This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Economics – Quiz 52 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Economics Quiz 52 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Currency swap is a method of ..... A) Hedging against foreign exchange risk. B) Speculating in foreign exchange. C) Import. D) Export. Show Answer Correct Answer: A) Hedging against foreign exchange risk. 2. When was World Bank established? A) Dec 1945. B) Mar 1947. C) Apr 1945. D) Jan 1947. Show Answer Correct Answer: A) Dec 1945. 3. Globalisation is best defined as A) Increased international trade as a result of free movement of goods and capital between countries. B) A situation where all of the world uses the same common currency. C) The growing trend for companies to stop making products within their own country. D) The increase in the world tourist industry leading to more global travel. Show Answer Correct Answer: A) Increased international trade as a result of free movement of goods and capital between countries. 4. If the value of a currency in a fixed exchange rate system is raised, it is called: A) Appreciation. B) Depreciation. C) Revaluation. D) Devaluation. Show Answer Correct Answer: C) Revaluation. 5. If a foreign mining company establishes a coal mine in Queensland, the likely impact on the Circular Flow of Income Model for Australia would be: A) An increase in Australia's unemployment rate and an increase in business investment. B) A decrease in Australia's unemployment rate and an increase in business investment. C) An increase Australia's unemployment rate and a decrease in business investment. D) A decrease in Australia's unemployment rate and a decrease in business investment. Show Answer Correct Answer: B) A decrease in Australia's unemployment rate and an increase in business investment. 6. Goods often come from abroad or contain imported parts. A) True. B) False. Show Answer Correct Answer: A) True. 7. Gains from trade can be decomposed into: A) Gains from stability and exchange. B) Gains from terms of trade and inflation. C) Gains from exchange and gains from specialisation. D) None of these. Show Answer Correct Answer: C) Gains from exchange and gains from specialisation. 8. Which of the following will shift the aggregate demand curve to the right? A) A report that corporate earnings were lower than expected. B) An increase in interest rates caused by a tightening of monetary policy. C) Increased imports caused by appreciation of the dollar. D) Increased spending by businesses on computers. E) An increase in the government's budget surplus. Show Answer Correct Answer: D) Increased spending by businesses on computers. 9. Which is NOT a cost of Trade Barriers A) Lower demand for goods. B) Increased prices on imports. C) Fewer product choices & less competition. D) Increased demand for domestic goods. Show Answer Correct Answer: D) Increased demand for domestic goods. 10. If the U.S. government disagrees with a foreign country's politics and wants to prevent trading with that country, the most effective action the U.S. government can take is to A) Place high tariffs on all goods from that country. B) Place an embargo on all goods from that country. C) Enforce safety standards on all goods from that country. D) Enforce a quota on all goods shipped from that country. Show Answer Correct Answer: B) Place an embargo on all goods from that country. 11. One argument against NAFTA A) Lower prices of goods. B) Outsources jobs to outside countries. C) Increase competition. D) Economic growth. Show Answer Correct Answer: B) Outsources jobs to outside countries. 12. These companies these companies provide services A) Primary sector. B) Secondary sector. C) Tertiary sector. D) None of above. Show Answer Correct Answer: C) Tertiary sector. 13. What is the purpose of the world Trade Organisation? A) To restrict and limit international trade. B) To regulate and control global trade. C) To promote and facilitate international trade. D) To encourage and support domestic trade. Show Answer Correct Answer: C) To promote and facilitate international trade. 14. To avoid a quota or a tariff, a country may choose to limit an export. A) Quota. B) Voluntary Export Restraint. C) Import. D) Protective Tariff. Show Answer Correct Answer: B) Voluntary Export Restraint. 15. According to factor proportions theory, factors that were in great supply relative to demand would be cheaper. A) YES. B) NO. Show Answer Correct Answer: A) YES. 16. The value of the U.S. Dollar appreciates versus the Mexican Peso. Who is hurt? A) An American tourist traveling in Mexico. B) An American producer who exports to Mexico. C) A Mexican firm who imports products from the U.S. D) No one benefits. Show Answer Correct Answer: A) An American tourist traveling in Mexico. 17. In 2014, India was in the top of the countries with the ..... percentage of account holders. A) Lowest. B) Highest. C) Modest. D) Largest. Show Answer Correct Answer: A) Lowest. 18. Which country has an absolute advantage in rice production? A) Vietnam. B) Mexican. Show Answer Correct Answer: A) Vietnam. 19. Which of the following best explains the terms of trade for an economy? A) The prices of exports compared to the volume of exports. B) The difference between export income and export expenditure. C) The ratio of export income to import expenditure. D) The prices of exports compared to the prices of imports. Show Answer Correct Answer: D) The prices of exports compared to the prices of imports. 20. The figure illustrates the international movement of capital. When there is international movement of AB of capital in both Nations, what is the incorrect statement for Nation 1? A) The return on capital in two nations equalizes at BE=O1N=O2T. B) The return on investment is ABER. C) The loss of capital owners is CNRG. D) The increase in total product is ERG. Show Answer Correct Answer: C) The loss of capital owners is CNRG. ← 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