This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Economics – Quiz 54 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Economics Quiz 54 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A tax on goods bought from another country A) Tariff. B) Import Quota. C) Embargo. D) None of them. Show Answer Correct Answer: A) Tariff. 2. The balance of payment is composed of the capital account, official reserve account and ..... A) Aggregate account. B) Current account. C) Basic account. D) Service account. Show Answer Correct Answer: B) Current account. 3. How many areas did the RBI hand over to NPCI the responsibility of finding solutions in? A) 2. B) 3. C) 4. D) 5 . Show Answer Correct Answer: B) 3. 4. A quota..... A) Lets limitless imports into the country. B) Sets a limit on imports coming into the country. C) Lets limitless exports leave the country. D) Sets limits on exports leaving the country. Show Answer Correct Answer: B) Sets a limit on imports coming into the country. 5. George can dust a room in 20 minutes and mop a room in 30 minutes. Ben can dust a room in 25 minutes and mop a room in 25 minutes. Who has absolute advantage in dusting? A) Ben. B) Ben & George. C) George. D) No one. Show Answer Correct Answer: C) George. 6. When an exchange rate of a currency depreciates it means that: A) One unit of it buys more of a foreign currency than before. B) The price level in that country has fallen. C) One unit of it buys less of a foreign currency than before. D) The country's exports will become more expensive. Show Answer Correct Answer: C) One unit of it buys less of a foreign currency than before. 7. Japan claims that the snow in Japan is different from other places. Because of this, their laws prevent skis from being imported into the country unless they meet specific standards. This is called a A) Tariff. B) Quota. C) Standard-based trade barrier. D) Non-trade-related restriction. Show Answer Correct Answer: C) Standard-based trade barrier. 8. Developing nations often maintain that industrial countries permit raw materials to be imported at very low tariff rates while maintaining high tariff rates on manufactured imports. Which of the following refers to the above statement? A) Tariff-quota effect. B) Nominal tariff effect. C) Tariff escalation effect. D) Protective tariff effect. Show Answer Correct Answer: C) Tariff escalation effect. 9. The ability of an individual, firm, or country to produce a good or service at a lower opportunity cost than other producers. A) Absolute Advantage. B) Comparative Advantage. C) Monopoly. D) Governmental Advantages. Show Answer Correct Answer: B) Comparative Advantage. 10. Developing countries are called developing because they have: A) Fewer languages than developed countries. B) Smaller populations than developed countries. C) Larger populations than developed countries. D) Lower incomes than developed countries. Show Answer Correct Answer: D) Lower incomes than developed countries. 11. Limit the flow of goods, services, and productive resources between countries. A) Trade surplus. B) Trade barriers. C) Balance of trade. D) None of above. Show Answer Correct Answer: B) Trade barriers. 12. Inter-regional specialization leads to large production in all the countires A) True. B) False. Show Answer Correct Answer: A) True. 13. The US and Canada have been experiencing a conflict over the US quota on imported softwood lumber. Which of the following groups would be MOST LIKELY to support the US restrictions? A) Canadian lumber firms. B) U.S. new home buyers. C) U.S. lumber importers. D) U.S. lumber firms. Show Answer Correct Answer: D) U.S. lumber firms. 14. All of the following are gains from trade, EXCEPT: A) Lower prices for consumers. B) A more efficient allocation of resources. C) Greater choices for consumers. D) Protection of domestic jobs. Show Answer Correct Answer: D) Protection of domestic jobs. 15. The comparative advantage model of Ricardo was based on A) Intraindustry specialization and trade. B) Interindustry specialization and trade. C) Demand conditions underlying specialization and trade. D) Income conditions underlying specialization and trade. Show Answer Correct Answer: B) Interindustry specialization and trade. 16. ..... are profits that accrue to whomever has the right to import the good that is restricted by the quota A) Quota license. B) Quota rents. C) Quota prices. D) None of the above. Show Answer Correct Answer: B) Quota rents. 17. A country that can produce a good using fewer resources than another country has a(n): A) Lower opportunity cost of producing the good than another country. B) Absolute advantage. C) Specialization in the production of the good. D) All of these. Show Answer Correct Answer: B) Absolute advantage. 18. The rate at which goods are exchanged at the international is defined as ..... A) Term of trade. B) The exchange rate. C) An absolute advantage. D) A comparative advantage. Show Answer Correct Answer: B) The exchange rate. 19. Country "C" can produce shirt in 30 minutes or 1 chair in 60 minutes. Country "D" can produce a shirt in 45 minutes or 1 chair in 45 minutes. Which country has the absolute advantage in terms of shirts? A) Country "C". B) Country "D". C) Neither. D) Both. Show Answer Correct Answer: A) Country "C". 20. A set of notarial measures aimed at limiting the volume of export and import in the form of a quantity or amount during a certain period: A) License;. B) Subsidy. C) Quota. D) Advalor fight. Show Answer Correct Answer: C) Quota. ← 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