This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Economics – Quiz 56 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Economics Quiz 56 (10 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The figure illustrates the international movement of capital. When there is no international movement of capital, Nation 1 and Nation 2 invest their entire capital stock domestically, rates of return on capital in Nation 1 and Nation 2 are respectively denoted by thelength of ..... A) O1N and O2T. B) CN and TH. C) O1F and O2J. D) O1C and O2H. Show Answer Correct Answer: D) O1C and O2H. 2. During periods of growing domestic demand, an import quota A) Is less restrictive on a country's imports than a tariff. B) Is more restrictive on a country's imports than a tariff. C) Has the same restrictive effect on a country's imports as a tariff. D) Will always generate increased tax revenue for the government. Show Answer Correct Answer: B) Is more restrictive on a country's imports than a tariff. 3. The sale of a product in another country at a price lower than that charged in the home market A) Quota. B) Dumping. C) Trade Barrier. D) Embargo. Show Answer Correct Answer: B) Dumping. 4. Permit to carry out foreign trade relations based on the list of goods specified by the state A) License. B) Subsidy. C) Quota. D) None of above. Show Answer Correct Answer: A) License. 5. An important difference between tariffs and quotas is that tariffs A) Raise the price of goods. B) Generate tax revenue for the government. C) Stimulate international trade. D) Help domestic producers. Show Answer Correct Answer: B) Generate tax revenue for the government. 6. ..... is (are) all goods and services produced or based in one country that are sold abroad. A) Necessities. B) Exports. C) Global Licensing. D) Imports. Show Answer Correct Answer: B) Exports. 7. The measure of the price of one nation's currency in terms of another nation's currency is a/n A) Appreciation. B) Depreciation. C) Exchange rate. D) Floating exchange rate. Show Answer Correct Answer: C) Exchange rate. 8. Which option correctly describes a trade deficit? A) Exports are greater than imports. B) Imports are greater than exports. Show Answer Correct Answer: B) Imports are greater than exports. 9. An increase in the value of a currency A) Apprecation. B) Depreciation. C) Quota. D) Subsidy. Show Answer Correct Answer: A) Apprecation. 10. Which of the following explains why banks charge higher interest for lower credit scores? A) People with lower credit scores have a good history of repaying debt. B) People with lower credit scores are always poor. C) People with lower credit scores are always rich. D) People with lower credit scores have a bad history of repaying debt. Show Answer Correct Answer: D) People with lower credit scores have a bad history of repaying debt. ← PreviousRelated 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