This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 124 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 124 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The government provides subsidies to domestic companies to create competitiveness for domestic goods A) Quota policy. B) Tariff policy. C) Subsidy policy. D) Import prohibition policy. Show Answer Correct Answer: C) Subsidy policy. 2. If a ..... for a product or services is more in a country than what it can domestically produce, then it goes for import. A) Supply. B) Demand. C) Quality. D) Price. Show Answer Correct Answer: B) Demand. 3. Most economists think that consumers benefit most from A) Free trade. B) Quotas. C) Protective tariffs. D) None of above. Show Answer Correct Answer: A) Free trade. 4. What do free trade agreements aim to achieve? A) To promote isolationism and reduce international trade. B) To create monopolies and restrict competition in the global market. C) To increase barriers to trade and limit economic cooperation between countries. D) To reduce barriers to trade and promote economic cooperation between countries. Show Answer Correct Answer: D) To reduce barriers to trade and promote economic cooperation between countries. 5. ..... is the government's principal agency for the promotion of the manufacturing and services sectors in Malaysia. A) TREES. B) MATRADE. C) WHAT. D) HDC. Show Answer Correct Answer: C) WHAT. 6. Refers to the ability of a nation to produce a good more efficiently than other nations because of its superior resources. A) Absolute advantage principle. B) Absolute. C) Absolute Disadvantage. D) Mercantilism. Show Answer Correct Answer: A) Absolute advantage principle. 7. According to the principle of comparative advantage, on what does a country's gains from international trade depend?A. Its level of money wage rates compared to its trading partners.B. It imposing a higher level of tariffs compared to those of its trading partners.C. Its greater productive capacity in some goods compared to its trading partners.D. Its lower opportunity cost in the production of some goods compared to its trading partners. A) A. B) B. C) C. D) D. Show Answer Correct Answer: D) D. 8. Why are most countries better off specializing in the production of particular goods, and then trading with other nations to obtain whatever else they need? A) Greater investment of capital goodsincreases productivity. B) Transportation costs are lower than theywere a century ago. C) People have limited resources to satisfyunlimited wants. D) Resources are not evenly distributed among countries. Show Answer Correct Answer: D) Resources are not evenly distributed among countries. 9. The measure of how much one nation's currency is worth in relation to another's A) Balance of trade. B) Exchange rate. C) Free trade. D) Trade surplus. Show Answer Correct Answer: B) Exchange rate. 10. Comparative advantage is the ability of one country to produce goods at a higher opportunity cost than other country. A) True. B) False. Show Answer Correct Answer: B) False. 11. Silk route is an example of long distance trade route connecting ..... with China. A) Rome. B) America. C) Libya. D) Cuba. Show Answer Correct Answer: A) Rome. 12. What country is NOT a part of NAFTA? A) Canada. B) USA. C) Mexico. D) England. Show Answer Correct Answer: D) England. 13. ..... means that somebody can be trusted to pay back money that is owed. A) Creditworthiness. B) Liability. C) Loyalty. D) Profitability. Show Answer Correct Answer: A) Creditworthiness. 14. It is a condition of a producer where it is better suited for production of one good than another good. Which of the following is suitable to describe the statement above? A) Tariffs. B) Trade Barrier. C) Comparative Advantage. D) International Trade Theory. Show Answer Correct Answer: C) Comparative Advantage. 15. A Malaysian exporter is allowed to issue invoice in Ringgit Malaysia to the importer in China and in return receives payment in Ringgit Malaysia from China. A) True. B) False. Show Answer Correct Answer: A) True. 16. If Canada has decided that they are going to place a tax on all shipments coming in from France, this would be an example of which trade barrier? A) Quota. B) Tariff. C) Embargo. D) Subsidy. Show Answer Correct Answer: B) Tariff. 17. MFN aims to: A) Maximize efficiency. B) Minimize transaction costs. C) Reciprocally increase liberalization. D) All are correct. Show Answer Correct Answer: D) All are correct. 18. Coffee is an example of a ..... A) Visible import. B) Invisible import. C) Visible export. D) Invisible export. Show Answer Correct Answer: A) Visible import. 19. Complete:I forgot my jacket at your house last night. Let me ..... after work and pick it up. A) The last thing I need is. B) Took it for a test drive. C) You've got a deal. D) Swing by. Show Answer Correct Answer: D) Swing by. 20. The concept that a nation should produce and export a limited assortment of goods for which it is particularly suited in order to remain profitable is called ..... A) Absolute advantage. B) Comparative advantage. C) Tariffs. D) Specialization. Show Answer Correct Answer: D) Specialization. ← 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