This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 106 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 106 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. One effect of tariffs and quotas is higher prices on domestic products. A) True. B) False. Show Answer Correct Answer: A) True. 2. Mercantilism differs from neo-mercantilism in that: A) Mercantilism advocates trade surplus via colonization. B) Mercantilism advocates trade balance. C) Mercantilism advocates the role of government and neo-mercantilism advocates for use of military force. D) Neo-mercantilism advocates trade surplus through fast economic development. Show Answer Correct Answer: D) Neo-mercantilism advocates trade surplus through fast economic development. 3. A tariff and import quota will both ..... A) Increase the quantity of imports and raise domestic price. B) Increase the quantity of imports and lower the domestic price. C) Reduce the quantity of imports and raise the domestic price. D) Reduce the quantity of imports and lower the domestic price. Show Answer Correct Answer: C) Reduce the quantity of imports and raise the domestic price. 4. Suppose Vietnam and Laos produce two products-Coffee and Noodles. Vietnam can produce 1 kilo of coffee in 10 hours or 1 kilo of noodles in 4 hours.Laos can produce 1 kilo of coffee in 15 hours or 1 kilo of noodles in 10 hours.Which country has a comparative advantage in coffee? A) Vietnam. B) Laos. Show Answer Correct Answer: A) Vietnam. 5. The state government has received tax revenue but has not yet decided what to spend the money on. This is a A) Leakage, consumption. B) Leakage, taxation. C) Injection, consumption. D) Injection, taxation. Show Answer Correct Answer: B) Leakage, taxation. 6. A trade agreement that eleminates barriers between the United States, Canada, and Mexico. A) ASEAN. B) EU. C) NAFTA. D) APEC. Show Answer Correct Answer: C) NAFTA. 7. Government policy can: A) Affect demand through product standards. B) Influence rivalry through regulation and antitrust laws. C) Impact the availability of highly educated workers and advanced transportation infrastructure. D) All of the above. Show Answer Correct Answer: D) All of the above. 8. When your exports are less than your imports, this exists? A) Trade fails. B) Trade surplus. Show Answer Correct Answer: A) Trade fails. 9. What is the main criticism of NAFTA that Avery, Ethan, and Isla all agreed on? A) It increased US trade deficits. B) It decreased US manufacturing jobs. C) It favored rich countries and neglected workers' rights. D) All of the above. Show Answer Correct Answer: D) All of the above. 10. In 1973, many Middle Eastern countries stopped exporting oil to the United States in protest against the US' support of Israel. What type of trade barrier is this? A) Mountain. B) Tariff. C) Quota. D) Embargo. Show Answer Correct Answer: D) Embargo. 11. What is the main benefit of international trade? A) Increased domestic production. B) Higher employment rates. C) Improved standard of living. D) Reduced competition. Show Answer Correct Answer: C) Improved standard of living. 12. Freight A) Unit load. B) Carrier. C) Forwarder. D) Freight. Show Answer Correct Answer: D) Freight. 13. What is one assumption of the theory of comparative advantage regarding resource allocation? A) Every country invests in technology to make their economies more efficient. B) Every country has the same knowledge of prices and quantities in the market at the same time. C) Every country should specialize in producing the good with the lowest opportunity cost. D) Every country is able to solely focus on producing a single good. Show Answer Correct Answer: C) Every country should specialize in producing the good with the lowest opportunity cost. 14. A current account deficit most likely means that A) There is a financial account surplus. B) There is an official reserves surplus. C) Imports exceed exports. D) There is no impact on the exchange rate. Show Answer Correct Answer: C) Imports exceed exports. 15. The United States decides it wants to encourage citizens to buy televisions that are made in America, so it decides to set a limit on the number of televisions that can be imported from China and Japan. This limit is an example of a ..... A) Tariff. B) Free trade agreement. C) Trade union. D) Quota. Show Answer Correct Answer: D) Quota. 16. It's the authority or organization that controls the flow of goods in and out of a country. Collect the duties or taxes applied to imports and exports. A) Customs / Duty. B) Freight Forwarder. C) Shipping Agent. D) Logistics Operator. Show Answer Correct Answer: A) Customs / Duty. 17. A U.S. tariff on the import of sugar ..... A) Makes the domestic price of sugar higher and U.S. consumer surplus higher. B) Makes the domestic price of sugar higher and U.S. consumer surplus lower. C) Makes the domestic price of sugar lower and U.S. consumer surplus higher. D) Makes the domestic price of sugar lower and U.S. consumer surplus lower. Show Answer Correct Answer: B) Makes the domestic price of sugar higher and U.S. consumer surplus lower. 18. Disputes that only bind some WTO member countries originate from..... A) Trade in Goods (GATT). B) Trade in Services (GATS). C) Plurilateral Trade Agreements. D) Agreement on Trade-Related Aspects of Intelectual Property Rights (TRIPS). Show Answer Correct Answer: C) Plurilateral Trade Agreements. 19. Invisible trade example A) Payments for carriers from foreign countries services for sailing goods from there. B) Chemicals import. C) Fertilizer import. D) Oil import. Show Answer Correct Answer: A) Payments for carriers from foreign countries services for sailing goods from there. 20. Estiba A) Stevedore. B) Shipper. C) Stowage. D) Load. Show Answer Correct Answer: C) Stowage. ← 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