This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 144 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 144 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Infant industries should be granted trade protection on the grounds that A) Firms that face competition should be protected. B) New small firms are unable to compete fairly with large established firms. C) They ensure supplies of needed products to the domestic economy. D) They can be used to overcome a trade deficit. Show Answer Correct Answer: B) New small firms are unable to compete fairly with large established firms. 2. International trade without government interference A) Free trade. B) Trade Surplus. C) Trade Failure. D) Trading Blocs. Show Answer Correct Answer: A) Free trade. 3. Purchase order A) Purchase order. B) Buy order. C) Order placement. D) Delivery note. Show Answer Correct Answer: A) Purchase order. 4. Low skilled workers may face rising income inequality compared with high skilled workers A) Pro. B) Con. Show Answer Correct Answer: B) Con. 5. Actions of a government to establish barriers to foreign trade. A) Protectionism. B) Liberalism. C) Let fair. D) Deregulation. Show Answer Correct Answer: A) Protectionism. 6. A tariff on a good or service A) Would increase the price of the good or service in the domestic market. B) Would decrease the price of the good or service in the domestic market. Show Answer Correct Answer: A) Would increase the price of the good or service in the domestic market. 7. A student records her income and spending for past month, she uses the function of money A) Medium of exchange. B) Standard of deferred payments. C) Unit of account. D) Store of value. Show Answer Correct Answer: C) Unit of account. 8. Which of the following trade policies limits specified quantity of goods to be imported at one tariff rate A) Quota. B) Import tariff. C) Specific tariff. D) All the above. Show Answer Correct Answer: A) Quota. 9. Which of these cares is the most important for you? A) Use of mask. B) Wash your hands frequently. C) Go out only to what is necessary. D) Not having direct contact with people. Show Answer Correct Answer: A) Use of mask. 10. Silicon Valley is not one of the examples of industrial cluster. A) True. B) False. Show Answer Correct Answer: B) False. 11. A surplus occurs when A) The quantity demanded exceeds the the quantity supplied. B) There is equilibrium. C) The quantity supplied exceeds the quantity demanded. D) The quantity supplied equals the the quantity demanded. Show Answer Correct Answer: C) The quantity supplied exceeds the quantity demanded. 12. What is the first step procedure for importing timber product? A) Record-keeping. B) Obtain an Import License. C) Customs Inspection. D) Transportation and Distribution. Show Answer Correct Answer: B) Obtain an Import License. 13. What is the term for trading one product or service for another without using money? A) Multilateral. B) Import restriction. C) Barter. D) Export subsidy. Show Answer Correct Answer: C) Barter. 14. Export tariffs are far less common than import tariffs. A) True. B) False. Show Answer Correct Answer: A) True. 15. What is the main goal of trade liberalization? A) Reduce barriers to trade and promote free movement of goods and services between countries. B) Encourage unequal trade agreements and exploitation of smaller economies. C) Promote monopolies and limit competition between countries. D) Increase barriers to trade and restrict movement of goods and services between countries. Show Answer Correct Answer: A) Reduce barriers to trade and promote free movement of goods and services between countries. 16. This document guarantees that payment will be made when the seller meets the conditions of sale. A) Pro forma invoice. B) Letter of credit. Show Answer Correct Answer: B) Letter of credit. 17. One of the benefits of international trade is ..... A) Closing job opportunities. B) Reduce the price of goods in the country. C) Providing for domestic needs. D) Reduce the value of the rupiah exchange rate. Show Answer Correct Answer: C) Providing for domestic needs. 18. What is the main benefit of businesses operating within a trading block? A) Increased competition from outside the trading block. B) Reduced barriers to international trade. C) Higher tariffs on imported goods. D) Limited access to new markets. Show Answer Correct Answer: B) Reduced barriers to international trade. 19. Newspaper Headline: "The U.S. government places a tax on all imported cars." Which trade barrier is being used? A) Quota. B) Tariff. C) Subsidy. D) Standard. Show Answer Correct Answer: B) Tariff. 20. Two countries A and B produce wheat and cloth. In one day country A can produce either 12 units of wheat or 3 units of cloth, while country B can produce 4 units of wheat or 2 units of cloth. Which of the following statements is not true? A) Country B has an absolute advantage in cloth. B) Country A has a comparative advantage in wheat. C) Country A has a comparative advantage in cloth. D) Country B has an absolute advantage in wheat. Show Answer Correct Answer: A) Country B has an absolute advantage in cloth. ← 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