This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Economics – Quiz 20 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Economics Quiz 20 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The price of one nation's currency in terms of another nation's currency A) Exchange rate. B) Conversion percentage. C) Conversion protocol. D) Exchange percentage. Show Answer Correct Answer: A) Exchange rate. 2. The relationship between exchange rate and quantity foreign currency supply is ..... A) Negative. B) Positive. Show Answer Correct Answer: B) Positive. 3. Goods or services produced in the home country and sold in another country. A) Exports. B) Imports. C) Transports. D) Outgoers. Show Answer Correct Answer: A) Exports. 4. What is the last day of school? A) May 21st. B) May 22nd. C) May 23rd. D) May 24th. Show Answer Correct Answer: D) May 24th. 5. From April 2021, which new subsidiary did NPCI create to increase growth especially in the business to consumer segment for small businesses? A) NPCI International Payments Limited (NIPL). B) NPCI Bharat BillPay Limited (NBBL). C) Bharat Bill Payment System (BBPS). D) Indian Bank's Association (IBA). Show Answer Correct Answer: C) Bharat Bill Payment System (BBPS). 6. According to the Heckscher-Ohlin model, the source of comparative advantage is a country's: A) Technology. B) Advertising. C) Factor endowment. D) Both a and c. Show Answer Correct Answer: C) Factor endowment. 7. The most likely reason why some governments impose tariffs on imported goods is: A) To reduce the rate of inflation. B) To increase employment in foreign countries. C) To reduce the Balance of Payments. D) To increase output in their own countries. Show Answer Correct Answer: D) To increase output in their own countries. 8. The figure illustrates the international movement of capital. When there is no international movement of capital in both Nations, the yield for Nation 1's owners of noncapital factors is ..... A) CNEG. B) NEF. C) O1FGA. D) CFG. Show Answer Correct Answer: D) CFG. 9. The main benefits of free trade include A) Increased choice. lower prices and better quality. B) Less imports because they can't penetrate competitive markets. C) The more efficient sharing of the world's resources. D) Greater benefits for developing economies as they can trade more. Show Answer Correct Answer: A) Increased choice. lower prices and better quality. 10. If I am better at all types of production, I have the ..... in all forms of production. A) Comparative advantage. B) Specialization. C) Absolute advantage. D) Developed nation. Show Answer Correct Answer: C) Absolute advantage. 11. In most cases, tariffs and quotas harm consumers by causing A) Higher prices and fewer choices. B) Higher unemployment. C) Surplus and waste. D) Unexpected deflation. Show Answer Correct Answer: A) Higher prices and fewer choices. 12. Export means..... A) To get rid of the goods you don't need. B) Sending a product to another country for sale. C) To get more goods to be able to make more money. D) Bringing a product into a country to be sold. Show Answer Correct Answer: B) Sending a product to another country for sale. 13. Which is the Plurilateral agreement? A) ASEAN Free Trade Area (AFTA). B) United States-Mexico-Canada Agreement (USMCA). C) Information Technology Agreement. D) South Asian Free Trade Area (SAFTA). Show Answer Correct Answer: C) Information Technology Agreement. 14. An exchange rate is the number of units of: A) A nation's money that is equal to one unit of another nation's money. B) A nation's output that is equal to one unit of another nation's output. C) Gold backing a nation's money. D) None of these. Show Answer Correct Answer: A) A nation's money that is equal to one unit of another nation's money. 15. What is NPCI? A) National Payments Corporation of India. B) National Payments Corporation of Indonesia. Show Answer Correct Answer: A) National Payments Corporation of India. 16. Countries with different comparative advantages and specializations would ..... each country through trade. A) Benefit. B) Not Benefit. Show Answer Correct Answer: A) Benefit. 17. Country "G" can produce 20 hamburgers or 80 hot dogs. Country "H" can produce 14 hamburgers or 28 hot dogs. What is the opportunity cost for Country "G" to produce 1 hot dog? A) 4 hot dogs. B) 1/4 hot dogs. C) 4 hamburgers. D) 1/4 hamburger. Show Answer Correct Answer: D) 1/4 hamburger. 18. The lowering or elimination of protective tariffs and other trade barriers between two or more nations. A) Free Trade. B) Embargos. C) Trade Barriers. D) Foreign Exchange Rate. Show Answer Correct Answer: A) Free Trade. 19. A lower tariff on imported aluminum would most likely benefit: A) Foreign producers at the expense of domestic consumers. B) Domestic manufacturers of aluminum. C) Domestic consumers of aluminum. D) Workers in the domestic aluminum industry. Show Answer Correct Answer: C) Domestic consumers of aluminum. 20. The purpose of the protectionism policy in the international trade are listed below EXCEPT A) A country should not depend on another country produce security goods. B) The new industry is not ready to compete with the foreign firm. C) Creating goods relations between merchant countries. D) An increase in the value of currency will cause. Show Answer Correct Answer: C) Creating goods relations between merchant countries. ← 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