This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Economics – Quiz 43 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Economics Quiz 43 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Exports minus imports or how many goods a county exports versus imports A) Exports. B) Subsidy. C) Quotas. D) Balance of Trade. Show Answer Correct Answer: D) Balance of Trade. 2. Each country has new infant industry to promote. The reason for the infant industry argument is to ..... A) Control money supply in the economy. B) Protect new industries from the establishment of foreign competitors. C) Avoid structural unemployment. D) Reduce the inflation problem. Show Answer Correct Answer: B) Protect new industries from the establishment of foreign competitors. 3. Which of the following is NOT a beneficial effect of direct investment on the Home country? A) Transfer of technology. B) Higher profits. C) Risk diversification. D) Avoids the possible loss of export markets. Show Answer Correct Answer: A) Transfer of technology. 4. A tax on an imported good is called a? A) Quota. B) Barrier. C) Tariff. D) Standard. Show Answer Correct Answer: C) Tariff. 5. In trade, dumping can be defined as: A) The selling of a good in another country at a price below its unit cost of production. B) Artificially keeping a country's currency below market value. C) The use of protectionist measures to protect domestic employment. D) The use of administrative barriers to limit imports. Show Answer Correct Answer: A) The selling of a good in another country at a price below its unit cost of production. 6. Ecotourism is-responsible travel natural areas that conserve the environment and improves the well being of the locals. A) True. B) False. Show Answer Correct Answer: A) True. 7. One potential advantage for a country of encouraging a multinational business to set up is that it will: A) Always create more jobs than might be lost. B) Keep all of the profits made within the country. C) Not compete with the existing national businesses. D) Pay taxes to the government. Show Answer Correct Answer: D) Pay taxes to the government. 8. Interest income remains..... A) Current Account-Credit Side On the credit side of the current account. B) Current Account-Credit Side On the debit side of the current account. C) Capital Account-Credit Side On the credit side of the capital account. D) Capital Account-Borrowing Side The borrowing side of the capital account. Show Answer Correct Answer: A) Current Account-Credit Side On the credit side of the current account. 9. An import is A) Producing certain goods very well and for a reduced cost. B) Items sold to other countries. C) Dependence on others to get products you do not produce and needing to purchase items from them. D) Items purchased from other countries. Goods come into the USA. Show Answer Correct Answer: D) Items purchased from other countries. Goods come into the USA. 10. The measure of how much one currency is worth in relation to another. A) Change rate. B) Exchange rate. Show Answer Correct Answer: B) Exchange rate. 11. International trade concerns: A) Trade in goods and services. B) Migrations. C) Foreign direct investments. D) All above. Show Answer Correct Answer: A) Trade in goods and services. 12. ..... is a decrease in the value of a currency as measured by the amount of foreign currency it can buy. A) Depreciation. B) Exchange rates. C) Subsidy. D) Appreciation. Show Answer Correct Answer: A) Depreciation. 13. What is another term for trade between nations? A) Free trade. B) International trade. C) Voluntary trade. D) Trade barrier. Show Answer Correct Answer: B) International trade. 14. Name one important component of international economics. A) International balance of trade. B) International cash balance. C) Exchange rate. D) Export-import ratio. Show Answer Correct Answer: A) International balance of trade. 15. Given the same amount of resources, if a country can produce more of particular commodities compared to another country, that country is said to have ..... A) Productive advantage. B) An absolute advantage. C) A comparative advantage. D) Ratio of export price index to import price index. Show Answer Correct Answer: B) An absolute advantage. 16. An increase in the exchange value of one nation's currency in terms of currency of another nation's is called ..... A) Depreciation of currency. B) Appreciation of currency. Show Answer Correct Answer: B) Appreciation of currency. 17. ..... terms of trade is calculated by multiplying the commodity terms of trade index by productivity changes in domestic export industries A) Gross Barter. B) Double Factoral. C) Single Factoral. D) None of above. Show Answer Correct Answer: C) Single Factoral. 18. One reason country's choose to undervalue their currency is: A) Downward pressure on inflation. B) Greater employment in export industries. C) More imports can be bought. D) None of above. Show Answer Correct Answer: B) Greater employment in export industries. 19. An increase in the value of a currency relative to another A) Currency Appreciation. B) Currency Depreciation. C) Exchange Rates. D) Subsidy. Show Answer Correct Answer: A) Currency Appreciation. 20. The world has experienced four significant periods of globalization A) True. B) False. Show Answer Correct Answer: B) False. ← 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