This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Economics – Quiz 12 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Economics Quiz 12 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What trade barrier involves government payment to encourage/protect certain economic activity? A) Tariff. B) Standard. C) Subsidy. D) Embargo. Show Answer Correct Answer: C) Subsidy. 2. An argument that seeks to protect workers of a country from becoming unemployed due to competition from products made by workers in developing countries who usually work for much lower wages and benefits. A) Domestic Employment. B) National Security. C) Trading Bloc. D) Balance of Trade. Show Answer Correct Answer: A) Domestic Employment. 3. This occurs when the supply is low and the demand is high A) Natural Resource. B) Scarcity. C) Economics. D) Demand. Show Answer Correct Answer: B) Scarcity. 4. ..... is an inland port that will add a 324-mile freight rail service to connect the port of Savannah directly to a site north of Gainesville. A) Savannah River Port. B) Port of Savannah. C) Northeast Inland Port. D) Mississippi River Port. Show Answer Correct Answer: C) Northeast Inland Port. 5. Answer the following statement:You must have both time and labor to be Absolute advantage A) True. B) False. Show Answer Correct Answer: A) True. 6. Arguments for free trade are sometimes disregarded by politicians because: A) Maximizing domestic efficiency is not considered important. B) Maximizing consumer welfare may not be chief priority. C) There exist sound economic reasons for keeping one's economy isolated from other economies. D) Economists tend to favor highly protected domestic markets. Show Answer Correct Answer: B) Maximizing consumer welfare may not be chief priority. 7. An increase in domestic interested rates, relative to the world, leads to which of the following: A) An increase in demand for the domestic currency. B) A decrease in demand for the domestic currency. C) An increase in the supply of the domestic currency. D) A decrease in the supply of the domestic currency. Show Answer Correct Answer: A) An increase in demand for the domestic currency. 8. The name of the highest waterfall in the world? A) Angle. B) Victoria. C) Yosemite. D) None of above. Show Answer Correct Answer: A) Angle. 9. A combination of things that limit the flow of goods, services, and productive resources between countries A) Trade barriers. B) Trade Surplus. C) Trade deficit. D) Balance of trade. Show Answer Correct Answer: A) Trade barriers. 10. Economic theory: A) Seeks to explain the events. B) Seeks to forecast the events. C) Abstracts from many details that surround the economic event. D) All of above. Show Answer Correct Answer: D) All of above. 11. According to the theory of comparative advantage, which of the following is not a reason why countries trade? A) Costs are higher in one country than in another. B) Price is lower in one country than in another. C) The productivity of labour differs across countries and industries. D) Exports give a country a political advantage over other countries that export less. Show Answer Correct Answer: D) Exports give a country a political advantage over other countries that export less. 12. Government payments to a local supplier to reduce the supplier costs. This helps local businesses survive because it is getting direct aid from the government A) Balance of trade. B) Protectionism. C) Exchange rate. D) Subsidy. Show Answer Correct Answer: D) Subsidy. 13. When a country exports more than it imports A) Trade deficit. B) Trade surplus. C) Trade account. D) Balance of trade. Show Answer Correct Answer: B) Trade surplus. 14. A resource that can't be replaced in a short period of time A) Scarcity. B) Renewable Resource. C) Nonrenewable Resource. D) Economics. Show Answer Correct Answer: C) Nonrenewable Resource. 15. Monopolistic competition is associated with A) Cut-throat price competition. B) Product differentiation. C) Strategic interaction of firms. D) High profits margins. Show Answer Correct Answer: B) Product differentiation. 16. According to the direction of movement, the goods are divided into duties A) To ad valorem, specific and combined duties. B) To preferential or discriminatory duties. C) To countervailing, anti-dumping and retaliatory duties. D) Import, export and transit duties. Show Answer Correct Answer: D) Import, export and transit duties. 17. Current account in the Malaysian Balance of Payment (BOP) contains ..... A) Receipts and payments on goods and services. B) Receipts on goods and services. C) Payments on goods and services. D) Receipts and payments on goods. Show Answer Correct Answer: D) Receipts and payments on goods. 18. What are tariffs? A) Political boundaries between nations. B) Military blockades of specific countries. C) Disputes between state governments over boundaries. D) Taxes on the import or export of goods from a country. Show Answer Correct Answer: D) Taxes on the import or export of goods from a country. 19. NAFTA caused trade barriers to be reduced resulting in- A) Surge in immigration. B) Decline in factory production. C) Decrease in price of goods. D) Rise in taxes on products. Show Answer Correct Answer: C) Decrease in price of goods. 20. What is a currency system in which each country tries to keep the value of its currency constant against one another called? A) Fixed exchange rate. B) Flexible exchange rate. C) Floating currency exchange. D) Constant pricing. Show Answer Correct Answer: A) Fixed exchange rate. ← 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