This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Economics – Quiz 15 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Economics Quiz 15 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. There are 3 element in Balance of Payment as below except A) Overall balance. B) Capital and financial account. C) National income account. D) Current account. Show Answer Correct Answer: C) National income account. 2. Specialization is A) Dependence on others to get products you do not produce and needing to purchase items from them. B) Items purchased from other countries. C) Items sold to other countries. D) Producing specific goods and less goods faster, cheaper and better than others can. Show Answer Correct Answer: D) Producing specific goods and less goods faster, cheaper and better than others can. 3. The difference between a country's total exports and total imports A) Balance of Trade. B) Gross Trade Report. C) Gross Trade Accounting. D) Nominal Trade Account. Show Answer Correct Answer: A) Balance of Trade. 4. ..... trade is referred to as a trade that involves buying and selling of goods between two individuals or businesses located in two different countries or it can be trade between two different countries A) Internal. B) International. C) Inter-regional. D) Domestic. Show Answer Correct Answer: B) International. 5. The Heckscher-Ohlin theory explains comparative advantage as the result of differences in countries A) Economies of large-scale production. B) *b. Relative abundance of various resources. C) Relative costs of labor. D) Research and development expenditures. Show Answer Correct Answer: B) *b. Relative abundance of various resources. 6. Which of the following theories of international trade does not imply "full specialization" ? A) The theory of absolute superiority. B) The theory of comparative advantage. C) Heckscher Olin theory. D) Leontev paradoxes. Show Answer Correct Answer: C) Heckscher Olin theory. 7. A term that means there is not enough of something is ..... A) Supply. B) Economics. C) Scarcity. D) Enterprise. Show Answer Correct Answer: C) Scarcity. 8. Having comparative advantage means that a country can produce ..... A) Goods at a lower opportunity cost. B) More goods than another country. Show Answer Correct Answer: A) Goods at a lower opportunity cost. 9. Intra-industry trade cannot be explained by A) Imperfect competition model. B) Slicing up the value chain. C) Comparative advantage. D) Competitive advantage. Show Answer Correct Answer: D) Competitive advantage. 10. Harley-Davidson USA purchases $ 25 million in production machinery from a Japanese company. A) Current account. B) Capital/Financial account. Show Answer Correct Answer: A) Current account. 11. Which country does not have a floating exchange system A) Germany. B) Canada. C) Australia. D) Venezuela. Show Answer Correct Answer: D) Venezuela. 12. Importance of the study of International economicsSelect the wrong one A) Optimum use of resources. B) Growth and development. C) Greater choice for consumers. D) Currency minting. Show Answer Correct Answer: D) Currency minting. 13. Americans are free to manage their own ..... A) State. B) Property. C) Government. D) Laws. Show Answer Correct Answer: B) Property. 14. In an inflationary environment, then over time A) A specific tariff will tend to raise more revenue than an ad valorum tariff. B) An ad valorum tariff will tend to raise more revenue than an ad specific tariff. C) An optimum tariff will tend to raise more revenue than an escalating tariff. D) An escalating tariff will tend to raise more revenue than an optimum tariff. Show Answer Correct Answer: B) An ad valorum tariff will tend to raise more revenue than an ad specific tariff. 15. The use of trade barriers between nations to protect domestic industries. A) Proctoratism. B) Trade Wars. C) Embargo. D) Protective Tariff. Show Answer Correct Answer: A) Proctoratism. 16. What is the increase in the value of a currency? A) Exchange rate. B) Recession. C) Depreciation. D) Appreciation. Show Answer Correct Answer: D) Appreciation. 17. The largest amount of trade with the United States in recent years has been conducted by A) Canada. B) Germany. C) Mexico. D) Uk. Show Answer Correct Answer: A) Canada. 18. Any good transported from one country to another is called a(n) ..... A) Import. B) Export. C) Trade. D) Quota. Show Answer Correct Answer: B) Export. 19. These companies obtain resources from nature A) Primary sector. B) Secondary sector. C) Terciary sector. D) None of above. Show Answer Correct Answer: A) Primary sector. 20. If a country imposes an import tariff, its welfare can improve if A) The country is a small country rather than a larger country. B) Its terms of trade improve enough. C) The tariff enhances the welfare of its trading partners. D) Its government's tax revenue increases because of the tariff. Show Answer Correct Answer: B) Its terms of trade improve enough. ← 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