total value of goods imported minus the total value of goods exported is referred to as

• Balance of trade

• total currency flow

• balance of payments

• current account balance

A quota can BEST be described as

• a ban on the sale of goods

• a license given to import goods

• a external tariff amoung countries

• a restricted on the quantity imported

Inflation can BEST be described as:

• fluctuations in the general price level

• a general and sustained rise in the level of prices

• a fall in the level of prices of goods and services

• changes in the level of prices of goods and services

To correct an adverse balance of payments, a government may

• reduce credits

• increase exports

• reduce import tax

• increase the money supply

A country has a favourable balance of trade when

• it sells more than it buys

• it buys more than it sells

• imported goods are cheaper

• there are no restrictions to trade

The difference between the value of a country's visible and invisible exports and the value of its visible and invisible imports is referred to as the

• balance of trade

• per capita income

• balance of payments

• gross national product

Which of the following methods is NOT used to measure a country's national income?

• Income

• Output

• Accounting

• Expenditure

The increase in skills and abilities as a result of education and training is referred to as

• Economic Growth

• economic development

• technological competency

• human resource development

Visible trade examines the difference between a country's

• imports and exports of services only

• imports and exports of goods only

• current account and capital account

• output method and expediture method