This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Economics – Quiz 4 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Economics Quiz 4 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following would decrease the demand for A$ by the Japanese A) A fall in their unemployment. B) Increased Japanese exports of steel and cars. C) Decreased Japanese imports of iron ore. D) A free trade agreement between Japan and Australia. Show Answer Correct Answer: C) Decreased Japanese imports of iron ore. 2. If Malaysia increases the tariff on imported cars, this will ..... A) Decrease the amount of cars imported. B) Increase the amount of cars imported. C) Decrease the amount of cars imported and increase the production of cars in Malaysia. D) Increase the amount of cars imported and increase the production of cars on Malaysia. Show Answer Correct Answer: C) Decrease the amount of cars imported and increase the production of cars in Malaysia. 3. Which of the following will cause the tariff equivalent of a quota to increase in a small country? A) A decrease in domestic demand (the demand curving shifting left). B) A decrease in domestic supply (the supply curving shifting left). C) A rise in the world price. D) A rise in the quantity of imports permitted by the quota. Show Answer Correct Answer: B) A decrease in domestic supply (the supply curving shifting left). 4. Specifications that products may have to meet for various purposes such as health, safety or compatibility are called? A) Embargo. B) Tariff. C) Standards. D) Quota. Show Answer Correct Answer: C) Standards. 5. Internal trade is also called as A) Home trade. B) Domestic trade. C) Inter-regional trade. D) All the above. Show Answer Correct Answer: D) All the above. 6. ..... terms of trade promote rapid economic development of an underdeveloped country. A) Favorable. B) Unfavorable. Show Answer Correct Answer: A) Favorable. 7. If the international value of the United States dollar depreciates in comparison with the Japanese yen, which of the following is most likely to occur? A) United States exports to Japan will increase. B) The United States government will increase the tariff on Japanese imports. C) The United States balance-of-trade deficit with Japan will become even larger. D) United States tourists can be expected to visit Japan in greater numbers. E) Trade between the United States and Japan will not be affected. Show Answer Correct Answer: A) United States exports to Japan will increase. 8. Trading blocs, such as NAFTA and the EU, increase trade between their member countries by ..... trade barriers. A) Increasing. B) Decreasing. Show Answer Correct Answer: B) Decreasing. 9. External economies of scale arise when the cost per unit ..... A) Rises as the industry grows larger and falls as the average firm grows larger. B) Falls as the industry grows larger and rises as the average firm grows larger. C) Falls as the industry and the average firm grows larger. D) Remains constant over a broad range of output. E) Rises as the industry and the average firm grows larger. Show Answer Correct Answer: B) Falls as the industry grows larger and rises as the average firm grows larger. 10. If the United States has a balance of trade deficit with China, it means that A) The U.S. imports more products from China than it exports to China. B) The U.S. exports more products to China than it imports from China. C) U.S. dollars are more valuable in China than the Chinese currency is in the U.S. D) American companies are investing more in their operations in China than China is investing in the United States. Show Answer Correct Answer: A) The U.S. imports more products from China than it exports to China. 11. If the tariff on computers is not changed, but the government then adds hitherto nonexistent tariffs on imported semi-conductor components, then the effective rate of protection in the computer industry will A) Increase. B) Decrease. C) Remain the same. D) No longer apply. Show Answer Correct Answer: B) Decrease. 12. Suppose that in one week Sam can knit 5 sweaters or make 4 blankets and Rob can knit 10 sweaters or make 6 blankets. Which of the following is true? A) Sam has an absolute advantage in making blankets. B) Sam has neither a comparative nor an absolute advantage in knitting sweaters or making blankets. C) Sam has a comparative advantage in making blankets. D) Sam has a comparative advantage in knitting sweaters. Show Answer Correct Answer: C) Sam has a comparative advantage in making blankets. 13. The price of one country's currency express in terms of another country's currency A) Currency. B) Exchange rate. C) Capstone. D) None of above. Show Answer Correct Answer: B) Exchange rate. 14. What is an embargo? A) A government order to stop trade. B) A limit placed on imports. C) A tax placed on imports. D) None of above. Show Answer Correct Answer: A) A government order to stop trade. 15. Current International Economic Problemsand Challenges does not include: A) Slow Growth and High Unemployment in Advanced Economies after "the Great Recession". B) Trade Protectionism in Advanced Countries. C) Structural Imbalances in Advanced Economies. D) Narrowing down Poverty in Many Developing Countries. Show Answer Correct Answer: D) Narrowing down Poverty in Many Developing Countries. 16. Total value of goods and services in a country for a specific time period. A) Gross National Income (GNI). B) Per capita income. C) Gross Domestic Product. D) Gross National Happiness. Show Answer Correct Answer: C) Gross Domestic Product. 17. An export can be defined as any product that is: A) Made from goods bought from another country. B) Sold to another country. C) Bought from another country. D) Made in another country. Show Answer Correct Answer: B) Sold to another country. 18. Which group benefits when the US dollar depreciates against other currencies? A) Foreign citizens vacationing in the U.S. B) U.S. citizens buying foreign goods and services. C) U.S. citizens traveling in foreign countries. D) Foreign governments with U.S. treasury bonds. Show Answer Correct Answer: C) U.S. citizens traveling in foreign countries. 19. Special taxes place on products imported from another country. A) Quotas. B) Tariffs. C) Subsidies. D) Sanctions. Show Answer Correct Answer: B) Tariffs. 20. Currency depreciation could be caused by A) Supply Increase or Demand Increase. B) Supply Increase or Demand Decrease. C) Supply Decrease or Demand Decrease. D) Supply Decrease or Demand Increase. Show Answer Correct Answer: B) Supply Increase or Demand Decrease. ← PreviousNext →Related QuizzesEconomics QuizzesInternational Economics Quiz 1International Economics Quiz 2International Economics Quiz 3International Economics Quiz 5International Economics Quiz 6International Economics Quiz 7International Economics Quiz 8International Economics Quiz 9International Economics Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books