This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Economics – Quiz 28 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Economics Quiz 28 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A ..... is a group of countries that have reduced or even eliminated tariffs, allowing for the free flow of goods among the member nations. A) Exchange rates. B) Subsidy. C) Trading bloc. D) Balance of trade. Show Answer Correct Answer: C) Trading bloc. 2. The disadvantages and negative aspects of globalization are: A) Job losses in developed nations. B) Periodic international financial crises. C) Climate disaster. D) All of above. Show Answer Correct Answer: D) All of above. 3. An increase in the value of currency will cause A) Promoting cost push inflation. B) Promoting demand pull inflation. C) Increase the value of import. D) Increase the value of export. Show Answer Correct Answer: C) Increase the value of import. 4. Means a nation has an advantage when it can produce a god at a lower opportunity cost than another nation. A) Comparative advantage. B) Absolute advantage. C) Purchasing power. D) Balance of trade. Show Answer Correct Answer: A) Comparative advantage. 5. Comparative advantage is when a country an produce a product for ..... A) Less of a product. B) More of a product. C) A higher opportunity cost. D) A lower opportunity cost. Show Answer Correct Answer: D) A lower opportunity cost. 6. Refers to the extent to which a country is endowed with such resources as land, labor, and capital. A) Comparative advantage. B) Factor endowments. C) Factors of production. D) None of above. Show Answer Correct Answer: B) Factor endowments. 7. The ability to produce a product most efficiently given all the other products that could be produced. A) Absolute Advantage. B) Comparative Advantage. C) Positive Advantage. D) Negative Advantage. Show Answer Correct Answer: B) Comparative Advantage. 8. If Hong Kong and Taiwan have identical production possibilities curves that are subject to increasing opportunity costs: A) Trade would depend on differences in demand conditions. B) Trade would depend on economies of large-scale production. C) Trade would depend on the use of different currencies. D) There would be no basis for gainful trade. Show Answer Correct Answer: A) Trade would depend on differences in demand conditions. 9. What trade barrier puts safety, health or environmental standards that foreign producers have to comply? A) Standard. B) Embargo. C) Quota. D) Tariff. Show Answer Correct Answer: A) Standard. 10. Small companies face only local ones in competition. A) True. B) False. Show Answer Correct Answer: B) False. 11. Which of the following is not an objective of the World Trade Organization (WTO) A) To promote free trade among member countries by reducing trade barriers. B) To handle trade disputes among member nations. C) To offer loans to developing economics. D) To be a forum for trade negotiations. Show Answer Correct Answer: C) To offer loans to developing economics. 12. Which trading bloc shares a common currency? A) North Atlantic Free Trade Agreement (NAFTA). B) European Union (EU). C) Association of Southeast Asian Nations (ASEAN). D) None of above. Show Answer Correct Answer: B) European Union (EU). 13. Balance of payments used the ..... system accounting A) Single entry. B) Double entry. C) Cash basis. D) Accrual basis. Show Answer Correct Answer: B) Double entry. 14. The fact that industrialized countries levy very low or no tariff on raw materials and semi processed goods A) Helps developing countries export manufactured products. B) Has no effect on developing country exports. C) Hurts developing country efforts to export manufactured goods. D) None of the above. Show Answer Correct Answer: C) Hurts developing country efforts to export manufactured goods. 15. If the United States experiences steady growth in GDP and low unemployment rates, what would happen in the foreign exchange market? A) US currency would appreciate. B) US currency would depreciate. Show Answer Correct Answer: A) US currency would appreciate. 16. An unfavourable movement in the terms of trade will mean that: A) A holiday to Bali will become more expensive for Australians. B) Imports are now more expensive to buy. C) The value of the Australian dollar has risen against a basket of other nations' currencies. D) Australia has to export more goods and services to purchase the same volume of imports. Show Answer Correct Answer: D) Australia has to export more goods and services to purchase the same volume of imports. 17. The Heckscher-Ohlin assumes that ..... are identical between countries. A) Tastes and preferences. B) Technology levels. C) Factor endowments. D) Both a and b. Show Answer Correct Answer: D) Both a and b. 18. 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 "H" to produce 1 hot dog? A) 12 hamburgers. B) 2 hamburgers. C) 1/2 hamburger. D) 3 hamburgers. Show Answer Correct Answer: C) 1/2 hamburger. 19. Factor endowments refer to a nation's position in factors of production necessary to compete in a given industry. A) True. B) False. Show Answer Correct Answer: A) True. 20. Restriction to regulate international commerce is called a(n) ..... A) Trade. B) Subsidy. C) Trade Barrier. D) Free Trade. Show Answer Correct Answer: C) Trade Barrier. ← 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