This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Economics – Quiz 40 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Economics Quiz 40 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A tax on imports A) Tariff. B) Import tax. C) Supply. D) Embargo. Show Answer Correct Answer: A) Tariff. 2. Trade must be ..... and ..... A) Unvoluntary and benefitcial. B) Voluntary and Non-fradulent. C) On purpose and timely. D) Benefit both parties and be quick. Show Answer Correct Answer: B) Voluntary and Non-fradulent. 3. How much is 60 dollars in Rupees? One U.S. Dollar in FC One FC in U.S. Dollars Indian Rupee 52.02 .0192 A) 1.15 rupees. B) 3121.2 rupees. C) .99 rupees. D) 2709.38 rupees. Show Answer Correct Answer: B) 3121.2 rupees. 4. Who proposed that a country produces and exports the product in which it has comparative advantage. A) Ricardo. B) Poiner. C) Ohlin. D) Smith. Show Answer Correct Answer: A) Ricardo. 5. What is the USMCA? A) Trade bloc consisting of the United States, Mexico and Canada. B) Trade bloc between European countries. C) An exchange rate between American currency and Canadian currency. D) The balance of trade between Canada an Mexico. Show Answer Correct Answer: A) Trade bloc consisting of the United States, Mexico and Canada. 6. A country can have an increased surplus in its balance of trade as a result of A) An increase in domestic inflation. B) Declining imports and rising exports. C) Higher tariffs imposed by its trading partners. D) An increase in capital inflow. E) An appreciating currency. Show Answer Correct Answer: B) Declining imports and rising exports. 7. Which trade barrier is implemented when countries have strong political disputes or disagreements? (Example:The United States and Cuba) A) Standards. B) Quota. C) Embargo. D) Tariff. Show Answer Correct Answer: C) Embargo. 8. Many workers have moved across borders, and jobs have shifted to emerging markets A) True. B) False. Show Answer Correct Answer: A) True. 9. Nontariff trade barriers could include all of the following except A) Domestic content laws. B) Government procurement policies. C) Health, safety, and environmental standards. D) Antidumping/countervailing duties applied to imports. Show Answer Correct Answer: D) Antidumping/countervailing duties applied to imports. 10. Labor, human capital, entrepreneurship, natural resources, and capital are all examples of which of the following? A) Outputs. B) Substitutes in Production. C) Absolute Advantage. D) Factors of Production. Show Answer Correct Answer: D) Factors of Production. 11. Terms of trade is defined as A) A statistic that measures the weighted average of export prices. B) An index that measures the terms of trade in a nation. C) A statistic that measures the weighted average of export prices divided by import prices. D) A statistic that measures the ratio of exports to import. Show Answer Correct Answer: C) A statistic that measures the weighted average of export prices divided by import prices. 12. Group of countries that join together to trade as if they were a single country. A) Trading bloc. B) Trade policy. C) NAFTA. D) Trade agreement. Show Answer Correct Answer: A) Trading bloc. 13. A reason why some countries use fixed exchange rates-often set at low values is so A) Exports are encouarged and imports made more expensive. B) To improve their budget surplus. C) To allow investment in capital infrastructure. D) All of these options. Show Answer Correct Answer: A) Exports are encouarged and imports made more expensive. 14. Country "A" can produce 12 cars or 8 computers. Country "B" can produce 15 cars or 5 computers. Which country has the absolute advantage in terms of cars? A) Country "A". B) Country "B". C) Neither. D) Both. Show Answer Correct Answer: B) Country "B". 15. A law that cuts off most or all trade with a specific country. A) Quota. B) Voluntary Export Restraint. C) Embargo. D) Protective Tariff. Show Answer Correct Answer: C) Embargo. 16. A depreciation of a country's currency means for this country's residents that imported goods are A) Cheaper. B) More expensive. Show Answer Correct Answer: B) More expensive. 17. Nations that are the target of embargoes are forced to deal with which of the following? A) Falling prices. B) Lower tariffs. C) Increased scarcity. D) More foreign competition. Show Answer Correct Answer: C) Increased scarcity. 18. What is meant by opportunity cost in the law of comparative advantage? A) Costs incurred to produce certain goods or services. B) Costs incurred to produce any type of good or service. C) Costs that must be borne when not producing certain goods or services. D) Costs that must be borne when not producing all types of goods or services. E) Costs that must be borne when producing certain goods or services. Show Answer Correct Answer: C) Costs that must be borne when not producing certain goods or services. 19. Embargoes, tariffs, and quotas are examples of A) Trading blocs. B) Trade barriers. C) Free trade. D) Exchange rates. Show Answer Correct Answer: B) Trade barriers. 20. The study for how people's needs and wants are provided is ..... A) Scarcity. B) Mixed. C) Economics. D) Enterprise. Show Answer Correct Answer: C) Economics. ← 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