This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Economics – Quiz 33 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Economics Quiz 33 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Those in favor of protectionist trade policies would most likely A) Believe that restrictions harm consumers. B) Argue in support of free trade. C) Support a massive reduction in tariffs. D) Cite the need to preserve domestic industries and jobs. Show Answer Correct Answer: D) Cite the need to preserve domestic industries and jobs. 2. WTO was formed to overcome in ineffectiveness of ..... to promote A) IMF. B) GATT. C) NAFTA. D) IBRS. Show Answer Correct Answer: B) GATT. 3. Which of the following is most likely to cause an increase in the international value of the dollar? A) Higher U.S. interest rates. B) Lower U.S. government spending. C) Higher real interest rates abroad. D) Expansionary monetary policy in the U.S. Show Answer Correct Answer: A) Higher U.S. interest rates. 4. Which of the following SAARC member has the highest population? A) Bangladesh. B) Pakistan. C) Nepal. D) Afghanistan. Show Answer Correct Answer: B) Pakistan. 5. Japanese auto firms agree to limits set in Washington D.C., on the # of Japanese cars that may be sold in the U.S. A) Embargo. B) Quota. C) Tarriff. D) Standard. Show Answer Correct Answer: B) Quota. 6. The use of trade barriers to protect a nation's industries from foreign competition A) Balance of trade. B) NAFTA. C) Quotas. D) Protectionism. Show Answer Correct Answer: D) Protectionism. 7. Which of these is *NOT* a factor of production? A) Human Capital. B) Natural Resources. C) Physical Capital. D) Land Ownership. Show Answer Correct Answer: D) Land Ownership. 8. Which of the following will cause an depreciation of the Australian Dollar? A) Lower interest rates. B) Decrease in export volume. C) Political instability. D) Low inflation. Show Answer Correct Answer: D) Low inflation. 9. Government policy can influence rivalry through regulation and antitrust laws. A) True. B) False. Show Answer Correct Answer: A) True. 10. Placing taxes on imported shoes from Vietnam is an example of A) Trade barrier. B) Trade surplus. C) Balanced budget. D) Monetary policy. Show Answer Correct Answer: A) Trade barrier. 11. Absolute advantage is when country A makes ..... than country B. A) More. B) Less. C) Equal. D) Fewer. Show Answer Correct Answer: A) More. 12. Protectionism in: A) Is an economic policy aimed at protecting the national economy from national competition. B) Is an economic policy aimed at strengthening foreign competition through the national economy. C) Is an economic policy aimed at protecting the foreign economy from national competition. D) Is an economic policy aimed at protecting the national economy from foreign competition. Show Answer Correct Answer: D) Is an economic policy aimed at protecting the national economy from foreign competition. 13. The theory which explores the possibility of two nations operating at the same level of efficiency benefitting by trading with each other is- A) Comparative advantage theory. B) Reciprocal demand theory. C) Haberler's opportunity cost theory. D) H-O theory. Show Answer Correct Answer: C) Haberler's opportunity cost theory. 14. Under a system of flexible exchange rate, the adjustment in the balance of payments are smooth, painless and continuous A) True. B) False. Show Answer Correct Answer: A) True. 15. The most vocal political pressure for tariffs is generally made by A) Consumers lobbying for export tariffs. B) Consumers lobbying for import tariffs. C) Producers lobbying for export tariffs. D) Producers lobbying for import tariffs. Show Answer Correct Answer: D) Producers lobbying for import tariffs. 16. Divisions of labour is also called as A) Individual specialization. B) Inter-regional specialization. C) Both. D) None of above. Show Answer Correct Answer: C) Both. 17. The country of Algonia produced and then shipped out $ 5 billion in goods and services to other nations. It brought in $ 4 billion in goods and services? What does this country have? A) A balanced budget. B) A trade deficit. C) A trade balance. D) A trade surplus. Show Answer Correct Answer: D) A trade surplus. 18. What was a result of trade according to Adam Smith? A) 0:0. B) 1:0 or 0:1. C) 1:1. D) Undefined. Show Answer Correct Answer: C) 1:1. 19. A fee charged for goods brought into a country from another country. A) Quota. B) Dumping. C) Tariff. D) Embargo. Show Answer Correct Answer: C) Tariff. 20. 3) The Ricardian model demonstrates that A) Trade between two countries may benefit both if each exports the product in which it has a comparative advantage. B) Trade between two countries always benefits the country with a larger labor force. C) Trade between two countries will benefit both countries. D) Trade between two countries may benefit one but harm the other. Show Answer Correct Answer: A) Trade between two countries may benefit both if each exports the product in which it has a comparative advantage. ← 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