This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Economics – Quiz 29 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Economics Quiz 29 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A standard is A) A cash grant or loan from the government to support the business. B) A tax on imports. C) An official ban on trade. D) A requirement that promotes safety on all products. Show Answer Correct Answer: D) A requirement that promotes safety on all products. 2. What trade barrier is beneficial to both domestic producers AND domestic consumers of a good? A) Subsidy. B) Quota. C) Embargo. D) Tariff. Show Answer Correct Answer: A) Subsidy. 3. Ad valorem tariffs are A) Imports taxes stated in ads industry publications. B) Import taxes calculated as a fixed charge for each unit of imported goods. C) The same as import quotas. D) Import taxes calculated as a fraction of the value of the imported good. Show Answer Correct Answer: D) Import taxes calculated as a fraction of the value of the imported good. 4. A manufacturing firm based in country C buys in raw materials from country A and sells the finished goods to country B. The firm could gain if country C's currency: A) Depreciated against both other currencies. B) Depreciated against currency A but appreciated against currency B. C) Appreciated against currency A but depreciated against currency B. D) Appreciated against both currencies. Show Answer Correct Answer: C) Appreciated against currency A but depreciated against currency B. 5. A country's exports exceeds the value of its imports A) Trade Surplus. B) Trade Deficit. C) Tariff. D) Quota. Show Answer Correct Answer: A) Trade Surplus. 6. According to the factor endowment model of Heckscher and Ohlin, countries heavily endowed with land will: A) Devote excessive amounts of resources to agricultural production. B) Devote insufficient amounts of resources to agricultural production. C) Export products that are land-intensive. D) Import products that are land-intensive. Show Answer Correct Answer: C) Export products that are land-intensive. 7. The Heckscher-Ohlin model rules out the classical model's basis for trade by assuming that ..... is (are) identical between countries. A) Factor endowment. B) Factor intensities. C) Technology. D) Opportunity costs. Show Answer Correct Answer: C) Technology. 8. American tourists benefit when the dollar does what? A) Rises (appreciates). B) Falls (depreciates). Show Answer Correct Answer: A) Rises (appreciates). 9. An exchange rate A) Is the value of a currency relative to another currency. B) Is the ability to produce more of a given product. C) Is the ability to produce a product most efficiently. D) Occurs when a nation exports equal their imports. Show Answer Correct Answer: A) Is the value of a currency relative to another currency. 10. Tariffs and Quotas can benefit nations imposing them by ..... A) Raising revenue. B) Increasing variety of goods. C) Lowering prices. D) Increasing consumption. Show Answer Correct Answer: A) Raising revenue. 11. Tariffs are different from assigned import quotas in that tariffs will A) Restrict imports. B) Increase the price of imported goods. C) Benefit domestic consumers of imported goods. D) Hurt domestic producers of goods facing import competition. E) Generate additional revenue for the domestic government. Show Answer Correct Answer: E) Generate additional revenue for the domestic government. 12. ..... refers to the ability of a country in producing a particular goods and services at lower opportunity cost as compared to other countries A) Absolute advantage. B) Comparative advantages. C) Mutual advantages. D) Different advantage. Show Answer Correct Answer: B) Comparative advantages. 13. What three counties make up NAFTA? A) U.S., China, and Mexico. B) U.S., United Kingdom, and China. C) U.S. Canada, and Mexico. D) U.S., Canada, China. Show Answer Correct Answer: C) U.S. Canada, and Mexico. 14. International trade applies ..... models to help understand the international economy while international finance applies ..... models to help understand the international economy. A) Analytical; macroeconomic. B) Microeconomic; analytical. C) Microeconomic; macroeconomic. D) Macroeconomic; microeconomic. Show Answer Correct Answer: C) Microeconomic; macroeconomic. 15. Goods and services brought in from other countries A) Supply. B) Exports. C) Imports. D) Tariff. Show Answer Correct Answer: C) Imports. 16. Occurs when a nation imports more than it exports A) Favorable balance of trade. B) Floating exchange rate. C) Unfavorable Balance of Trade. D) Managed floating exchange rate. Show Answer Correct Answer: C) Unfavorable Balance of Trade. 17. What are some negatives of globalization? A) Workers are exploited in sweatshops. B) Pollution and deforestation. C) Low wages for factory workers in Asia and Africa. D) All of the answers are correct. Show Answer Correct Answer: D) All of the answers are correct. 18. Consider a tax that imposes a flat rate of 2, 000 dollars annually regardless of income. Who will be affected negatively? A) Upper income. B) Middle income. C) Lower income. D) All will be affected negatively. Show Answer Correct Answer: D) All will be affected negatively. 19. Taxes on imported goods A) Sanction. B) Tariff. C) Embargo. D) Stoppage. Show Answer Correct Answer: B) Tariff. 20. Income tax is the best example of what type of tax? A) Regressive. B) Proportional. C) Progressive. D) Property. Show Answer Correct Answer: C) Progressive. ← 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