This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 153 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 153 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The fourth assumption of Comparative Advantage Theory:The level of ..... is fixed. A) Labor. B) Technology. C) Cash. D) Gold. Show Answer Correct Answer: B) Technology. 2. Maxicopolis can produce 100 bushels of wheat or 100 yards of cloth. Minicopolis can produce 100 bushels of wheat or 300 yards of cloth. Which city has an absolute advantage in the production of wheat? A) Maxicopolis, because they can produce more wheat. B) Minicopolis, because they can produce more wheat. C) Neither:Both nations can produce 100 bushels of wheat, meaning neither producing a larger "absolute" quantity of wheat than the other. D) Both:100 bushels is a lot of wheat. That's "absolutely" impressive and it gives them a total "advantage.". Show Answer Correct Answer: C) Neither:Both nations can produce 100 bushels of wheat, meaning neither producing a larger "absolute" quantity of wheat than the other. 3. Consolidate A) Space on a ship, train, lorry or plane. B) A number of shipments under one bill of lading. C) Booking reservations. D) That the health and safety standards aremaintained. E) With all the necessary documentation. Show Answer Correct Answer: B) A number of shipments under one bill of lading. 4. Which of the following trade barriers are RARE to impose? A) Tariff. B) Quotas. C) Embargoes. D) Boycotts. Show Answer Correct Answer: C) Embargoes. 5. ..... refers to the tax imposed on imports. A) Imported Tax. B) Tariffs. C) Subsidies. D) Import Quotas. Show Answer Correct Answer: B) Tariffs. 6. ..... believes that international trade is characterized by interdependence and not dependence. A) Mercantilism. B) Liberalism. C) Marxism. D) Rational Choice. Show Answer Correct Answer: B) Liberalism. 7. The following are strategies that must be implemented so that community products are accepted by the international market, except..... A) Conduct market surveys. B) Carry out promotions in various media. C) Produce high quality products. D) Highest price benchmark. Show Answer Correct Answer: D) Highest price benchmark. 8. Is this an example of discrimination?-Paul is a marketing employee who made several errors on his last project. To try and address this, Paul has been placed on a performance management plan to develop his skills. However Paul continued to make errors while on the plan. As such, Paul's daily duties have been changed while he was undergoing further training. A) Yes. B) No. Show Answer Correct Answer: B) No. 9. In which of these situations does Brent pay in foreign exchange currencies? A) When he exports his dried mango products to the US. B) When he imports a cruise ship from Japan. C) When he sells lotions to Ella in Tagaytay through Lazada shop. D) None of above. Show Answer Correct Answer: B) When he imports a cruise ship from Japan. 10. An ..... brings (goods or services) into a country from abroad for sale. A) Exchange rate. B) Export. C) Import. D) Import quota. Show Answer Correct Answer: C) Import. 11. Why does the US have absolute advantage in trade over most nations? A) We have comparative advantage because of hard-working people. B) Our capitalist economy. C) Abundant resources enables us to produce almost anything. D) Democrats control the House. Show Answer Correct Answer: C) Abundant resources enables us to produce almost anything. 12. Canada placed a tariff on the following countries for importing steel and aluminium:EU, China and United States A) True. B) False. Show Answer Correct Answer: B) False. 13. A protective tariff is used to A) Give inefficient domestic industries an advantage. B) Expand trade. C) Increase revenue. D) Gain a comparative advantage. Show Answer Correct Answer: A) Give inefficient domestic industries an advantage. 14. Absolute Advantage is ..... A) Who can produce the most. B) Who has the lower opportunity cost. C) Who starts out with the greatest number of resources. D) Coach Hayes. Show Answer Correct Answer: A) Who can produce the most. 15. What is a benefit of tariffs? A increased choice B increased government revenue C more competition D more trade A) A. B) B. C) C. D) D. Show Answer Correct Answer: B) B. 16. Which countries are often hardest hit by trade barriers, as mentioned in the text? A) Developed countries. B) All countries are equally affected. C) Industrialized countries. D) Less developed countries. Show Answer Correct Answer: D) Less developed countries. 17. What is the part of an economy that concerns services (as opposed to the production of tangible goods) called? A) Transitional economies. B) Centrally planned economy. C) Service sector. D) Industrialization. Show Answer Correct Answer: C) Service sector. 18. Imposing taxes on incoming goods is called policy A) Embargo. B) Protection. C) Tariffs/duties. D) Dumping. Show Answer Correct Answer: C) Tariffs/duties. 19. In Porter's diamond of competitive advantage theory, a nation's position in factors of production necessary to compete in a given industry refers to: A) Supply Conditions. B) Strategy, Structure and Rivalry. C) Supporting Industries. D) Factor Endowments. Show Answer Correct Answer: D) Factor Endowments. 20. The most desirable alternative given up as the result of a decision A) Specialization. B) Inputs. C) Outputs. D) Opportunity Cost. Show Answer Correct Answer: D) Opportunity Cost. ← 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