This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Economics – Quiz 32 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Economics Quiz 32 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. In comparing a tariff and quota, we find that ..... A) Both will generate revenue for government. B) The tariff generates revenue for the government but the quota does not. C) Neither the tariff nor the quota generates revenue for the government. D) The tariff generates revenue for the government but the quota does not. Show Answer Correct Answer: B) The tariff generates revenue for the government but the quota does not. 2. The UNCTAD was born in 1964 at ..... A) Geneva. B) London. C) Washington. D) Tokyo. Show Answer Correct Answer: A) Geneva. 3. A corporation is considered a multinational ..... if ..... A) Parent; more than 10% of its stock is held by a foreign company. B) Child; more than 50% of its stock is held by a foreign company. C) Parent; it owns more than 10% of a foreign firm. D) Child; more than 10% of its stock is held by a foreign company. Show Answer Correct Answer: C) Parent; it owns more than 10% of a foreign firm. 4. What kind of economic integration arrangement has common policies on product regulation, and free movement of goods, services, capital and labour? A) Common markets. B) Preferential trading area. C) Free trade areas. D) Custom unions. Show Answer Correct Answer: A) Common markets. 5. If the tariff on computers is not changed, but domestic computer producers shift from domestically produced semiconductors to imported components, then the effective rate of protection in the A) Increase. B) Decrease. C) Remain the same. D) No longer apply. Show Answer Correct Answer: A) Increase. 6. A useful material found in the environment A) Natural Resource. B) Scarcity. C) Renewable Resource. D) Economics. Show Answer Correct Answer: A) Natural Resource. 7. "A country should produce and export that good which is produced by the country's most abundant factor of production" ..... Which of the following theory postulate this statement? A) Absolute cost advantage theory. B) Ricard's theory of international trade. C) Heckscher-Ohlin model of international trade. D) None of these. Show Answer Correct Answer: C) Heckscher-Ohlin model of international trade. 8. When a currency experience falling value, it refer to the terms ..... in variable exchange rate system. A) Appreciation. B) Depreciation. Show Answer Correct Answer: B) Depreciation. 9. If a nation has an open economy, it means the nation: A) Allows private ownership of capital. B) Has flexible exchange rates. C) Has fixed exchange rates. D) Conducts trade with other countries. Show Answer Correct Answer: D) Conducts trade with other countries. 10. Foreign outsourcing is ..... A) The transfer of operations to foreign contractors. B) An example of foreign direct investment. C) An example of internalization. D) Currently illegal in the U.S. Show Answer Correct Answer: A) The transfer of operations to foreign contractors. 11. Importing more than exporting is A) Trade surplus. B) Trade deficit. C) Balance of trade. D) Balance of payment. Show Answer Correct Answer: B) Trade deficit. 12. ..... and quotas are the main ways the United States government controls trade. A) Products. B) Tariffs. C) Foreign. D) International. Show Answer Correct Answer: B) Tariffs. 13. The WTO has ..... members A) 151. B) 164. C) 104. D) 139. Show Answer Correct Answer: C) 104. 14. The amount by which the cost of a country's imports exceeds the value of its exports. A) Trade deficit. B) Balance of trade. C) Trade surplus. D) Trade account. Show Answer Correct Answer: A) Trade deficit. 15. One of the PRIMARY reasons that trade between nations takes place is because A) No nation can be economically self-sufficient. B) Resources are evenly distributed around the world. C) Nations use their absolute advantage in production to monopolize international markets. D) Nations produce a surplus at a lower cost and export it for goods that are too costly to produce. Show Answer Correct Answer: D) Nations produce a surplus at a lower cost and export it for goods that are too costly to produce. 16. The factor endowment model of international trade was developed by A) Adam Smith. B) David Ricardo. C) John Stuart Mill. D) Eli Heckscher and Bertil Ohlin. Show Answer Correct Answer: D) Eli Heckscher and Bertil Ohlin. 17. Which of the following would decrease the demand for A$ by the British A) More UK students go on gap year in australia. B) UK buy more australian exports. C) Uk invest in australian mining projects. D) UK tourists decide to stay in Majorca rather than go all tge way to australia. Show Answer Correct Answer: D) UK tourists decide to stay in Majorca rather than go all tge way to australia. 18. All of the following are examples of trade barriers, except? A) Quota. B) Income Tax. Show Answer Correct Answer: B) Income Tax. 19. "Nation could become rich and powerful only by exporting more than importing." is the view on trade of: A) Adam Smith. B) David Ricardo. C) Mercantilists. D) None of above. Show Answer Correct Answer: C) Mercantilists. 20. An agreement that will eliminate trade barriers as well as the barriers for the flow of FOP is an example of a A) Free Trade area. B) Preferential trade area. C) Customs union. D) Common market. Show Answer Correct Answer: D) Common market. ← 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