This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Economics – Quiz 17 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Economics Quiz 17 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What happens if a country does not follow the law of comparative advantage? A) The country will experience losses in international trade. B) The country will experience benefits in international trade. C) The country will experience an increase in the costs of producing goods or services. D) The country will experience a decrease in the cost of producing goods or services. E) The country will experience an increase in the cost of consuming goods or services. Show Answer Correct Answer: C) The country will experience an increase in the costs of producing goods or services. 2. A record of all transactions between the residents of a country and the residents of all other countries, over a period of time. A) Balance of payments. B) Export ledger. C) Import ledger. D) Net Export Account. Show Answer Correct Answer: A) Balance of payments. 3. A country's exports fall short of the value of its imports A) Trade Surplus. B) Trade Deficit. C) Absolute Advantage. D) Comparative Advantage. Show Answer Correct Answer: B) Trade Deficit. 4. A political and economic organization of 10 countries in Asia is often abbreviated to what term? A) NAFTA. B) EU. C) ASEAN. D) TRADERS. Show Answer Correct Answer: C) ASEAN. 5. Which country has a comparative advantage in wheat? A) U.S. B) U.K. Show Answer Correct Answer: A) U.S. 6. The income terms of trade concept was introduced by G.S.Dorrance A) True. B) False. Show Answer Correct Answer: A) True. 7. The SAPTA was unanimously enforced by all the member countries of the SAARC at the summit held ..... in 1995 A) New Delhi. B) Kathmandu. C) Male. D) Islamabad. Show Answer Correct Answer: A) New Delhi. 8. Who purposed Reciprocal Demand theory of International Trade A) Adam Smith. B) J M Keynes. C) J S Mill. D) David Ricardo. Show Answer Correct Answer: C) J S Mill. 9. What is the primary purpose NAFTA? A) To reduce trade barriers among the US, Canada, and Mexico. B) To reduce trade barriers among Central America and Mexico. C) To reduce trade barriers among Brazil and Mexico. D) To encourage free trade between the US, Europe, and Canada. Show Answer Correct Answer: A) To reduce trade barriers among the US, Canada, and Mexico. 10. Being an expert in one job, product, or service is called ..... A) Economic interdependence. B) Economic specialization. C) Opportunity cost. D) Scarcity. Show Answer Correct Answer: B) Economic specialization. 11. International trade is governed by monetary policy of one country A) True. B) False. Show Answer Correct Answer: B) False. 12. Suppose that there is a balance of trade in both the US and Canada. Then, the US dollar appreciates against the Canadian dollar. What would the likely outcome be? A) A trade deficit in both countries. B) A trade surplus in Canada. C) A trade surplus in the US. D) A trade deficit in Canada. Show Answer Correct Answer: C) A trade surplus in the US. 13. "International trade can be substitute for economic growth" ..... is the statement true? A) Yes. B) No. Show Answer Correct Answer: A) Yes. 14. The ability to produce more of a given product using a given amount of a resource. A) Absolute Advantage. B) Comparative Advantage. C) Positive Advantage. D) Negative Advantage. Show Answer Correct Answer: A) Absolute Advantage. 15. The benefits of international trade are derived from trade in A) Anything of value. B) Services but not goods. C) Tangible goods only. D) Goods but not services. E) Intangible goods only. Show Answer Correct Answer: A) Anything of value. 16. Those who benefit from the protectionism policy through tariff are ..... A) Users in a foreign country. B) Domestic users. C) Producers in foreign countries. D) Domestic producers. Show Answer Correct Answer: D) Domestic producers. 17. Which year was Automercados Plaza's (supermarket) founded? A) 1963. B) 1987. C) 1677. D) None of above. Show Answer Correct Answer: A) 1963. 18. Labor, human capital, entrepreneurship, natural resources, and capital are examples of which of the following? A) Absolute superiority. B) Factors of production. C) Business. D) Economy. Show Answer Correct Answer: B) Factors of production. 19. A limit on the quantity or the value of a commodity that can be brought into a country is called a(n): A) Tax Barrier. B) Tariff. C) Quality Control. D) Imoirt Quota. Show Answer Correct Answer: D) Imoirt Quota. 20. When a nation is skilled in the production of a commodity it is called..... When a country is skilled in the production of a commodity it is called..... A) Comparative AdvantageComparative Advantage. B) Full beneficial benefit. C) Absolute ProfitAbsolute Profit. D) None of these None of the given. Show Answer Correct Answer: C) Absolute ProfitAbsolute Profit. ← 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