This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 10 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 10 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. There is a quote that say: " ..... is the only multilateral trade system in which developed and developing countries sit together at par" . Fill in blanks A) United Nations. B) Asean. C) European Union. D) WTO. Show Answer Correct Answer: D) WTO. 2. Roof A) Insured. B) Insurance Policy. C) Insurer. D) Insurance Coverage. Show Answer Correct Answer: D) Insurance Coverage. 3. What did World Bank economists calculate about the barriers faced by exports from low-income countries? A) They have no impact on trade. B) They are lower than those faced by major industrialized countries. C) They are higher than those faced by major industrialized countries. D) They are irrelevant in today's world. Show Answer Correct Answer: C) They are higher than those faced by major industrialized countries. 4. Which organization is the Japanese ECA? A) Japan Board for International Corp. B) Japan Bank for International Cooperation. C) Japan Bank for International Corp. D) None of above. Show Answer Correct Answer: B) Japan Bank for International Cooperation. 5. An embargo is a complete ban on certain products coming in or leaving the country? A) True. B) False. Show Answer Correct Answer: A) True. 6. A farmer can grow wheat or corn. She grows corn because it will make more money than wheat. The value of the wheat crop she chose not to grow could best be described as ..... A) A comparative advantage. B) A comparative disadvantage. C) An opportunity cost. D) All of the above. Show Answer Correct Answer: D) All of the above. 7. Limit on the amount of a product that can be imported A) Quota. B) Shipment. C) Specialization. D) None of above. Show Answer Correct Answer: A) Quota. 8. If you trade one item or service for another. What are you giving an example of? A) The Exchange System. B) The Barter System. C) The Trade System. D) None of above. Show Answer Correct Answer: B) The Barter System. 9. The purpose of the founding of the European Union (E.U.) in 1993 was to do which of the following? A) Fight the growing global network of terrorism. B) Guarantee the freedom of movement of people, goods, services and capital. C) Become an economic power to compete with the Unites States. D) Prevent the poor from causing a revolution. Show Answer Correct Answer: B) Guarantee the freedom of movement of people, goods, services and capital. 10. Intra-industry trade will tend to dominate trade flows when which of the following exists? A) Large differences between relative country factor availabilities. B) Small differences between relative country factor availabilities. C) Homogeneous products that cannot be differentiated. D) Constant cost industries. Show Answer Correct Answer: B) Small differences between relative country factor availabilities. 11. Who has the comparative advantage in Clothing? A) Gamma. B) Neither. C) Omega. D) Both. Show Answer Correct Answer: A) Gamma. 12. Australia's largest trading partner is: A) USA. B) Japan. C) China. D) New Zealand. Show Answer Correct Answer: C) China. 13. A persistent trade deficit causes A) Unemployment to increase in import industries. B) Unemployment to increase in export industries. C) The dollar to grow stronger. D) Lower prices on imported goods. Show Answer Correct Answer: A) Unemployment to increase in import industries. 14. The Marhsall Lerner Condition is designed to answer which question? A) How long will the coronavirus epidemic last?. B) Will the current account improve following a depreciation?. C) Is a depreciation good or bad?. D) Will a currency depreciate?. Show Answer Correct Answer: B) Will the current account improve following a depreciation?. 15. Government payment to a domestic producer to encourage or protect a certain economic activity A) Tariff. B) Standard/regulation. C) Subsidy. D) Quota. Show Answer Correct Answer: C) Subsidy. 16. Advances in technology have increased the number of people needed to ..... A) Teach children in schools. B) Work in assembly lines. C) Develop computer software. D) Serve in the military. Show Answer Correct Answer: C) Develop computer software. 17. Trade is needed because A) We have to trade because it's the law. B) It's fun to trade with friends. C) People want or need things they cannot get in their own country. D) None of above. Show Answer Correct Answer: C) People want or need things they cannot get in their own country. 18. Which of the following is not a benefit of int. trade? A) Lower domestic prices. B) Development of more efficient methods and new products. C) A greater range of consumption choices. D) High wage levels for all domestic workers. Show Answer Correct Answer: D) High wage levels for all domestic workers. 19. The assignment arrives at the warehouse on Monday and will be ..... immediately. A) Unloaded. B) Emptied. C) Undone. D) Unsent. Show Answer Correct Answer: B) Emptied. 20. Wheat grown in Iowa is used to make cereal in South America. A) Import. B) Export. Show Answer Correct Answer: B) Export. ← PreviousNext →Related QuizzesInternational Economics QuizzesEconomics QuizzesInternational Trade Quiz 1International Trade Quiz 2International Trade Quiz 3International Trade Quiz 4International Trade Quiz 5International Trade Quiz 6International Trade Quiz 7International Trade Quiz 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books