This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Economics – Quiz 8 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Economics Quiz 8 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Goods a country brings into the country, produced by other countries. A) Import. B) Exports. C) Quota. D) Embargo. Show Answer Correct Answer: A) Import. 2. The US imports the most from this country A) China. B) Japan. C) Canada. D) England. Show Answer Correct Answer: A) China. 3. Occurs when a country exports more than it imports (brings money into the economy) A) Favorable balance of trade. B) Fixed exchanged. C) Floating exchange rate. D) Imports. Show Answer Correct Answer: A) Favorable balance of trade. 4. Rent seeking occurs when one group organizes and lobbies the government to protect its interests. A) True. B) False. Show Answer Correct Answer: A) True. 5. An increase in domestic demand for imports leads to which of the following: A) An increase in demand for the domestic currency. B) A decrease in demand for the domestic currency. C) An increase in the supply of the domestic currency. D) A decrease in the supply of the domestic currency. Show Answer Correct Answer: C) An increase in the supply of the domestic currency. 6. In 2007, the U.S. balance of payments was: A) Running a surplus. B) Balanced by increased trade advantage. C) Running a deficit. D) Exactly equal to the balance of trade surplus. Show Answer Correct Answer: C) Running a deficit. 7. The tariff levied in a "large country" (Home), lowers the world price of the imported good. This causes A) Foreign consumers to demand less of the good on which was levied a tariff. B) Domestic demand for imports to decrease. C) Domestic demand for imports to increase. D) Foreign suppliers to produce less of the good on which was levied a tariff. Show Answer Correct Answer: D) Foreign suppliers to produce less of the good on which was levied a tariff. 8. In 2009 the exchange rate of the Singapore dollar changed from 1.49 = 1 US dollar to 1.43 Singapore dollars = 1 US dollar.How would this affect the import prices and export prices for Singapore? A) Decrease/decrease. B) Decrease/increase. C) Increase/decrease. D) Increase/increase. Show Answer Correct Answer: B) Decrease/increase. 9. The Concept of gross barter terms of trade was introduced by ..... A) Joan Robinson. B) F.W.Taussig. Show Answer Correct Answer: B) F.W.Taussig. 10. What is a trade surplus? 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 to each other. D) When the value of money greater than the amount of goods and services imported. Show Answer Correct Answer: A) When the value of exports exceeds the value of imports. 11. Limits on the amount of a product that can be imported. A) Quota. B) Dumping. C) Trade Barrier. D) Embargo. Show Answer Correct Answer: A) Quota. 12. What are the main functions of import tariffs in the modern trade relations? A) Retaliatory and protective. B) Fiscal and retaliatory. C) Protective and fiscal. D) All above. Show Answer Correct Answer: C) Protective and fiscal. 13. Free trade agreements among countries in a region A) Quota. B) Trade bloc. C) Trade block. D) Embargo. Show Answer Correct Answer: B) Trade bloc. 14. Andre Prenoor, U.S. entrepreneur, invests $ 50 million to develop a theme park in Malaysia. A) Credit. B) Debit. Show Answer Correct Answer: B) Debit. 15. Assume that the Federal Reserve pursues a contractionary monetary policy. Based on the resulting change in the interest rate, what will happen to the international value of the dollar, United States imports, and United States exports? A) International value of the dollar increases, United States imports increase, United States exports increase. B) International value of the dollar increase, United States imports increase, United States exports decrease. C) International value of the dollar increase, United States imports decrease, United States increase. D) International value of the dollar decrease, United States imports increase, United States decrease. E) International value of the dollar decrease, United States imports decrease, United States increase. Show Answer Correct Answer: B) International value of the dollar increase, United States imports increase, United States exports decrease. 16. If the value of a country's exports exceeds the value of its imports A) Trade deficit. B) Trade surplus. C) Balance of trade. D) None of above. Show Answer Correct Answer: B) Trade surplus. 17. Intraindustry trade can be explained by all of the following except A) High transportation costs as a proportion of product value. B) Different growing seasons of the year for agricultural products. C) Product differentiation for goods such as automobiles. D) High per capita incomes in exporting countries. Show Answer Correct Answer: D) High per capita incomes in exporting countries. 18. A tax on imports set by the importing country on the exporting country is known as ..... A) Tariff. B) Quota. C) Standard. D) Embargo. Show Answer Correct Answer: A) Tariff. 19. Exchange rates suddenly change and now fewer U.S. dollars are required to buy a British Pound. What happened to our money? A) The US Dollar Appreciated. B) The US Dollar Depreciated. Show Answer Correct Answer: A) The US Dollar Appreciated. 20. Which of the following will cause the exchange rate of a currency to go up? A) An increase in the demand for import. B) A balance of payment deficit. C) Speculation that the exchange rate will fall. D) An increase in investment flow into the country. Show Answer Correct Answer: D) An increase in investment flow into the country. ← 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 9International Economics Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books