This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 159 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 159 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. ..... argues that dynamic gains from trade may not always be beneficial. A) Paul Samuelson. B) Adam Smith. C) David Ricardo. D) Heckscher-Ohlin. Show Answer Correct Answer: A) Paul Samuelson. 2. Which concept explains why countries trade even if they have an absolute advantage in producing all goods? A) Comparative advantage. B) Tariffs. C) Balance of trade. D) Opportunity cost. Show Answer Correct Answer: A) Comparative advantage. 3. The producer that can produce the most output compared to any other nation. A) Comparative Advantage. B) Trade Offs. C) Absolute Advantage. D) Opportunity Cost. Show Answer Correct Answer: C) Absolute Advantage. 4. A negative balance of trade would ultimately lead to A) Exhaustion of country's financial resources. B) Increase in foreign exchange reserves. C) Development of economy. D) Creation of job opportunities. Show Answer Correct Answer: A) Exhaustion of country's financial resources. 5. If the pound is described as weak who benefits? A) Small Businesses. B) Large Businesses. C) Importing Businesses. D) Exporting Businesses. Show Answer Correct Answer: D) Exporting Businesses. 6. Comparative advantage focus on the relative productivity differences, absolute advanatage looks at the absolute productivity A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 7. Trade agreements help reduce barriers between nations for the benefit of the involved countries A) True. B) False. Show Answer Correct Answer: A) True. 8. Define trade deficit. A) An economic condition where a country imports more goods and services than it exports. B) An economic condition where a country imports and exports an equal amount of goods and services. C) An economic condition where a country does not import or export any goods or services. D) An economic condition where a country exports more goods and services than it imports. Show Answer Correct Answer: A) An economic condition where a country imports more goods and services than it exports. 9. ..... decrease in the value of a currency relative to other currencies. If the value of the dollar decreases, it means that Americans can't buy as much when they travel or imports products. A) Appreciation. B) Depreciation. C) Trade barriers. D) Import quotas. Show Answer Correct Answer: B) Depreciation. 10. When was WTO established? A) 1 January 1947. B) 1 January 1948. C) 1 January 1994. D) 1 January 1995. Show Answer Correct Answer: D) 1 January 1995. 11. It is one of the most famous ancient trading route. This route connected China and Ancient Roman Empire. A) Silk Road. B) Spice Route. C) Salt Route. D) None of above. Show Answer Correct Answer: A) Silk Road. 12. Lack of technology forced the country to A) Exporting goods and services. B) Importing goods and services. Show Answer Correct Answer: B) Importing goods and services. 13. Duties imposed on imports A) Excise duty. B) Custom duty. C) Tariffs. D) None. Show Answer Correct Answer: C) Tariffs. 14. Name one disadvantage of international trade. A) Job loss in domestic industries. B) Decreased national security. C) Increased competition. D) Loss of cultural identity. Show Answer Correct Answer: A) Job loss in domestic industries. 15. The manufacturing and/or sale of goods and/or services to satisfy the wants and needs of consumers to make a profit is: A) Domestic. B) International. C) Tariff. D) Business. Show Answer Correct Answer: D) Business. 16. To correct an adverse balance of payments, a government may A) Reduce credits. B) Increase exports. C) Reduce import tax. D) Increase the money supply. Show Answer Correct Answer: B) Increase exports. 17. Protects infant industries, hurts domestic workers, labor standards are not the same, and to protect national security. A) Arguments against free trade. B) Arguments for free trade. Show Answer Correct Answer: A) Arguments against free trade. 18. What is the impact of international trade on the efficiency and prices of goods and services, and how does it relate to the standard of living for people in different countries? A) International trade allows countries to specialize in the production of goods and services in which they have a comparative advantage, leading to increased efficiency and lower prices. This, in turn, can lead to higher standards of living for people in different countries. B) International trade leads to higher prices and lower efficiency in production. C) International trade has no impact on the standard of living for people in different countries. D) International trade only benefits one country and harms others. Show Answer Correct Answer: A) International trade allows countries to specialize in the production of goods and services in which they have a comparative advantage, leading to increased efficiency and lower prices. This, in turn, can lead to higher standards of living for people in different countries. 19. Which method of protection always reduces the supply of an imported good to zero? A embargo B quota C subsidy D tariff A) A. B) B. C) C. D) D. Show Answer Correct Answer: A) A. 20. A trade barrier that sets a legal limit of imports A) Quota. B) Embargo. C) Tariff. D) Subsidy. Show Answer Correct Answer: A) Quota. ← 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