This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Economics – Quiz 36 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Economics Quiz 36 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of these four are *NOT* the most important trading partners for the United States A) Canada. B) Mexico. C) China. D) Russia. Show Answer Correct Answer: D) Russia. 2. If a tariff and import quota lead to equivalent increases in the domestic price of steel, then: A) The quota results in efficiency reductions but the tariff does not. B) The tariff results in efficiency reductions but the quota does not. C) They have identical impacts on how much is produced and consumed. D) They have identical impacts on how income is distributed. Show Answer Correct Answer: C) They have identical impacts on how much is produced and consumed. 3. Quotas are government imposed limits on the ..... of goods trade between countries. A) Prices. B) Quantity. C) Revenue. D) Costs. Show Answer Correct Answer: B) Quantity. 4. Tires made in Tennessee factories are used on cars in Europe. A) Import. B) Export. Show Answer Correct Answer: B) Export. 5. . A ..... is when the value of products is greater than exported (exports are less than imports. A) Trade Deficit. B) Trade Surplus. C) Tariff. D) Embargo. Show Answer Correct Answer: A) Trade Deficit. 6. A country that operates in self-reliance and self-sufficiency and does not trade at all with global partners. A) A developing country. B) Colony. C) Autarky. D) None of above. Show Answer Correct Answer: C) Autarky. 7. Which of the following protectionist measures puts in the greatest burden on domestic taxpayers? A) Tariff. B) Subsidies. C) Quotas. D) None of above. Show Answer Correct Answer: B) Subsidies. 8. Which of the following statement is NOT correct regarding the membership of the IMF? A) All member countries of the IMF are not sovereign states. B) Nauru is the latest member of the IMF. C) All "member countries" of the IMF are members of the United Nations. D) Currently its membership is 189. Show Answer Correct Answer: C) All "member countries" of the IMF are members of the United Nations. 9. Those who benefited from the policy of protectionism through the tariff are..... A) User in a foreign country. B) Local consumers. C) Local producers. D) Foreign consumers. Show Answer Correct Answer: C) Local producers. 10. A stronger British pound is beneficial for: A) U.S. exchange students studying in Britain with a U.S. scholarship. B) British firms selling goods and services in Canada. C) British investors who have invested money in Australia. D) Exchange students with a British scholarship studying in Canada. Show Answer Correct Answer: D) Exchange students with a British scholarship studying in Canada. 11. A lower tariff on imported steel would most likely benefit A) Foreign producers at the expense of domestic consumers. B) Domestic manufacturers of steel. C) Domestic consumers of steel. D) Workers in the steel industry. Show Answer Correct Answer: C) Domestic consumers of steel. 12. An export is A) Items purchased from other countries. B) Dependence on others to get products you do not produce and needing to purchase items from them. C) Items sold to other countries. Goods exit the USA. D) Producing certain goods very well and for a reduced cost. Show Answer Correct Answer: C) Items sold to other countries. Goods exit the USA. 13. What is meant by absolute advantage in international trade according to Adam Smith? A) The ability of a country to produce all types of goods or services at the same opportunity cost as other countries. B) The ability of a country to produce all types of goods or services at a lower opportunity cost than other countries. C) The ability of a country to produce certain goods or services at the same opportunity cost as other countries. D) The ability of a country to produce a particular good or service at a lower opportunity cost than other countries. E) The ability of a country to produce certain goods or services at a higher opportunity cost than other countries. Show Answer Correct Answer: D) The ability of a country to produce a particular good or service at a lower opportunity cost than other countries. 14. The concept of free trade can be defined as A) The reduction of tariffs and subsidies in countries so they are no longer as large as they were in the past. B) The removal of all trade barriers both direct and indirect to facilitate more efficient use of scarce resources. C) The free movement of all goods, service, ideas, people, money and technology across the globe. D) Trade which is based on the cheapest prices due to the benefits of perfect competition and economies of scale. Show Answer Correct Answer: B) The removal of all trade barriers both direct and indirect to facilitate more efficient use of scarce resources. 15. Mercantilists believed that a country could increase the amount of wealth it had by ..... A) Promoting exports and discouraging imports. B) Discouraging exports and promoting imports. C) Controlling imports and exports. D) Increasing both imports and exports. Show Answer Correct Answer: A) Promoting exports and discouraging imports. 16. What were the mercantilists' views on international trade? A) They support international trade as a means of increasing a country's wealth. B) They oppose international trade because it can reduce a country's wealth. C) They consider international trade to have no influence on a country's wealth. D) They consider international trade to only be beneficial for developed countries. E) They consider international trade only beneficial for developing countries. Show Answer Correct Answer: A) They support international trade as a means of increasing a country's wealth. 17. Decrease in value of one currency relative to the other A) Depreciation. B) Appreciation. C) Quota. D) None of above. Show Answer Correct Answer: A) Depreciation. 18. The practice of goods being traded between countries without any tariffs that might slow down trade is known as ..... A) Barriers. B) Embargos. C) Restriction. D) Free Trade. Show Answer Correct Answer: D) Free Trade. 19. Exports for China would increase if ..... A) The yen was weak. B) The yen was strong. C) The yen appreciated. D) The US dollar was weak. Show Answer Correct Answer: A) The yen was weak. 20. The Heckscher-Ohlin theorem states that a country will have comparative advantage in the good whose production is relatively intensive in the ..... with which the country is relatively abundant. A) Tastes. B) Technology. C) Factor/resource. D) Opportunity cost. Show Answer Correct Answer: C) Factor/resource. ← 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