This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Economics – Quiz 35 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Economics Quiz 35 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What 2 things made international trade easier? A) Currency & trade barriers. B) Currency & exchange rates. C) Exchange rates & trade barriers. D) Currency & specialization. Show Answer Correct Answer: B) Currency & exchange rates. 2. Why World Bank was established? A) None below. B) To improve the adverse Balance of Payment situation of the nonmember countries. C) To reconstruct the economies damaged during the Second World War. D) To promote the International Trade. Show Answer Correct Answer: C) To reconstruct the economies damaged during the Second World War. 3. Which of the following is the gain to nations from international trade? A) The world output will increase. B) Greater advancement in technology. C) Widened choices to the domestic trade. D) All the above. Show Answer Correct Answer: D) All the above. 4. Compartive advantage is a contributing factor to ..... A) Absolute Advantage. B) International Economic Competition. C) International Conflicts. D) International trade. Show Answer Correct Answer: D) International trade. 5. An economy without trade relations with other countries is called A) Open economy. B) Closed economy. C) Protected economy. D) An unprotected economy. Show Answer Correct Answer: B) Closed economy. 6. International trade results in not equalization of price A) True. B) False. Show Answer Correct Answer: B) False. 7. A tariff can be defined as a: A) Tax on imports. B) Tax on exports. C) Legal limit on imports. D) Legal limit on exports. Show Answer Correct Answer: A) Tax on imports. 8. A firm's foreign direct investment. decisions are, in the case of horizontal FDI, strongly influenced by ..... and, in the case of vertical FDI, strongly influenced by ..... A) Materials costs; labor costs. B) Trade costs; production costs. C) Labor costs; trade costs. D) Production costs; trade costs. Show Answer Correct Answer: B) Trade costs; production costs. 9. This refers to the price of one country's currency expressed in terms of another country's currency. A) Currency Rate. B) Money Rate. C) Exchange rate. D) None of the above. Show Answer Correct Answer: C) Exchange rate. 10. The statement that "tariffs are needed to protect Malaysian firm from foreign producers who sell excess goods in the Malaysian markets at less cost" could be most closely associated with which tariff argument? A) Diversification for stability. B) Increased domestic employment. C) Cheap foreign labour. D) Protection against dumping. Show Answer Correct Answer: D) Protection against dumping. 11. Which of the following is not the objective of the IMF? A) To ensure balanced international trade. B) To ensure exchange rate stability. C) To promote international monetary cooperation. D) To provide loan to private sectors. Show Answer Correct Answer: D) To provide loan to private sectors. 12. Trade bloc:France, Germany, Spain A) European Union. B) NAFTA. C) ASEAN. D) None of above. Show Answer Correct Answer: A) European Union. 13. One reason country's choose to overvalue their currency is: A) Increased export competitiveness. B) Greater employment is domestic industries. C) Cheaper imports. D) None of above. Show Answer Correct Answer: C) Cheaper imports. 14. Out of the following, which investment has the highest return but also the highest risk? A) CDs. B) Stock. C) Savings Account. D) Bonds. Show Answer Correct Answer: B) Stock. 15. Who propounded the theory of comparative costs? A) Ricardo. B) Haberler. C) Adam Smith. D) None of above. Show Answer Correct Answer: A) Ricardo. 16. What is the term for the ability of a country or a company to produce a particular good or service at a lower marginal and opportunity cost over another? A) Comparative advantage. B) Absolute advantage. C) Trade balance. D) Opportunity cost. Show Answer Correct Answer: A) Comparative advantage. 17. The U.S. only allows 1 million oranges to be imported from other countries. A) Tariff. B) Import Quota. C) Embargo. D) None of them. Show Answer Correct Answer: B) Import Quota. 18. Only producing certain goods instead of everything you need is known as A) Importing. B) Specialization. C) Balance of trade. D) Absolute advantage. Show Answer Correct Answer: B) Specialization. 19. ..... is the concentration of the productive efforts of individuals and firms on a limited number of activities. A) Exports. B) Imports. C) Exchange rates. D) Specialization. Show Answer Correct Answer: D) Specialization. 20. Lop-sided economic development of a country is not at all desirable A) True. B) False. Show Answer Correct Answer: A) True. ← 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