This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Economics – Quiz 11 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Economics Quiz 11 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A country currently produces coffee and bread. If new technology was discovered that increased the production of coffee, how would the opportunity cost of bread be affected? A) It would decrease because more coffee could be produced instead. B) It would not be affected. C) It would increase because more coffee could be produced instead. D) None of above. Show Answer Correct Answer: C) It would increase because more coffee could be produced instead. 2. WTO stands for A) World Tariff Organisation. B) World Tax Organisation. C) World Trade Organisation. D) World Trademark Organisation. Show Answer Correct Answer: C) World Trade Organisation. 3. When a currency loses value in comparison to another country A) Appreciate. B) Depreciate. C) Protectionism. D) Unfavorable Balance of Trade. Show Answer Correct Answer: B) Depreciate. 4. International trade forces domestic firms to become more competitive in terms of A) The introduction of new products. B) Product design and quality. C) Product price. D) All of the above. Show Answer Correct Answer: D) All of the above. 5. The rate at which goods are exchanged between one another in the international market is called ..... A) The exchange rate. B) An absolute advantage. C) A comparative advantage. D) Term of trade. Show Answer Correct Answer: D) Term of trade. 6. The ..... Society is the creation of international trade A) Agricultural. B) Modern. C) Modern industrial. D) None of above. Show Answer Correct Answer: C) Modern industrial. 7. International trade is based on the idea that A) Exports should exceed imports. B) Imports should exceed exports. C) Resources are more mobile internationally than are goods. D) Resources are less mobile internationally than are goods . Show Answer Correct Answer: D) Resources are less mobile internationally than are goods . 8. Which economic system does the government make all economic decisions and owns most of the property-it is sometimes called communism? A) Traditional. B) Command. C) Market. D) Mixed. Show Answer Correct Answer: B) Command. 9. ..... is an increase in the value of a currency as measured by the amount of foreign currency it can buy. A) Specialization. B) Depreciation. C) Exchange rates. D) Appreciation. Show Answer Correct Answer: D) Appreciation. 10. What is a decrease in the value of a currency? A) Appreciation. B) Depreciation. C) Inflation. D) Absolute advantage. Show Answer Correct Answer: B) Depreciation. 11. Which of the following theories discusses the demand side? A) Adam Smith's theory of absolute advantage. B) Hexer Ohlin's business philosophy. C) Mill's theory of mutual demand. D) All. Show Answer Correct Answer: C) Mill's theory of mutual demand. 12. Who first investigated the Hexer-Ohlein theory? Who first tested the Hexer-Ohlein theory? A) Balasa (Balasa). B) McDougall (McDougall). C) Samuelson (Samuelson). D) Leontief (Leontief). Show Answer Correct Answer: D) Leontief (Leontief). 13. If the home country government grants a subsidy on a domestically produced good, domestic producers tend to: A) Capture the entire subsidy in the form of higher profits. B) Increase their level of production. C) Reduce wages paid to domestic workers. D) Consider the subsidy as an increase in production cost. Show Answer Correct Answer: B) Increase their level of production. 14. The ability of one person or nation to produce more of a good than another person or nation A) Comparative Advantage. B) Absolute advantage. C) Exports. D) Protectionism. Show Answer Correct Answer: B) Absolute advantage. 15. A rough measure of the economic relationship among nations, or their interdependence, is A) GDP. B) GDP per capita. C) Ratio of imports and exports to GDP. D) Ratio of imports and exports to GDP/capita. Show Answer Correct Answer: C) Ratio of imports and exports to GDP. 16. How many stars in the flags of Venezuela? A) 7. B) 8. C) 6. D) None of above. Show Answer Correct Answer: B) 8. 17. Specific tariffs are A) Imports taxes stated in ads industry publications. B) Import taxes calculated as a fixed charge for each unit of imported goods. C) The same as import quotas. D) Import taxes calculated as a fraction of the value of the imported good. Show Answer Correct Answer: B) Import taxes calculated as a fixed charge for each unit of imported goods. 18. Who advocated absolute cost advantage theory A) Adam Smith. B) David Ricardo. C) Ohlin. D) Samuelson. Show Answer Correct Answer: A) Adam Smith. 19. A quantitative limit imposed on imported goods is known as ..... A) Embargo. B) Tariff. C) Quota. D) Dumping. Show Answer Correct Answer: C) Quota. 20. The outsourcing of low-skilled service industry jobs (such as answering customer inquiries) from advanced countries to low-wage countries, such as India, reduces costs and prices in advanced countries. A) True. B) False. Show Answer Correct Answer: A) True. ← 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