This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Economics – Quiz 24 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Economics Quiz 24 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The real cost terms of trade was developed by Viner A) True. B) False. Show Answer Correct Answer: A) True. 2. Who introduced the theory of absolute advantage? A) Adam Smith. B) David Ricardo. C) Bertil Ohlin. D) Michael Porter. Show Answer Correct Answer: A) Adam Smith. 3. If 1 USD costs 4 BRL (1 BRL=0.25 USD) and the BRL depreciates the new exchange rate could be A) 1 BRL = 0.10 USD. B) 1 BRL = 0.50 USD. Show Answer Correct Answer: A) 1 BRL = 0.10 USD. 4. Customs tariff is: A) List of systemized customs duty rates;. B) Systemized customs duty movement mechanism. C) Customs duties aimed at the welfare of the state;. D) Customs duties that are not aimed at public welfare. Show Answer Correct Answer: A) List of systemized customs duty rates;. 5. If Country Alpha has been experiencing a higher inflation rate than Country Beta over the past decade, which of the following is true? A) Alpha's currency will have appreciated relative to Beta's currency. B) Alpha's currency will have depreciated relative to Beta's currency. C) Alpha will have had lower nominal interest rate than Beta. D) Alpha will have had slower growth in the money supply than Beta. E) Alpha's economy will have grown at a faster rate than Beta's. Show Answer Correct Answer: B) Alpha's currency will have depreciated relative to Beta's currency. 6. What trade barrier limits the amount of a good allowed in the country? A) Embargo. B) Tariff. C) Quota. D) Subsidy. Show Answer Correct Answer: C) Quota. 7. It is correct to say that countries within a customs union have ..... A) Common external barriers. B) Common currency and a common central bank. C) Common policies on product regulation. D) None of the above. Show Answer Correct Answer: A) Common external barriers. 8. When the dollar falls A) It takes less dollars to equal a unit of foreign currency. B) It takes the same unit to equal a unit of foreign currency. C) It takes more dollars to equal a unit of foreign currency. D) None of above. Show Answer Correct Answer: C) It takes more dollars to equal a unit of foreign currency. 9. The currency exchange rate of the South African rand for the Botswana pula fell by 5.7% between August 2014 and August 2015. What would be the immediate effect of this? A) Botswana's level of protection would fall. B) Botswana's tourists travelling to South Africa would find it less expensive. C) South Africa's imports would be cheaper. D) South Africa's tourists travelling to Botswana would receive more pula per rand. Show Answer Correct Answer: B) Botswana's tourists travelling to South Africa would find it less expensive. 10. When a currency gains value, we say it has A) Depreciated. B) Appreciated. C) Exchanged. D) Gotten weaker. Show Answer Correct Answer: B) Appreciated. 11. Following a decrease in the real interest rate, there is an increase in financial capital outflows from Country A. The increase in capital outflows will mostly likely have which of the following effects on Country A's net exports and aggregate demand? A) Net exports decrease, aggregate demand decreases. B) Net exports decrease, aggregate demand no change. C) Net exports increase, aggregate demand increases. D) Net exports increase, aggregate demand decreases. E) Net exports increase, aggregate demand no change. Show Answer Correct Answer: C) Net exports increase, aggregate demand increases. 12. Trade development countries of the world? A) Makes it independent. B) Strengthens interdependence. C) It burns separately. D) None of above. Show Answer Correct Answer: B) Strengthens interdependence. 13. What does APR stand for? A) Annual Progressive Rate. B) Annual Percentage Raise. C) Accumulated Percentage Rate. D) Annual Percentage Rate. Show Answer Correct Answer: D) Annual Percentage Rate. 14. A resource that Earth or people can replace is A) Economics. B) Renewable Resource. C) Nonrenewable Resource. D) Scarcity. Show Answer Correct Answer: B) Renewable Resource. 15. Intra-industry trade theory A) Explains why the United States might export autos and import clothing. B) Explains why the United States might export and import differentiated versions of the same product, such as different types of autos. C) Assumes that transport costs are very low or do not exist. D) Ignores seasonal considerations for agricultural goods. Show Answer Correct Answer: B) Explains why the United States might export and import differentiated versions of the same product, such as different types of autos. 16. Any activity which slows or outright blocks the free exchange of goods and services between nations. A) Voluntary Trade. B) Specialization. C) Currency Exchange. D) Trade Barrier. Show Answer Correct Answer: D) Trade Barrier. 17. Financial assistance from the government to encourage production of or the purchase of a good is best described as a ..... A) Tariff. B) Embargo. C) Subsidy. D) Trade. Show Answer Correct Answer: C) Subsidy. 18. What is the best explanation of economies of scale? A) Costs per unit increase as the volume of production increases. B) Costs per unit decrease as the volume of product decreases. C) Larger economies make more products. D) Cost per unit decreases as the volume of production increases. Show Answer Correct Answer: D) Cost per unit decreases as the volume of production increases. 19. What is incorrect about FPI? A) It is mainly in the form of stocks or bonds. B) It is involved in management. C) It is denominated in a national currency. D) It takes place primarily through financial institutions such as banks and investment funds. Show Answer Correct Answer: B) It is involved in management. 20. In the ..... stage of economic development, theres no monetary system, capital investment, or formal economic development. A) Primitive Equilibrium. B) Transition. C) Takeoff. D) High Development. Show Answer Correct Answer: A) Primitive Equilibrium. ← 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