This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Economics – Quiz 55 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Economics Quiz 55 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Nation that operates in a state of self-reliance and is characterised by self-sufficiency and limited (or no) trade with global partners. A) Developing country. B) Central planning economy. C) Autarky. D) Colonies. Show Answer Correct Answer: C) Autarky. 2. The state of being unemployed or without a job, but available to work A) Proponents. B) Unemployment. C) Poverty. D) Employer. Show Answer Correct Answer: B) Unemployment. 3. The definition of the exchange rate of a currency is: A) The price level in the country. B) The rate at which imports can be bought from export revenue. C) The price of one currency in terms of how much it buys of another. D) The price of a currency in terms of the goods that can be bought with it. Show Answer Correct Answer: C) The price of one currency in terms of how much it buys of another. 4. Dumping means..... A) A form of illegal price discrimination. B) Referred to tariff imposed on imports. C) Selling more goods than allowed by import quota. D) A practice of selling goods at lower prices in foreign. Show Answer Correct Answer: D) A practice of selling goods at lower prices in foreign. 5. The figure illustrates the international movement of capital. When there is international movement of AB of capital in both Nations, the rate of return on capital in Nation 1 ..... A) Increase NF. B) Increase CN. C) Decrease CN. D) Decrease NF. Show Answer Correct Answer: B) Increase CN. 6. All the following are the 3 C's or credit except ..... A) Capacity. B) Collateral. C) Compound. D) Character. Show Answer Correct Answer: C) Compound. 7. An ..... is a good or service bought in one country that was produced in another. A) Tariff. B) Quota. C) Export. D) Import. Show Answer Correct Answer: D) Import. 8. Goods or services that a country buys from other nations. A) Duty. B) Tariff. C) Export. D) Import. Show Answer Correct Answer: D) Import. 9. To say that net exports are negative is the same as saying that A) There is a capital account deficit. B) There is a budget deficit. C) The exchange rate has depreciated. D) There is a current account deficit. Show Answer Correct Answer: D) There is a current account deficit. 10. What should each country do according to the law of comparative advantage? A) Keeping the production costs of goods or services high. B) Keeping the opportunity costs of producing goods or services high. C) Keeping the costs of producing goods or services low. D) Keeping the opportunity costs of producing goods or services low. E) Maintain the production costs of all types of goods or services the same as those of trading partners. Show Answer Correct Answer: D) Keeping the opportunity costs of producing goods or services low. 11. This is a measurement of the value of one nation's currency relative to the currency of other nations? A) Tariff. B) Balance of trade. C) Exchange rates. D) Embargo. Show Answer Correct Answer: C) Exchange rates. 12. Means that a country can produce a product using fewer resources than another country A) Appreciate. B) Comparative advantage. C) Absolute advantage. D) Balance of trade. Show Answer Correct Answer: C) Absolute advantage. 13. The effective rate of protection measures A) The "true" ad valorem value of a tariff. B) The quota equivalent value of a tariff. C) The efficiency with which the tariff is collected at the customhouse. D) The protection given by the tariff to domestic value added. Show Answer Correct Answer: D) The protection given by the tariff to domestic value added. 14. The gravity model of international trade predicts that trade between two nations is larger when A) The larger of two nations. B) The closer the nations. C) The more open are the two nations. D) All of above. Show Answer Correct Answer: D) All of above. 15. A good that is sent to another country for sale A) Export. B) Import. C) Quota. D) Subsidy. Show Answer Correct Answer: A) Export. 16. An increase in the value of one currency in terms of another currency is a/n A) Appreciation. B) Depreciation. C) Fixed exchange rate. D) Floating exchange rate. Show Answer Correct Answer: A) Appreciation. 17. Limit of the amount of a good that can be imported A) Subsidy. B) Quota. C) Exports. D) Appreciation. Show Answer Correct Answer: B) Quota. 18. Country A can produce 1 ton of wheat or 4 ton of coal using one resource. Country B can produce 2 tons of wheat or 5 tons of coal using the same resource. Which one is more appropriate? A) Country A exports wheat and imports coal. B) Country B exports wheat and imports coal. C) Country A neither exports nor imports wheat. D) Country B neither exports nor imports coal. Show Answer Correct Answer: A) Country A exports wheat and imports coal. 19. Embargoes are trade restrictions usually placed on other countries for what reasons? A) No reason. B) Petty reasons. C) Political reasons. D) Because we get along with them. Show Answer Correct Answer: C) Political reasons. 20. When the number of foreigner travel to other country is increase, it will increase the demand of foreign currency of that country. As a result it will ..... the demand curve. A) Shift to the left. B) Shift to the right. C) Remains unchanged. D) None of above. Show Answer Correct Answer: B) Shift to the right. ← 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