This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 15 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 15 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The results of job characteristics theory are..... A) Performance increases. B) Satisfaction decreases. C) Absenteeism increases. D) Constant quality of work. Show Answer Correct Answer: A) Performance increases. 2. All of the following are terms used to describe limitations on trade except? A) Trade Barriers. B) Sanctions. C) Trade restrictions. D) EU. Show Answer Correct Answer: D) EU. 3. The countertrade is a reciprocal buying agreement. A) True. B) False. Show Answer Correct Answer: B) False. 4. ..... production requires less labor than..... production. A) Indirect-direct. B) Direct-indirect. C) Incorrect-correct. D) Correct-incorrect. Show Answer Correct Answer: A) Indirect-direct. 5. It can include the gathering of information, negotiating, and enforcing contracts. A) Terms of Trade. B) Transaction Costs. C) Transport Costs. D) Trade Balance. Show Answer Correct Answer: B) Transaction Costs. 6. Economic arrangements that eliminate barriers to trade and investment between countries are known as A) Emerging economics. B) International trade. C) Domestic trade. D) Economic cooperation agreements. Show Answer Correct Answer: D) Economic cooperation agreements. 7. Foreign Exchange Rate A) Rate at which one currency may be converted into another; used when world trade occurs. B) Comparison of amounts of foreign currency taken into a country versus amounts of domestic currency paid out. C) Country's total amount of exports minus the total amount of imports. D) Foreign goods shipped into a country or region. Show Answer Correct Answer: A) Rate at which one currency may be converted into another; used when world trade occurs. 8. Producers benefit from exports because they cause the A) Demand for their products to increase and their prices to decrease. B) Demand for their products to decrease and their prices to increase. C) Demand and price for their products to increase. D) Demand and price for their products to decrease. Show Answer Correct Answer: C) Demand and price for their products to increase. 9. A production possibility frontier BEST illustrates the concept of A) Elasticity of supply. B) Trade-offs. C) Pareto efficiency. D) Cross-price elasticity of demand. E) Gains from trade. Show Answer Correct Answer: B) Trade-offs. 10. What does it mean when an economist says a currency is stronger? A) It can be exchanged for more of a lesser foreign currency. B) It can be converted to prices in any currency. C) There a few things it could buy. D) It will buy fewer foreign goods. Show Answer Correct Answer: A) It can be exchanged for more of a lesser foreign currency. 11. Which one of the following explains changes in the pattern of trade between the UK and the rest of the world A) UK trade with oil exporting countries has increased. This is because the exploitation of North Sea Oil has increased UK dependence on oil imports. B) The majority of UK trade in goods is now with countries outside of the European Union. C) A change in comparative advantage between the UK and newly industrialised nations has mean that the UK is now a net exporter of manufactured goods. D) A change in comparative advantage between the UK and newly industrialised nations has mean that the UK is now a net importer of manufactured goods. Show Answer Correct Answer: D) A change in comparative advantage between the UK and newly industrialised nations has mean that the UK is now a net importer of manufactured goods. 12. Baseball bats made in Kentucky are used by baseball players in Japan. A) Import. B) Export. Show Answer Correct Answer: B) Export. 13. The ability to produce more of a given product than someone else A) Imports. B) Exports. C) Absolute advantage. D) Law of comparative advantage. Show Answer Correct Answer: C) Absolute advantage. 14. The character who issued the book The Wealth of Nation is ..... A) Adam Smith. B) JM Keynes. C) GR Terry. D) David Ricardo. Show Answer Correct Answer: A) Adam Smith. 15. An official document needed by customs for goods leaving or coming into a country A) Bill of Exchange. B) Bill of Lading. C) Certificate of Origin. D) Custom Specification. Show Answer Correct Answer: D) Custom Specification. 16. Suppose the exchange rate between the United States and Mexico changes from $ 1 = 10 Peso to $ 1 = 15 Peso. What most likely would happen to the price of American goods in Mexico? A) The will increase. B) They will remain the same. C) They will decrease. D) They could either increase or decrease. Show Answer Correct Answer: A) The will increase. 17. A limit on the number of cars that can be brought into the country A) Import quota. B) Tariff. C) Customs duty. D) Voluntary export constraint. Show Answer Correct Answer: A) Import quota. 18. Inflation A) Measuring the rate of change in consumer spending. B) Measuring the rate of change in prices usually over a year. Show Answer Correct Answer: B) Measuring the rate of change in prices usually over a year. 19. Chuck believes that his business has grown because of his personal involvement in every step of the way. What advice do you offer Chuck as he continues to expand his business in new Asian markets? A) Contact distributors directly to avoid misunderstandings that can arise when using third-party contacts. B) Always stick to corporate settings when doing business to avoid misunderstandings that can arise in less formal environments. C) Protect your interests by insisting on detailed contracts from the start. D) Use proper intermediaries as required in Pacific Rim nations. Show Answer Correct Answer: D) Use proper intermediaries as required in Pacific Rim nations. 20. Balance of Trade is a statement that captures the country's ..... and ..... of goods with the remaining world. A) Export and Entrepot. B) Export and Import. C) Import and Entrepot. D) Import and Export. Show Answer Correct Answer: B) Export and Import. ← 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