Free Trade Quiz

Who coined the famous expression 'the invisible hand' to describe the operation of a free market economy?

• Friedrich List

• David Ricardo

• Adam Smith

• John Maynard Keynes

Which economist is known for his defense of international free trade and theory of comparative advantage?

• Friedrich List

• David Ricardo

• John Maynard Keynes

• Adam Smith

What is the World Bank's initial function?

• Providing aid in the rebuilding of societies destroyed by the war

• Assisting the world’s developing nations

• Enforcing international trade rules

• Reducing tariffs and other obstacles to international trade

What is the main concern of economic nationalism?

• Promoting economic efficiency

• Protecting domestic industries from foreign competition

• Maximizing the wealth and power of a state

• Reducing trade barriers between nations

What is the main argument for free trade according to Adam Smith?

• Serving the interests of the larger community or nation

• Efficiency in resource allocation

• Maximizing the wealth and power of a state

• Promoting national interest

What is the main concern of the fair trade movement?

• Reciprocity in market openness

• Promoting economic efficiency

• Reducing tariffs and other obstacles to international trade

• Maximizing the wealth and power of a state

What is the main criticism of free trade according to Friedrich List?

• It distorts the market and promotes inefficiency

• It leads to an efficient economy

• It is based on voluntary consumer choices

• It serves the interests of the larger community or nation

What is the main concern of the liberal international economic order (LIEO)?

• Promoting economic efficiency

• Reducing trade barriers between nations

• Maximizing the wealth and power of a state

• Serving the interests of the larger community or nation

What is the main function of the International Monetary Fund?

• Providing aid in the rebuilding of societies destroyed by the war

• Enforcing international trade rules

• Stabilizing exchange rates and facilitating development

• Assisting the world’s developing nations

What is the main purpose of the General Agreement on Tariffs and Trade (GATT)?

• Reducing tariffs and other obstacles to international trade

• Promoting national interest

• Maximizing the wealth and power of a state

• Enforcing international trade rules