This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Economics – Quiz 30 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Economics Quiz 30 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is a TRUE statement concerning the imposition in the U.S. of a tariff on cheese? A) It lowers the price of cheese domestically. B) It raises the price of cheese internationally. C) It raises revenue for the government. D) It will always result in retaliation from abroad. Show Answer Correct Answer: C) It raises revenue for the government. 2. The Malaysian government buys a new Boeing 787 from the U.S. This transaction is recorded as A) Current account. B) Financial/capital account. C) Official reserves. D) None of above. Show Answer Correct Answer: A) Current account. 3. The movement to free international trade is most likely to generate short-term unemployment in which industries: A) Industries in which there are neither imports nor exports. B) Import-competing industries. C) Industries that sell to domestic and foreign buyers. D) Industries that sell to only foreign buyers. Show Answer Correct Answer: B) Import-competing industries. 4. Mill's Theory of reciprocal demand was developed with the illustration of two countries A) England and Germany. B) Germany and U.S.A. C) U.K and U.S.A. D) None of above. Show Answer Correct Answer: A) England and Germany. 5. A government can determined the value of exchange rate in ..... A) Flexible exchange rate system. B) Fixed exchange rate system. Show Answer Correct Answer: B) Fixed exchange rate system. 6. What is an official ban on trade or other commercial activity with a particular country? A) Tariff. B) Product standard. C) Embargo. D) Quota. Show Answer Correct Answer: C) Embargo. 7. What occurs when EXPORTS exceed IMPORTS? A) Trade Surplus. B) Trade Deficit. C) Trade Equilibrium. D) Economic Growth. Show Answer Correct Answer: A) Trade Surplus. 8. What is the ability to produce more of a given product with the same amount of resources known as? A) Comparative advantage. B) Trade balance. C) Absolute advantage. D) Specialization. Show Answer Correct Answer: C) Absolute advantage. 9. Refer to the presence or absence of supplier industries and related industries that are intentionally competitive. A) Demand conditions. B) Relating and supporting industries. C) Firm strategy, structure, and rivalry. D) None of above. Show Answer Correct Answer: B) Relating and supporting industries. 10. A specification of a maximum amount of a foreign produced good that will be allowed to enter the country over a given time period is referred to as a (an): A) Domestic subsidy. B) Export subsidy. C) Import quota. D) Export quota. Show Answer Correct Answer: C) Import quota. 11. It suggested that the value of a commodity was determined by and could be measured objectively by the average number of labor hours necessary to produce it. A) Exchange theory of value. B) Labor theory of value. C) Subjective theory of value. D) Objective theory of value. Show Answer Correct Answer: B) Labor theory of value. 12. What is the purpose of the law of comparative advantage? A) Increase the cost of producing goods or services. B) Increases the opportunity cost of producing goods or services. [. C) Increase profits from international trade. D) Increases the cost of consuming goods or services. E) Increase the cost of distributing goods or services. Show Answer Correct Answer: C) Increase profits from international trade. 13. A specific tariff provides home producers more protection when A) The home market buys cheaper products rather than expensive products. B) It is applied to a commodity with many grade variations. C) The home demand for a good is elastic with respect to price changes. D) It is levied on manufactured goods rather than primary products. Show Answer Correct Answer: A) The home market buys cheaper products rather than expensive products. 14. Government payments transferred to exporting companies allowing the companies to compete with other nations A) Tariff. B) Exchange Rates. C) Subsidy. D) Standards. Show Answer Correct Answer: C) Subsidy. 15. Factors of production are perfectly mobile between different countries A) True. B) False. Show Answer Correct Answer: B) False. 16. BMW pays $ 1 million to a U.S. shipper for transporting cars from Germany to the United States. A) Credit. B) Debit. Show Answer Correct Answer: A) Credit. 17. Which is an example of a quota? A) The U.S. stops trade with China. B) The U.S. limits the amount of foreign cars brought into our country. C) The U.S. pays a high tax on BMW cars brought into the country. D) None of above. Show Answer Correct Answer: B) The U.S. limits the amount of foreign cars brought into our country. 18. What are the payments made by the government to provide financial support to certain industries? A) Embargo. B) Sanction. C) Subsidy. D) Quota. Show Answer Correct Answer: C) Subsidy. 19. According to the law of comparative advantage, a country should A) Specialize and export goods with the lowest production cost. B) Specialize and export goods with the lowest opportunity cost. C) Specialize and export goods with the lowest average cost. D) Specialize and export goods with the highest opportunity cost. Show Answer Correct Answer: B) Specialize and export goods with the lowest opportunity cost. 20. The WTO had 77 members countries on it formation on January 1, ..... A) 1995. B) 1996. C) 1994. D) 1998. Show Answer Correct Answer: A) 1995. ← 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