This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 165 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 165 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The Government's approach to innovation and science fosters globally competitive businesses and institutions that provide better paying jobs. A) True. B) False. Show Answer Correct Answer: A) True. 2. What is the main goal of a free trade agreement? A) To increase tariffs on imported goods. B) To restrict trade between countries. C) To eliminate trade barriers and promote economic cooperation. D) To encourage trade imbalances. Show Answer Correct Answer: C) To eliminate trade barriers and promote economic cooperation. 3. Which of the following is the value of the output produced by a unit of labor or capital? A) Creativity. B) Exports. C) Productivity. D) Imports. Show Answer Correct Answer: C) Productivity. 4. The condition that exists when someone can produce a good or service using fewer resources than someone else. A) Absolute Advantage. B) Comparative Advantage. Show Answer Correct Answer: A) Absolute Advantage. 5. The Philippines is the world's second-largest producer of ..... Hence, our country has the absolute advantage in Asia when it comes to producing this product. A) Banana. B) Pineapple. C) Coconut. D) None of above. Show Answer Correct Answer: C) Coconut. 6. The followings are true statements about the relation between interest rate and trade balance except A) An increase in interest rate can lead to an increase in the price of exports. B) When trade deficits rise, the interest rates also go up. C) Higher interest rates mean a stock market that declines in value. D) Higher interest rates tend to attract foreign investment, decreasing the demand for and value of the home country's currency. Show Answer Correct Answer: D) Higher interest rates tend to attract foreign investment, decreasing the demand for and value of the home country's currency. 7. A quantity of goods or services a country can sell A) Need. B) Want. C) Supply. D) Demand. Show Answer Correct Answer: C) Supply. 8. The Chinese government gave billions of RMB to support the e-car industry. What type of trade barrier is it? A) Standard. B) Quota. C) Subsidy. D) Tariff. Show Answer Correct Answer: C) Subsidy. 9. The United States buys coffee beans from Brazil. This is an ..... A) Export. B) Import. Show Answer Correct Answer: B) Import. 10. State activities to bring in goods or services from abroad are called..... A) Impor. B) Export. C) Importer. D) Exporter. Show Answer Correct Answer: A) Impor. 11. An invisible Export is ..... A) A service that has been brought in from another country. B) A service that has been sold to another country. C) A physical good that has been brought in from another country. D) A physical good that has been sold to another country. Show Answer Correct Answer: B) A service that has been sold to another country. 12. A major cost of freer trade from poor nations is that they will A) Get cheaper stuff. B) They will get more stuff. C) Environmental damage. D) Greater variety of stuff. Show Answer Correct Answer: C) Environmental damage. 13. The activity of selling goods from within the country to abroad is called..... A) Exporter. B) Export. C) Importer. D) Impor. Show Answer Correct Answer: B) Export. 14. Japan can produce either 90 cars or 110 pounds of soybeans and South Korea can produce either 50 cars or 80 pounds of soybeans. Which of the following statements is true? A) South Korea has the comparative advantage in cars and should specialize in producing cars. B) South Korea has an absolute advantage in both cars and soybeans and should specialize in both. C) Japan has the comparative advantage in cars and should specialize in producing cars. D) Japan has the comparative advantage in soybeans and should specialize in producing soybeans. Show Answer Correct Answer: C) Japan has the comparative advantage in cars and should specialize in producing cars. 15. What encourages international specialisation? A a foreign exchange shortage B diseconomies of scale C free trade D quotas A) A. B) B. C) C. D) D. Show Answer Correct Answer: C) C. 16. The driving factor for international trade for a country is..... A) Looking for maximum profit. B) Low quality of natural resources. C) Import Restrictions. D) Prosperity for society. Show Answer Correct Answer: D) Prosperity for society. 17. Which of the following can be done with international trade? A) Food. B) Machinery. C) All of the above. D) Consumer goods. Show Answer Correct Answer: C) All of the above. 18. Following is the reason underlying trade between nations: A) The unequal distribution of natural resources. B) The differences in their productivity level. C) Both of the above. D) None of the above. Show Answer Correct Answer: C) Both of the above. 19. Based on GATT provisions, a product is said to be dumped when..... A) The price value of goods being marketed is above the price of similar products. B) The price value of the goods being marketed is the same as the value of similar priced products. C) The price value of goods marketed is below the price of similar products. D) The value of the marketed goods rises periodically. Show Answer Correct Answer: C) The price value of goods marketed is below the price of similar products. 20. Why was the Chinese steel industry facing a crisis? A) Surplus of steel with decrease of steel demand. B) Natural disasters. C) Unemployment rates. D) Increase of demand. Show Answer Correct Answer: A) Surplus of steel with decrease of steel demand. ← 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