This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 135 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 135 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Kantian ethics are based on the philosophy of Immanuel Kant. A) True. B) False. Show Answer Correct Answer: A) True. 2. A government restriction on the number of cameras that can be imported from China each year is an example of an import quota. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 3. Represents a distinct advantage in skills, technology, and/or capital assets that yields differentiated product offerings and/or cost-competitive homogeneous products. A) Natural advantage. B) Acquired advantage. C) Absolute Advantage. D) Comparative advantage. Show Answer Correct Answer: B) Acquired advantage. 4. All of the following are arguments for trade restriction EXCEPT ..... A) Infant industries. B) Specialization. C) Cheap labor. D) National security. Show Answer Correct Answer: B) Specialization. 5. Modern theory of international trade is based on the views of A) Robbins and Ricardo. B) Adam Smith and Marshall. C) Saleem and Kareem. D) Heckscher and Ohlin. Show Answer Correct Answer: D) Heckscher and Ohlin. 6. Fixed Exchange Rate is: A) Determined by market forces. B) Tied to the value of another currency. C) Always fluctuating. D) A type of protective tariff. Show Answer Correct Answer: B) Tied to the value of another currency. 7. What is WTO A) World Trade Organization. B) Word international trade organization. C) Word trade organization. D) Wide trade organization. Show Answer Correct Answer: A) World Trade Organization. 8. A country has a comparative advantage in trade when it is able to produce a product relatively more efficiently. A) True. B) False. Show Answer Correct Answer: A) True. 9. Which of the following is NOT in the balance of payments A) Current account. B) Financial account. C) Capital account. D) Savings account. Show Answer Correct Answer: D) Savings account. 10. A government's establishment of economic policies that systematically restrict imports in order to protect domestic industries. A) Multinational. B) Adaptation. C) Mini-national. D) Protectionism. Show Answer Correct Answer: D) Protectionism. 11. When a production subsidy is granted on a good, A) Domestic consumers gain. B) Government budget gains. C) Domestic workers lose. D) Domestic consumers are unaffected. Show Answer Correct Answer: D) Domestic consumers are unaffected. 12. When a country is "very open to trade", it means A) Trade volume is very high. B) The country has many trade partners. C) Trade-to-GDP ratio is very high. D) The country trades many different types of goods and services. Show Answer Correct Answer: C) Trade-to-GDP ratio is very high. 13. What has international trade created? A) All of the above. B) A tightly interconnected world economy. C) More access to cheaper and better goods and services. D) Millions of jobs. Show Answer Correct Answer: A) All of the above. 14. What is visible trade? A) Trade in goods. B) Trade in services. Show Answer Correct Answer: A) Trade in goods. 15. What is the value of international trade for a business considering to produce all their products themselves or to trade with countries with a comparative advantage? A) Make everything on their own. B) Trade with countries that have a comparative advantage. C) Support domestic industries. D) Reduce unemployment in their business. Show Answer Correct Answer: B) Trade with countries that have a comparative advantage. 16. According to the law of comparative advantage, a nation should ..... A) Specialize and export goods with the lowest average cost. B) Specialize and export goods with the lowest production cost. C) Specialize and export goods with the highest opportunity cost. D) Specialize and export goods with the lowest opportunity cost. Show Answer Correct Answer: D) Specialize and export goods with the lowest opportunity cost. 17. Limit placed on imported goods. A) Import. B) Quota. C) Tariff. D) Subsidy. Show Answer Correct Answer: B) Quota. 18. In 2013, the European Union (EU) levied a 48% tariff on low-priced Chinese solar panels because the low price was the result of subsidies from the Chinese government.Which argument for protectionism was the EU using? A) The anti-dumping argument. B) The infant industry argument. C) The strategic industry argument. D) The sunset industry argument. Show Answer Correct Answer: A) The anti-dumping argument. 19. Currencies remain at a fixed rate and the value changes only when there is an economic situation A) Fixed Exchange Rate. B) Exchange Control. C) Boycotts. D) Subsidies. Show Answer Correct Answer: A) Fixed Exchange Rate. 20. Based on ..... theory, each country can increase its wealth by specializing in the production of good that it is less efficient at. A) Absolute advantage. B) Comparative advantage. C) Competitive advantage. D) Mercantilism. Show Answer Correct Answer: A) Absolute advantage. ← 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