This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Economics – Quiz 7 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Economics Quiz 7 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Who among the following is associated with the factor price equalisation theorem A) David Ricardo. B) Adam Smith. C) Stolper-Samelson. D) Bergson. Show Answer Correct Answer: C) Stolper-Samelson. 2. Globalisation means A) No trade restriction in the entire globe. B) Trade between India and USA. C) Multinational Company. D) Foreign Aid. Show Answer Correct Answer: A) No trade restriction in the entire globe. 3. America can produce more DVDs per labor hour than can any other country in the world. Is this an example of comparative or absolute advantage? A) Comparative advantage. B) Absolute advantage. Show Answer Correct Answer: B) Absolute advantage. 4. Which situation correctly describes a trade deficit? A) Tariffs are higher than income taxes. B) Exports are greater than imports. C) Tax revenue is higher than government spending. D) Imports are greater than exports. Show Answer Correct Answer: D) Imports are greater than exports. 5. A tariff is a..... A) Limit on how much of a product can be imported. B) Limit on how much a product can be exported. C) Ban on trade with a specific nation. D) Tax on imported goods. Show Answer Correct Answer: D) Tax on imported goods. 6. The law of demand establishes that there is a ..... a ..... relation between ..... b ..... and quantity. A) Clear b) preference. B) Negative, b)preference. C) Positive, b) price. D) Negative, b) price. Show Answer Correct Answer: D) Negative, b) price. 7. External economies of scale will ..... average cost when output is ..... by ..... A) Reduce; increased; the industry. B) Reduce; increased; a firm. C) Increase; increased; a firm. D) Increase; increased; the industry. E) Reduce; reduce; the industry. Show Answer Correct Answer: A) Reduce; increased; the industry. 8. A quota affects trade by ..... A) Imposing a tax on imported goods. B) Limiting the quantity of goods that can be imported. C) Offering a subsidy to producer who exports to foreign countries. D) The voluntary action of foreign manufacturing manufacturers their exports. Show Answer Correct Answer: B) Limiting the quantity of goods that can be imported. 9. What is a trade deficit? A) When the value of exports exceeds the value of imports. B) When the value of imports exceeds the value of exports. C) When the values of imports and exports are equal. D) When the value of imports for one nation is greater than the value of imports for another nation. Show Answer Correct Answer: B) When the value of imports exceeds the value of exports. 10. What are some positives of globalization? A) Cheap sneakers and clothes. B) Cheap electronics. C) Information is easy to access and it travels quickly (internet and social media). D) All of the answers are correct. Show Answer Correct Answer: D) All of the answers are correct. 11. The exchange of goods, services, and/or productive resources among individuals, businesses, and/or governments. A) Trade. B) Trade Surplus. C) Trade barriers. D) Trade deficit. Show Answer Correct Answer: A) Trade. 12. Name of important component of international economics? A) International balance trade. B) International exchange rate. C) International balance of payment. D) Import-export proportion. Show Answer Correct Answer: A) International balance trade. 13. US Exports = $ 12 million and US Imports = $ 20 million. What does the United States have? Hint:(X-M) A) Trade Surplus. B) Trade Deficit. C) Balance of Trade. D) None of above. Show Answer Correct Answer: B) Trade Deficit. 14. Country "G" can produce 20 hamburgers or 80 hot dogs. Country "H" can produce 14 hamburgers or 28 hot dogs. What is the opportunity cost for Country "G" to produce 1 hamburger? A) 60 hot dogs. B) 40 hot dogs. C) 4 hot dogs. D) 4 hamburgers. Show Answer Correct Answer: C) 4 hot dogs. 15. An agreement between the United States, Canada, and Mexico designed to remove tariff barriers. A) European Union. B) ASEAN. C) NATO. D) NAFTA. Show Answer Correct Answer: D) NAFTA. 16. France introduced import quotas in A) 1931. B) 1934. C) 1831. D) 1835. Show Answer Correct Answer: A) 1931. 17. If the Malaysia ringgit (RM) is said to be depreciated relative to the U.S dollar, then the dollar ..... A) Will be less expensive to Malaysians. B) Will appreciate relative to Malaysian ringgit. C) Will depreciate relative to Malaysian ringgit. D) Either will appreciate or depreciate relative to Malaysian ringgit. Show Answer Correct Answer: B) Will appreciate relative to Malaysian ringgit. 18. The ..... is the largest container port along the east coast of the United States. A) Port of Tacoma. B) Northeast Inland Port. C) Port of Savannah. D) Port of Long Beach. Show Answer Correct Answer: C) Port of Savannah. 19. A definition of a multinational business is one that: A) Has a foreign sounding name. B) Imports goods from one country and exports them to another one. C) Exports goods to many different countries. D) Has factories or operations in more than one country. Show Answer Correct Answer: D) Has factories or operations in more than one country. 20. A nation's ability to produce goods more efficiently than another entity is referred to as? A) Specialization. B) Comparative Advantage. C) Opportunity Cost. D) Absolute Advantage. Show Answer Correct Answer: D) Absolute Advantage. ← PreviousNext →Related QuizzesEconomics QuizzesInternational Economics Quiz 1International Economics Quiz 2International Economics Quiz 3International Economics Quiz 4International Economics Quiz 5International Economics Quiz 6International Economics Quiz 8International Economics Quiz 9International Economics Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books