This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Economics – Quiz 47 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Economics Quiz 47 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A type of trade restriction that sets a physical limit on the quantity of a good that can be imported into a country in a given period of time. A) Subsidy. B) Quota. C) Embargo. D) Tariff. Show Answer Correct Answer: B) Quota. 2. A tariff is a form of taxation on foreign products while a quota is a ..... on imports from foreign countries. A) Boost. B) Increase. C) Limit. D) Rise. Show Answer Correct Answer: C) Limit. 3. Country A exports 10% more goods than it imports. By contrast, country B imports 15% more than it exports. Which statement is TRUE? A) Country A has a favorable balance of trade, but country B has an unfavorable balance of trade. B) Country B has a favorable balance of trade, but country A has an unfavorable balance of trade. C) Country A has a comparative advantage over country B. D) Country B must rely on foreign aid from country A. Show Answer Correct Answer: A) Country A has a favorable balance of trade, but country B has an unfavorable balance of trade. 4. Tariffs, quotas, embargoes, and any other regulation or policy that restricts international trade A) Trade barriers. B) Free trade enablers. C) Open trade policies. D) Closed trade policies. Show Answer Correct Answer: A) Trade barriers. 5. Improvements in technology for producing all goods must result in: A) An inward shift in the production possibilities curve. B) A flatter production possibilities curve. C) An outward shift in the production possibilities curve. D) A steeper production possibilities curve. Show Answer Correct Answer: C) An outward shift in the production possibilities curve. 6. The price of one currency in terms of other currency is called ..... A) Foreign exchange rate. B) Flexible rate of exchange. C) Current rate of exchange. D) None of the above. Show Answer Correct Answer: A) Foreign exchange rate. 7. Comparative advantage is an economy's ability to produce a particular good or service at a ..... opportunity cost than its trading partners. A) Lower. B) Higher. C) Similar. D) Different. Show Answer Correct Answer: A) Lower. 8. If there is a fixed rate tax taken, such as social security, from everyone's pay check. What type of tax would this be? A) Regressive. B) Proportional. C) Progressive. D) Property. Show Answer Correct Answer: B) Proportional. 9. Which of the following is not an argument for free trade, but against? A) Common currency. B) Protecting national security. C) Reducing trade barriers. D) Facilitate trade among members. Show Answer Correct Answer: A) Common currency. 10. The ability to produce something using fewer resources than other producers is called having the ..... A) Absolute Advantage. B) Comparative Advantage. C) Better Advantage. D) Competitive Advantage. Show Answer Correct Answer: A) Absolute Advantage. 11. A situation in which a nation exports more goods and services than it imports. A) Balance of Payments. B) Trade Surplus. C) Trade Deficit. D) Balance of Trade. Show Answer Correct Answer: B) Trade Surplus. 12. What is the theme song for international trade? A) Randy Newman, "You Got a Friend In Me". B) The Rembrandts, "I'll Be There For You". C) Biz Markie, "Just a Friend". D) Dionne Warwick, Elton John, Gladys Knight & Stevie Wonder, "That's What Friends Are For". Show Answer Correct Answer: D) Dionne Warwick, Elton John, Gladys Knight & Stevie Wonder, "That's What Friends Are For". 13. NOT argument for free trade A) Domestic job security. B) National economic security. C) Infant industries. D) Open competition. Show Answer Correct Answer: D) Open competition. 14. Trade bloc:United States, Canada, and Mexico A) European Union. B) ASEAN. C) NAFTA. D) None of above. Show Answer Correct Answer: C) NAFTA. 15. The first SAARC summit was held in 1985 in ..... A) Dhaka. B) Bangalore. C) Kathmandu. D) Male. Show Answer Correct Answer: A) Dhaka. 16. When an exchange rate of a currency depreciates, the following will be likely to happen: A) Import prices will fall and export prices will rise. B) Export sales will fall and import purchases will increase. C) Export prices will fall and import prices will rise. D) Prices of all products will not change. Show Answer Correct Answer: C) Export prices will fall and import prices will rise. 17. Trade between two countries can be useful if cost ratios of goods are: A) Undetermined. B) Decreasing. C) Equal. D) Different. Show Answer Correct Answer: D) Different. 18. The figure illustrates the international movement of capital. When there is international movement of capital in both Nations, how does the yield for Nation 1's owners of noncapital factors change? A) Lose CNEG. B) Gain CNEG. C) Lose CNRG. D) Gain CNRG. Show Answer Correct Answer: A) Lose CNEG. 19. Which of the following does NOT play a role in Georgia's economy? A) Northeast Inland Port. B) Northwest Outland Port. C) Port of Savannah. D) Port of Brunswick. Show Answer Correct Answer: B) Northwest Outland Port. 20. An argument that cites the importance of maintaining industries critical to the country even when the industry cannot efficiently compete at the international level. A) Domestic Employment. B) Infant Industries. C) Free Trade. D) National Security. Show Answer Correct Answer: D) National Security. ← 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