This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Economics – Quiz 10 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Economics Quiz 10 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What trade barrier prohibits the import/export of a product? A) Tariff. B) Standard. C) Subsidy. D) Embargo. Show Answer Correct Answer: D) Embargo. 2. This refers to the unrestricted flow of goods and services between countries. A) Free trade. B) Trade barriers. C) Trade bloc. D) Trade. Show Answer Correct Answer: A) Free trade. 3. Which of the following body is not related to the WTO? A) Dispute Settlement Body. B) Council of trade in goods. C) Exchange Rate Management Body. D) Trade Policy Review Body. Show Answer Correct Answer: C) Exchange Rate Management Body. 4. According to the Heckscher-Ohlin model A) Everyone automatically gains from trade. B) The gainers from trade outnumber the losers from trade. C) The scarce factor necessarily gains from trade. D) None of the above. Show Answer Correct Answer: B) The gainers from trade outnumber the losers from trade. 5. Which of the following is NOT a way to overcome deficits in the balance of payments? A) Price control. B) Devaluation. C) Export promotion. D) Government reserves. Show Answer Correct Answer: A) Price control. 6. Unprocessed goods' share in total world imports in a long-term ..... A) Rises. B) Declines. C) Stays the same. D) Depends on the flow of capital. Show Answer Correct Answer: B) Declines. 7. The goal of the North Atlantic Free Trade Agreement is to ..... trade barriers. A) Decrease. B) Increase. Show Answer Correct Answer: A) Decrease. 8. China's most favored nation trading status will be taken away if congress and the President agree that the Chinese Government is guilty of human rights abuses. All Chinese imports will experience a sharp increase in taxes if China is no longer considered a most favored nation. A) Tarriff. B) Quota. C) Embargo. D) Subsidies. Show Answer Correct Answer: A) Tarriff. 9. A number of scholars define globalization as a multidimensional group of social procedures. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 10. Which of the following is a part of the financial account? A) Inheritance taxes. B) Transactions in patents. C) Reserve assets. D) None of the above. Show Answer Correct Answer: C) Reserve assets. 11. Watches made in Norway are worn by people in California. A) Import. B) Export. Show Answer Correct Answer: A) Import. 12. Which one is wrong? Which one is wrong? A) Edgeworth box diagramEdgeworth box line. B) Priyabis Singar In the Vyapar Sharit, Dirdakalin Hass Prior to the Principal Singer Business Condition has lived in the long run. C) Edgeworth Customs Union Edgeworth Zakat Union. D) Jacob Wiener Customs UnionJacob Wiener Zakat Union. Show Answer Correct Answer: C) Edgeworth Customs Union Edgeworth Zakat Union. 13. The pattern of trade would be: A) U.S. exports wheat while UK exports cloth. B) U.S. exports cloth while UK exports wheat. C) Trade will not occur because U.K is disadvantaged in both goods. D) None of above. Show Answer Correct Answer: A) U.S. exports wheat while UK exports cloth. 14. The gains from international trade are closely related to: A) The labor theory of value. B) How much the autarky price differs from international terms of trade change. C) The fact that a country must lose from trade. D) All of the above. Show Answer Correct Answer: B) How much the autarky price differs from international terms of trade change. 15. Refers to the unrestricted flow of goods, services, and productive resources between countries A) Free trade. B) Balance of trade. C) Trade surplus. D) Trade deficit. Show Answer Correct Answer: A) Free trade. 16. Which of the following is not included in the current account balance? A) Net income. B) Current transfer. C) Financial account. D) Balance of goods and services. Show Answer Correct Answer: A) Net income. 17. An increase in United States imports will result in which of the following in foreign exchange markets? A) Increase foreign demand for United States dollars. B) Decreased supply of United States dollars. C) Increased United States demand for foreign currencies. D) A decrease in the value of foreign currencies. E) An increase in the value of the United States dollar. Show Answer Correct Answer: C) Increased United States demand for foreign currencies. 18. Which of the following would be MOST supportive of British tariffs? A) A US company hoping to export goods to Great Britain. B) A British company hoping to export goods to other countries. C) British consumers. D) British manufacturers who sell their products domestically. Show Answer Correct Answer: D) British manufacturers who sell their products domestically. 19. What countries are a part of the "USMCA" ? (Formly known as NAFTA) A) USA United Kingdom Mexico. B) Europe USA Canada UK. C) USA Canada Mexico. D) North America South America Greenland. Show Answer Correct Answer: C) USA Canada Mexico. 20. Heckscher-Ohlin theory is known as ..... A) Modern theory of international trade. B) Factor endowments theory of international trade. C) Both modern theory of international trade and factor endowments theory of international trade. D) Neither modern theory of international trade nor endowments theory of international trade. Show Answer Correct Answer: C) Both modern theory of international trade and factor endowments theory of international trade. ← PreviousNext →Related QuizzesEconomics QuizzesInternational Economics Quiz 1International Economics Quiz 2International Economics Quiz 3International Economics Quiz 4International Economics Quiz 5International Economics Quiz 6International Economics Quiz 7International Economics Quiz 8International Economics Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books