This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 149 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 149 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The difference between the money a country pays to, and receives from, other nations when it engages in international trade A) Tariff. B) Protectionists. C) Free traders. D) Balance of payments. Show Answer Correct Answer: D) Balance of payments. 2. Consider the following statements!1. There are differences in natural conditions2. There are differences in ideology3. Difference in the mastery of science and technology4. Globalization in all fields5. Religious differences between nationsWhich is the driving factor for trade between countries is ..... A) 1, 2, and 3. B) 1, 3, and 4. C) 2, 3, and 5. D) 3, 4, and 5. Show Answer Correct Answer: B) 1, 3, and 4. 3. What is an argument supporting free trade? A) Free trade prevents trade wars. B) Free trade secures national defense. C) Free trade protects infant industries. D) None of above. Show Answer Correct Answer: A) Free trade prevents trade wars. 4. SAFTA is A) South Asian Free Trade Association. B) South Asian Free Trade Agreement. C) South American Free Trade Association. D) South American Free Trade Agreement. Show Answer Correct Answer: B) South Asian Free Trade Agreement. 5. All of the following would increase demand for a currency EXCEPT ..... A) Decrease in exports. B) Rising domestic interest rates. C) Deflation. D) Increase in supply in the currency's exchange rate partner. Show Answer Correct Answer: A) Decrease in exports. 6. What is the main benefit of international trade for consumers? A) Access to a larger variety of goods and services. B) Higher wages and job opportunities. C) Lower taxes and government spending. D) Increased government revenue. Show Answer Correct Answer: A) Access to a larger variety of goods and services. 7. Which of the following is an example of transportation and logistics industry? A) Software engineering. B) Toy manufacturing. C) Retail shipment processing. D) Freight forwarding. Show Answer Correct Answer: D) Freight forwarding. 8. Tariffs are different from assigned import quotasin that tariffs will A) Restrict imports. B) Increase the price of imported goods. C) Benefit domestic consumers of importedgoods. D) Hurt domestic producers of goods facingimport competition. E) Generate additional revenue for the domesticgovernment. Show Answer Correct Answer: E) Generate additional revenue for the domesticgovernment. 9. A nation has a deficit in its international balance of trade when ..... A) Government expenditures exceed tax revenues. B) It buys goods of greater value from other nations that it sells to them. C) It sells goods of greater value to other nations than it buys from them. D) It invests more in other countries that it receives from them. Show Answer Correct Answer: B) It buys goods of greater value from other nations that it sells to them. 10. Kochi and Karwar in India are examples of: A) Inland Port. B) Naval Port. C) Out Ports. D) Comprehensive Ports. Show Answer Correct Answer: B) Naval Port. 11. Members do away with duties and other trade barriers-they allow companies to invest freely in each member's country *ex. EU (European Union) A) Free-trade zones. B) Free-trade agreements. C) Non-tariff alliances. D) Common markets. Show Answer Correct Answer: D) Common markets. 12. In India, ..... issues currency notes on behalf of the Central Government. A) Reserve Bank of India (RBI). B) Ministry of Finance. C) Finance Commission. D) None of the above. Show Answer Correct Answer: A) Reserve Bank of India (RBI). 13. When a quota is imposed on a good, A) Domestic producers lose. B) Domestic consumers gain. C) Domestic workers gain. D) Government budget gains. Show Answer Correct Answer: C) Domestic workers gain. 14. What is an export? A) A good or service that a country buys from another country. B) A good or service that a country sells to another country. C) A good or service that is produced within the same country. D) None of above. Show Answer Correct Answer: B) A good or service that a country sells to another country. 15. How does international trade impact economic growth within a trading nation? A) International trade allows industries within a trading nation to increase market power without losing customers. B) International trade allows a trading nation to limit opportunity costs, making the market more efficient. C) International trade shifts the demand curve of a trading nation outward, increasing the purchasing power of industries. D) International trade shifts the production possibility curve of a trading nation outward by using resources more efficiently. Show Answer Correct Answer: D) International trade shifts the production possibility curve of a trading nation outward by using resources more efficiently. 16. Which trade group promotes the movement of goods and people in South America? A) ASEAN. B) EU. C) Mercosur. D) SADC. Show Answer Correct Answer: C) Mercosur. 17. When one individual, business, or country has the lowest opportunity cost ratio for producing the good or service is known as: A) Absolute Advantage. B) Comparative Advantage. C) Trade Surplus. D) Balance of trade. Show Answer Correct Answer: B) Comparative Advantage. 18. Revenue Tariff is imposed to: A) Shield domestic industries. B) Restrict international trade. C) Generate government revenue. D) Promote comparative advantage. Show Answer Correct Answer: C) Generate government revenue. 19. Which of the following was listed as a good area for Free Trade Zones? A) Seaports. B) Borders. C) Embassies. D) Government buildings. Show Answer Correct Answer: A) Seaports. 20. What is the anti-dumping argument for government intervention in international trade? A) To prevent unemployment. B) To protect domestic industries. C) To maintain spheres of influence. D) To prevent unfair trade practices. Show Answer Correct Answer: D) To prevent unfair trade practices. ← 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