This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Economics – Quiz 44 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Economics Quiz 44 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The US and Canada have been experiencing a conflict over US restrictions on imported softwood lumber. Who would be MOST LIKELY to support the US restrictions? A) Canadian lumber firms. B) US new home buyers. C) US lumber importers. D) US lumber firms. Show Answer Correct Answer: D) US lumber firms. 2. Which statement BEST reflects the difference between tariffs and quotas? A) Tariffs raise prices on exports, while quotas set limits on imports. B) Tariffs raise prices on imports, while quotas set limits on exports. C) Tariffs raise prices on exports, while quotas set limits on exports. D) Tariffs raise prices on imports, while quotas set limits on imports. Show Answer Correct Answer: D) Tariffs raise prices on imports, while quotas set limits on imports. 3. The exchange of goods and services by sale or barter driven by the need for resources. A) Fair Trade. B) Globalization. C) Trade. D) Standard of Living. Show Answer Correct Answer: C) Trade. 4. The concept of comparative advantage makes the assumption that everyone will be better off ..... A) Producing enough of a specific final good to export. B) Producing the products they produce relatively best. C) Producing enough of a good to consume domestically with enough to export. D) Producing only products they can produce with greater output than any other country. Show Answer Correct Answer: B) Producing the products they produce relatively best. 5. As the U.S. dollar becomes weaker, it takes ..... foreign currency to equal one dollar. A) More. B) Less. Show Answer Correct Answer: B) Less. 6. The least or smallest amount A) Most. B) Maximum. C) Minimum. D) Median. Show Answer Correct Answer: C) Minimum. 7. Comparative Advantage is the theory: A) A scenario in which one country can manufacture a product at a higher quality and a faster rate for a greater profit than another competing country. B) A condition or circumstance that puts a country in a favourable or superior trade position for example resource endowment. C) Economy's ability to produce goods and services at a lower opportunity cost than that of trade partners. D) An economic theory where the government seeks to regulate the economy and trade in order to promote domestic industry. Show Answer Correct Answer: C) Economy's ability to produce goods and services at a lower opportunity cost than that of trade partners. 8. The differences between domestic trades an international trade is as follows EXCEPT ..... A) There is greater specialization in international trade than in domestic trade. B) Trade documentation is simpler in domestic trade than in international trade. C) There are less trade barriers in international trade than domestic trade. D) Different currencies are used in international trade. Show Answer Correct Answer: A) There is greater specialization in international trade than in domestic trade. 9. The value of a nations currency in relation to a foreign currency. A) Equilibrium Rate. B) Export Rate. C) Exchange Rate. D) Import Rate. Show Answer Correct Answer: C) Exchange Rate. 10. NAFTA is a trade agreement between which of the following countries? A) The United States, Cuba, and Brazil. B) The United States, Canada, and Mexico. C) The United States, Puerto Rico, and Cuba. D) Brazil, Bolivia, Peru, and Columbia. Show Answer Correct Answer: B) The United States, Canada, and Mexico. 11. Promotes free trade within the 28 European member countries. A) NAFTA. B) ASEAN. C) EU. D) Free Trade. Show Answer Correct Answer: C) EU. 12. What happens if a quota has been keeping the domestic price above the world price, but then the world price rises above what has been the domestic price? A) The country begins to export the good. B) The tariff-equivalent of the quota becomes negative. C) Quota rents become zero. D) The domestic price rises above the world price, to keep the tariff-equivalent of the quota constant. Show Answer Correct Answer: C) Quota rents become zero. 13. How is foreign investment different from domestic investment? A) The investors are foreigners. B) There are complicated factors including legal systems, customs, transportation, etc. across borders. C) Exchange rate is involved. D) Open market creates a less intensively competitive environment. Show Answer Correct Answer: D) Open market creates a less intensively competitive environment. 14. A trade surplus is generally known as a A) Positive balance of trade. B) Negative balance of trade. C) Positive balance of payments. D) Negative balance of payments. Show Answer Correct Answer: A) Positive balance of trade. 15. This trade barrier limits the number of products that can be brought into a country. A) Tariff. B) Quota. C) Embargo. D) Subsidy. Show Answer Correct Answer: B) Quota. 16. A government policy or restriction that limits international trade is known as a? A) Quora. B) Trade barrier. C) Subsidy. D) Standards. Show Answer Correct Answer: B) Trade barrier. 17. No trade is allowed with a certain country A) Tariff. B) Import Quota. C) Embargo. D) None of them. Show Answer Correct Answer: C) Embargo. 18. Those in favor protectionist trade policies would MOST likely A) Support a rediction in tariffs. B) Argue against trade barriers. C) Argue for trade barriers. D) Believe that trade restrictions harm consumers. Show Answer Correct Answer: C) Argue for trade barriers. 19. In the study of international economics A) International trade policies are examined before bases for trade. B) Adjustment policies are discussed before the balance of payments. C) The case of many nations is discussed before the two-nation case. D) None of above. Show Answer Correct Answer: D) None of above. 20. Which of the following is a top 5 export for Australia A) Education and Coal. B) Tourism and Motor Vehicles. C) Coal and Machinery. D) Education and Electrical Equipment. Show Answer Correct Answer: A) Education and Coal. ← 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