This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Economics – Quiz 51 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Economics Quiz 51 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Taiwanese baseballs sell in the US for $ 10, but an identical domestically made one sells for $ 12.50. If the US government imposes a 20% tariff on Taiwanese baseballs, what would be the result? A) Since the Taiwanese ball would still be cheaper, there would be little to no change. B) Since the Taiwanese ball is now more expensive, US sales will likely increase. C) Since the Taiwanese ball will now sell at the same price as the US ball, sales will likely equalize. D) Since the Taiwanese ball is now more expensive, the US will begin exporting balls to Taiwan. Show Answer Correct Answer: A) Since the Taiwanese ball would still be cheaper, there would be little to no change. 2. A problem encountered when implementing an "infant industry" tariff is that A) Domestic consumers will purchase the foreign good regardless of the tariff. B) The industry may never "mature.". C) Most industries require tariff protection when they are mature. D) The tariff may hurt the industry's domestic sales. Show Answer Correct Answer: B) The industry may never "mature.". 3. A feasible effect of international trade is that a A) Monopoly in the home market becomes an oligopoly in the world market. B) Oligopoly in the home market becomes an monopoly in the world market. C) Purely competitive firm in the home market becomes an oligopolist. D) Purely competitive firm in the home market becomes a monopolist. Show Answer Correct Answer: A) Monopoly in the home market becomes an oligopoly in the world market. 4. Prices at which currencies are traded is called ..... A) Exchange Currency. B) Exchange Rate. C) Foreign Exchange Market. D) Local Currency Demand. Show Answer Correct Answer: B) Exchange Rate. 5. Trade balance and balance of payment experience a ..... condition if the local currency is overvalued. A) Worse. B) Good. Show Answer Correct Answer: A) Worse. 6. What is the impact of a quota on imported goods? A) Government tariff revenues will increase. B) Prices will decrease. C) Employment will increase. D) There will be efficiency gains. Show Answer Correct Answer: C) Employment will increase. 7. Putting policies in place that are designed to protect domestic industries from too much foreign competition. A) Protectionism. B) Patriotism. C) Economic stabalism. D) Free trade. Show Answer Correct Answer: A) Protectionism. 8. In order to protect domestic producers, countries may ..... trade barriers. A) Increase. B) Decrease. Show Answer Correct Answer: A) Increase. 9. Which one does not restrict international trade? A) Quota. B) Subsidies. C) Embargoes. D) Trade Deficits. Show Answer Correct Answer: D) Trade Deficits. 10. What is a tariff? 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: C) A tax placed on imports. 11. This is an economic and political union between 27 European countries? A) USMCA. B) Association of Southeast Asian Nations (ASEAN). C) European Union (EU). D) Port of Savannah. Show Answer Correct Answer: C) European Union (EU). 12. Today, roughly ..... million people live in the countries other than the one in which they were born: A) 190. B) 100. C) 500. D) 50. Show Answer Correct Answer: A) 190. 13. Which of these does *NOT* impact the international trade for every nation A) Exports on Price and Quantity. B) Imports on Price and Quantity. C) Trade Affecting Employment. D) Trade Affecting International Affairs. Show Answer Correct Answer: D) Trade Affecting International Affairs. 14. A restriction on the quantity of a good that can be imported into a country is a(n): A) Tariff. B) Quota. C) Embargo. D) Restricted exchange rate. Show Answer Correct Answer: B) Quota. 15. A Chinese company sells $ 1 million worth of socks to the U.S. army. A) Credit. B) Debit. Show Answer Correct Answer: B) Debit. 16. Top 5 countries to which Australia sends it's exports: A) China, Japan, Republic of Korea, USA, India. B) China, Japan, New Zealand, USA, India. C) China, Japan, Republic of Korea, Singapore, India. D) China, Japan, USA, Republic of Korea, India. Show Answer Correct Answer: A) China, Japan, Republic of Korea, USA, India. 17. What is not a part of the Current Account Balance A) Buying firms. B) Net Income Flows. C) Net Transfers. D) Balance of trade in goods and services. Show Answer Correct Answer: A) Buying firms. 18. In the Customs Union A) All foreign tariffs are replaced by a single domestic tariff. B) All internal and external tariffs are replaced by a single tariff. C) All external tariffs are replaced by a single external tariff. D) All internal tariffs are replaced by a single external tariff. Show Answer Correct Answer: D) All internal tariffs are replaced by a single external tariff. 19. A ..... is a type of protectionist 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) Trade. B) Trade Barrier. C) Tariff. D) Quota. Show Answer Correct Answer: D) Quota. 20. One possible disadvantage to businesses of globalisation is that: A) All products will become more expensive. B) There will be more international competition. C) There will be less choice and variety for their consumers. D) They will tend to produce on a small scale and this will raise costs. Show Answer Correct Answer: B) There will be more international competition. ← 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