This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Economics – Quiz 23 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Economics Quiz 23 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. All the following are benefits of protectionism, EXCEPT: A) Protection of domestic jobs. B) National security. C) Protection of infant industries. D) Cheaper prices for consumers. Show Answer Correct Answer: D) Cheaper prices for consumers. 2. The NFS became the smallest network of shared ATMs in India. A) True. B) False. Show Answer Correct Answer: B) False. 3. Consumer surplus in a market for a good exists because: A) Some producers charge different prices for the good in different markets. B) Producers don't have the ability to set their own price. C) When the price of goods decrease, most consumers buy more. D) Some consumers are willing to pay more than the equilibrium price. Show Answer Correct Answer: D) Some consumers are willing to pay more than the equilibrium price. 4. The reason international trade is controlled has to do with how economics relates to: A) Politics. B) Biology. C) Chance Factors. D) Invention. Show Answer Correct Answer: A) Politics. 5. Why does the US have restricted trade to Cuba A) Cuba's communist government. B) Failed protection of human rights. C) All the above. D) None of above. Show Answer Correct Answer: C) All the above. 6. A limit to the number of imports that may enter a country A) Tariff. B) Embargo. C) Demand. D) Quota. Show Answer Correct Answer: D) Quota. 7. The figure illustrates the international movement of capital. What is the correct statment the welfare effects of this movement? A) In Home country, total productincreases, capital owners gain, and non-capital owners lose. B) In Host country, total productincreases, capital owners lose, and non-capital owners gain. C) In Host country, total productdecreases, capital owners lose, and non-capital owners gain. D) A&B are correct. E) A&C are correct. Show Answer Correct Answer: D) A&B are correct. 8. ..... is the precursor of WTO A) NAFTA. B) GATT. C) SAARC. D) EC. Show Answer Correct Answer: B) GATT. 9. What type of exchange rate system do most countries operate under? A) Flexible. B) Floating. C) Fictitious. D) Fixed. Show Answer Correct Answer: B) Floating. 10. Ricardo describes trade taking place as a result of countries having ..... in production of particular goods, relative to each other. A) Absolute advantage. B) Comparative advantage. C) Both absolute and comparative advantage. D) Neither absolute nor comparative advantage. Show Answer Correct Answer: B) Comparative advantage. 11. Increased exports can be attributed to a ..... dollar. A) Strong. B) Weak. Show Answer Correct Answer: B) Weak. 12. Comparative advantage suggests that countries will engage in trade with one another, exporting the goods that they have a ..... advantage in. A) Relative. B) Comparative. C) Relative or comparative. D) Absolute or relative. Show Answer Correct Answer: C) Relative or comparative. 13. Assume the exchange rate of US dollars to Indian Rupees changes from $ 1=500 Rupees to $ 1=200 Rupees. Which group will be helped by this change? A) US exporters of US goods to India. B) Indian manufacturing firms. C) Indian citizens holding US dollars. D) US importers of Indian goods. Show Answer Correct Answer: A) US exporters of US goods to India. 14. Requirements a good must meet before it can enter the country as an import A) Standards. B) Currency Depreciation. C) Trade Surplus. D) Absolute Advantage. Show Answer Correct Answer: A) Standards. 15. A government payment that supports a business or market. A) Tariff. B) Standards. C) Embargo. D) Subsidy. Show Answer Correct Answer: D) Subsidy. 16. The figure illustrates the international movement of capital. When there is international movement of capital in both Nations, what is the repatriation to Nation 1? A) O2JERA. B) ABER. C) ERM. D) ERG. Show Answer Correct Answer: B) ABER. 17. An agreement effective July 1, 2020, between American and its immediate neighbors to the north and south that increases environmental and labor regulations, protects intellectual property, and incentivizes more domestic production of cars and trucks. A) USMCA. B) NAFTA. C) NACTA. D) ANAC. Show Answer Correct Answer: A) USMCA. 18. Free international trade' means that: A) Goods can be transported between countries free of charge for ever. B) All countries use the same currency so it does not cost anything to convert currencies. C) There are no tariffs or quotas to limit trade between countries. D) Businesses can produce in any country without any legal controls. Show Answer Correct Answer: C) There are no tariffs or quotas to limit trade between countries. 19. Which theory hold that two countries would trade even when one country has absolute advantage in all products or another country does not have absolute advantage in any product- A) Adam Smith absolute advantage theory. B) Factor proportion theory. C) Comparative advantage theory. D) None of above. Show Answer Correct Answer: C) Comparative advantage theory. 20. The original members of the IMF were A) 29. B) 44. C) 5. D) 67. Show Answer Correct Answer: D) 67. ← 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