This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 129 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 129 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What do you call the ability to monitor exchange rate? A) GROSS DOMESTIC PRODUCT. B) INTERNATIONAL MONETARY FUND. C) TARIFFS. D) COMPARATIVE ADVANTAGE. Show Answer Correct Answer: B) INTERNATIONAL MONETARY FUND. 2. Import quota refers to..... A) Trade with any country with a limit. B) A set amount of taxes. C) A limit put on the number of goods that are sent out to another country. D) A limit put on the number of goods that are brought in from one country into another. Show Answer Correct Answer: D) A limit put on the number of goods that are brought in from one country into another. 3. Approaches to green management include the..... A) Market. B) Illegal. C) Social. D) Activist. Show Answer Correct Answer: D) Activist. 4. What is MOST LIKELY to happen US imports and exports if the US dollar appreciates relative to other currencies? A) Imports will increase, exports will decrease. B) Imports will decrease, exports will increase. C) Both imports and exports will increase. D) Both imports and exports will decrease. Show Answer Correct Answer: A) Imports will increase, exports will decrease. 5. Which of the following effects does NOT occur when a country becomes an exporter? A) Consumer surplus decreases. B) Deadweight loss increases. C) Producer surplus increases. D) Domestic production increases. E) Social welfare increases. Show Answer Correct Answer: B) Deadweight loss increases. 6. The theory of ..... states that countries should produce products that they could effectively produce more than other countries, and just trade for products that they don't effectively produce compared to other countries. A) Absolute advantage. B) Comparative advantage. C) Both. D) None of above. Show Answer Correct Answer: C) Both. 7. The final category of the current account balance is ....., which can be thought of as payments made by individuals in which money is sent abroad ..... A) Income payments; and the returns are received from abroad. B) Trade in services; by domestic financial firms are treated like imports. C) Unilateral transfers; without any direct good or service being received. D) Exports of goods; can cause a merchandise trade deficit. Show Answer Correct Answer: C) Unilateral transfers; without any direct good or service being received. 8. If one US dollar was valued as 0.97 EU Euro last year, but this year is valued as 1.03 EU Euros. Did the dollar appreciate or depreciate? A) Neither. B) Appreciated. C) Depreciated. D) I don't know. Show Answer Correct Answer: B) Appreciated. 9. Which is a benefit of the U.S. dollar weakening against the Euro? A) Americans will buy more European made cars. B) People will buy more European goods in the U.S. C) Europeans will travel to the U.S. because it will be a better bargain. D) Americans will travel more to European destinations. Show Answer Correct Answer: C) Europeans will travel to the U.S. because it will be a better bargain. 10. A country specialises in the production of steel, toys and textiles.What is a disadvantage of specialisation for the country's workers? A) They cannot afford to buy products from other countries. B) They could become structurally unemployed if global demand changes. C) They have to learn a variety of skills. D) They have too much choice which wastes their time. Show Answer Correct Answer: B) They could become structurally unemployed if global demand changes. 11. What do all of the following groups have in common? EU (European Union)NAFTA (North American Free Trade Agreement) A) Exchange rate. B) Free trade zones. C) Stabilization. D) Protectionist policy. Show Answer Correct Answer: B) Free trade zones. 12. The comparison of the amount of foreign currency taken into a country versus the amount of domestic currency paid out is called: A) Foreign exchange rate. B) Payment exchange rate. C) Balance of trade. D) Balance of payments. Show Answer Correct Answer: D) Balance of payments. 13. A person's ability to give birth to something new, whether in the form of an idea or a real work that is relatively different from what existed before, is understanding..... A) Activity. B) Discovery. C) Creativity. D) Invention. Show Answer Correct Answer: C) Creativity. 14. Safeguard measures can be implemented when it results in..... A) Impor. B) Export. C) Loss. D) Surge. Show Answer Correct Answer: C) Loss. 15. What is tax? A) Money paid to the government. B) Money paid to the people. C) Money paid to the poor. D) Money paid to the rich. Show Answer Correct Answer: A) Money paid to the government. 16. United States citizens who want to buy foreign products would be hurt if the dollar is depreciating A) True. B) False. Show Answer Correct Answer: A) True. 17. What does export mean? A) Selling goods to another country. B) Selling goods to another business. C) Buying goods from another country. D) Buying goods from another business. Show Answer Correct Answer: A) Selling goods to another country. 18. What international agreement established the U.S. dollar as the world's primary reserve currency? A) Marshall Plan. B) NATO. C) Plaza Accords. D) Bretton Woods. Show Answer Correct Answer: D) Bretton Woods. 19. A country voluntarily limits the number of a product they ship to a country A) Protectionism. B) Quota. C) Tariff. D) Voluntary restriction. Show Answer Correct Answer: D) Voluntary restriction. 20. What are the potential disadvantages of using the WIPO Madrid System for international trademark protection? A) High cost of application fees, lengthy registration process, language barriers. B) Limited geographical coverage, complex application process, dependency on home country registration, potential for refusal or cancellation of the trademark. Show Answer Correct Answer: B) Limited geographical coverage, complex application process, dependency on home country registration, potential for refusal or cancellation of the trademark. ← 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