This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Economics – Quiz 37 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Economics Quiz 37 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the term for the cost of the next best alternative use of money, time, or resources when one choice is made rather than another? A) Opportunity cost. B) Absolute advantage. C) Comparative advantage. D) Trade balance. Show Answer Correct Answer: A) Opportunity cost. 2. A ..... is a rule or other order prescribed by authority, to keep order within conduct A) Regulation. B) Economy. C) Division of labor. D) Opportunity cost. Show Answer Correct Answer: A) Regulation. 3. Goods sent for sale to another country A) Import. B) Export. C) Transit. D) None of above. Show Answer Correct Answer: B) Export. 4. Comparative advantage looks at relative efficiency, taking into account the production with the lowest opportunity costs. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 5. International trade MOST OFTEN takes place because of differences in A) Trade barriers. B) Comparative advantage. C) Exchange rates. D) Absolute advantage. Show Answer Correct Answer: B) Comparative advantage. 6. International trade tends to cause welfare losses to at least some groups in a country A) The less mobile country's resources. B) The more mobile country's resources. C) The lower the country's initial living standard. D) The higher the country's initial living standard. Show Answer Correct Answer: A) The less mobile country's resources. 7. ..... is the highest hierarchical level in the organisational A) General council. B) Ministerial conference. C) Director General. D) Secretariat at WTO. Show Answer Correct Answer: B) Ministerial conference. 8. Which definition BEST describes the term balance of trade? A) The difference between a country's exchange rate and the value of a country's imports. B) The value of a country's goods and services that are exported divided by its per capita income. C) The difference between the yearly value of a country's exports and the yearly value of goods it produces. D) The value of a country's exported goods and services minus the value of goods and services a country imports. Show Answer Correct Answer: D) The value of a country's exported goods and services minus the value of goods and services a country imports. 9. What happen to the price of goods and quantity when tax was imposed in international trade? A) Price = increase, Quantity = increase. B) Price = decrease, Quantity = increase. C) Price = increase, Quantity = decrease. D) Price = decrease, Quantity = decrease. Show Answer Correct Answer: C) Price = increase, Quantity = decrease. 10. The strengthening of regional blocks like EU, ASEAN, and UN is gaining a stable ground. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 11. When a country has the lowest opportunity cost for producing the good or service A) Comparative Advantage. B) Absolute Advantage. C) Trade Surplus. D) Trade Deficit. Show Answer Correct Answer: A) Comparative Advantage. 12. ..... is the ability to produce goods at a lower price than another manufacturer. A) Absolute superiority. B) Comparative advantage. Show Answer Correct Answer: B) Comparative advantage. 13. What is the full form of ASEAN? A) Association of South East Asian Nations. B) Administration of Southern East Asian Nations. C) Organisation of South East Asian Nations. D) None. Show Answer Correct Answer: A) Association of South East Asian Nations. 14. The price of one currency in the currencies of other nations. A) Trade Wars. B) Foreign Exchange Market. C) Foreign Exchange Rate. D) Protective Market. Show Answer Correct Answer: C) Foreign Exchange Rate. 15. Depending on the method of determining the duty, it is divided into what duties. A) Import, export, transit. B) Special, ad valorem, mixed. C) Seasonal, anti-dumping, compensatory. D) Nominal, effective. Show Answer Correct Answer: B) Special, ad valorem, mixed. 16. Floating exchange rates A) Are set daily by the Fed. B) Are an established by an agreement of two nations. C) Values are determined by supply and demand. D) Are a result of bilateral agreements. Show Answer Correct Answer: C) Values are determined by supply and demand. 17. An example of a Monetary Union A) NAFTA. B) EU. C) ASEAN. D) CARICOM. Show Answer Correct Answer: B) EU. 18. The fact that the U.S. tends to import goods from Guatemala that it could produce more abundantly itself tends to suggest that A) Guatemala has an absolute advantage in producing these goods. B) Guatemala has a comparative advantage in producing these goods. C) Guatemala has more net exports than the U.S. D) Guatemala enjoys a trade deficit over the U.S. Show Answer Correct Answer: B) Guatemala has a comparative advantage in producing these goods. 19. If the US dollar increases in value compared with the Mexican peso, what has the dollar done? A) Depreciate. B) Appreciate. C) Contractionary policy. D) Flexible exchange rate. Show Answer Correct Answer: B) Appreciate. 20. Homogenization is the name given to the process whereby globalization causes one culture to consume another. It would tend to highlight the rise of world beat, world cuisines, world tourism, uniform consumption patterns and cosmopolitanism 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