This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Economics – Quiz 39 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Economics Quiz 39 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. When the dollar "rises" compared to other currencies (it appreciates), which group benefits the MOST? A) Those who export products. B) Those who import products. Show Answer Correct Answer: B) Those who import products. 2. Which of the following is most likely to reduce Australia's import volumes? A) A recession in Australia and an appreciation of the Australian dollar. B) An economic expansion in Australia and a depreciation of the Australian dollar. C) An economic expansion in Australia and an appreciation of the Australian dollar. D) A recession in Australia and a depreciation of the Australian dollar. Show Answer Correct Answer: D) A recession in Australia and a depreciation of the Australian dollar. 3. If the value of a country's imports exceeds the value of its exports. A) Balance of trade. B) Trade Surplus. C) Trade deficit. D) Trade barriers. Show Answer Correct Answer: C) Trade deficit. 4. Financial Account transactions include items such as A) Imports. B) Exports. C) Transfers & Remittances. D) Purchase and sale of stocks and bonds. Show Answer Correct Answer: D) Purchase and sale of stocks and bonds. 5. If the Mexican peso depreciates compared to the Canadian dollar, exports from Canada to Mexico ..... A) Would likely decrease. B) Would likely increase. C) Wouldn't change at all. D) Would have to stop all together. Show Answer Correct Answer: A) Would likely decrease. 6. With a partial trade agreement, A) Two or more countries agree to liberalize trade in a selected group of categories. B) Two or more countries set common tariff towards non-members. C) Two or more countries allow free mobility of inputs such as capital and labour. D) None of above. Show Answer Correct Answer: A) Two or more countries agree to liberalize trade in a selected group of categories. 7. 2) The Ricardian model attributes the gains from trade associated with the principle of comparative advantage result to A) Differences in technology. B) Differences in resources. C) Differences in labor productivity. D) Differences in preferences. Show Answer Correct Answer: C) Differences in labor productivity. 8. One advantage to the business of becoming a multinational is that: A) It will be able to produce goods closer to each country's market. B) It will have fewer factories and operating bases. C) Communication will be easier within the business. D) It will tend to produce the same basic product for markets throughout the world. Show Answer Correct Answer: A) It will be able to produce goods closer to each country's market. 9. The figure illustrates the international movement of capital. When there is no international movement of capital, Nation 1 and Nation 2 invest their entire capital stock domestically, its total output of country 1 is ..... A) O1FGA. B) O2AMJ. C) O1FEB. D) O2JEB. Show Answer Correct Answer: A) O1FGA. 10. A sum of money granted by the government or a public body to assist an industry or business so that the price of a commodity or service may remain low or competitive. A) Loan. B) Subsidy. C) Sanction. D) Tariff. Show Answer Correct Answer: B) Subsidy. 11. A primary reason why nations conduct international trade is because: A) Some nations prefer to produce one thing while others produce another. B) Resources are not equally distributed to all trading nations. C) Trade enhances opportunities to accumulate profits. D) Interest rates are not identical in all trading nations. Show Answer Correct Answer: B) Resources are not equally distributed to all trading nations. 12. Many in the US are concerned about the depreciation of the US dollar. They would like to increase the value of the dollar. Which is the BEST argument for or against whether the value of the dollar should be increased? A) Yes, boosting the dollar will increase US exports. B) Yes, boosting the dollar will decrease US imports. C) No, boosting the dollar will anger foreign consumers and start a trade war. D) No, boosting the dollar will increase US imports and decrease US exports. Show Answer Correct Answer: D) No, boosting the dollar will increase US imports and decrease US exports. 13. Study on economic interdependence between countries and its effects on economies is known as A) International Economics. B) Business Economics. C) Gender economics. D) None of the above. Show Answer Correct Answer: A) International Economics. 14. A record of all the transactions that occurred between the individuals, businesses, and government units of one nation and those of the rest of the world. A) Balance of Exports. B) Balance of Power. C) Balance of Trade Payments. D) Balance of Imports. Show Answer Correct Answer: C) Balance of Trade Payments. 15. Taxes on imports specifically to raise money, are rarely used today. A) Quota. B) Dumping. C) Import. D) Revenue Tariff. Show Answer Correct Answer: D) Revenue Tariff. 16. A tariff-rate quota is essentially a A) Two-tier tariff applied to a country's imports. B) Three-tier tariff applied to a country's imports. C) Two-tier tariff applied to a country's exports. D) Three-tier tariff applied to a country's imports. Show Answer Correct Answer: A) Two-tier tariff applied to a country's imports. 17. If the US dollar appreciates relative to the Canadian dollar, what is a likely outcome? A) Trade surplus in US. B) Trade deficit in Canada. C) Trade deficit in both. D) Trade surplus in Canada. Show Answer Correct Answer: D) Trade surplus in Canada. 18. ..... countries were members of WTO as on 1st January 1995 A) 151. B) 164. C) 104. D) 139. Show Answer Correct Answer: C) 104. 19. International trade and domestic trade differ because of ..... A) Different government policies. B) Immobility of factors. C) Trade restrictions. D) All of the above. Show Answer Correct Answer: D) All of the above. 20. One potential disadvantage for a country of encouraging a multinational business to set up is that: A) Jobs might be lost in existing national businesses. B) Tax revenue to the government will fall. C) These companies never export any products from the countries they operate in. D) Costs of production are likely to be high and this will raise prices. Show Answer Correct Answer: A) Jobs might be lost in existing national businesses. ← 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