This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 182 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 182 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Define free trade and its benefits. A) Free trade is the unrestricted exchange of goods and services between countries without the imposition of tariffs, quotas, or other restrictions. Its benefits include lower prices for consumers, increased economic growth, and access to a wider variety of goods and services. B) Free trade is the restriction of exchange of goods and services between countries with the imposition of high tariffs and quotas. C) Free trade leads to unemployment and economic stagnation. D) Free trade benefits only the wealthy and powerful corporations. Show Answer Correct Answer: A) Free trade is the unrestricted exchange of goods and services between countries without the imposition of tariffs, quotas, or other restrictions. Its benefits include lower prices for consumers, increased economic growth, and access to a wider variety of goods and services. 2. What are payments made by the government and given to producers to be a contender with competitors? A) Standards. B) Subsidies. C) Loans. D) Grants. Show Answer Correct Answer: B) Subsidies. 3. The United States trade deficit, along with declining value of the dollar, causes which of the following? A) The value of the dollar to fall in foreign exchange markets. B) Increased employment opportunities for Americans in import industries. C) Worldwide recessions. D) The value of the dollar to strengthen in foreign exchange markets. Show Answer Correct Answer: A) The value of the dollar to fall in foreign exchange markets. 4. More imports than exports is a ..... for a country. A) Balance of payment. B) The trade fails. C) Trade surplus. D) Balance of trade. Show Answer Correct Answer: B) The trade fails. 5. Which of the following is not a factor that motivates political pressures for greater trade protection? A) High unemployment among domestic workers. B) A large trade deficit. C) The belief that other countries are dumping their exports. D) High levels of profits of domestic firms. Show Answer Correct Answer: D) High levels of profits of domestic firms. 6. Complete:Molly's car is in the repair shop every month. What a ..... ! A) Miss out. B) Split the difference. C) Lemon. D) Haggled. Show Answer Correct Answer: C) Lemon. 7. It occurs when a country's exports exceed its imports, leading to a positive balance of trade. This can be seen as a favorable economic indicator. A) Trade surplus. B) Trade agreement. Show Answer Correct Answer: A) Trade surplus. 8. The following free market organizations in the Southeast Asia region that sell goods to member countries of the organization are..... A) THING. B) APEC. C) OPEC. D) Capable. Show Answer Correct Answer: D) Capable. 9. Which international trade theory states that a country's comparative advantage in the production of a particular commodity is determined by local availability of resources? A) Absolute advantage. B) Comparative advantage. C) Factor endownments theory. D) Heckscher and Ohlin. Show Answer Correct Answer: C) Factor endownments theory. 10. Payments made by the government and given to producers to be a contender with competitors A) Subsidies. B) Standards. C) Quotas. D) Embargoes. Show Answer Correct Answer: A) Subsidies. 11. Which Incoterm applies when the seller's obligations end once the goods are packed for transportation? A) FOB. B) CIF. C) EX-WORKS. D) None of above. Show Answer Correct Answer: C) EX-WORKS. 12. What is the background of AFTA establishment? A) Internal changing in economy. B) External Changing in economy. C) Free Trade Agreement. D) To attract more foreign investment. Show Answer Correct Answer: D) To attract more foreign investment. 13. Which one of these are examples of emerging markets A) UK and USA. B) Russia, China and India. C) Turkey, Mexico and Iran. D) Europe. Show Answer Correct Answer: C) Turkey, Mexico and Iran. 14. People are allowed to own businesses and set prices: A) Traditional Economy. B) Market Economy. C) Command Economy. D) None of above. Show Answer Correct Answer: B) Market Economy. 15. .... are those gains which accumulates over a period of time. A) Static gains. B) Gains. C) Dynamic gains. D) Gains from international trade. Show Answer Correct Answer: D) Gains from international trade. 16. Though in most cases a free trade agreement doesn't truly mean free trade, such agreements are aimed at reducing or eliminating tariffs, quotas and other trade restrictions A) True. B) False. Show Answer Correct Answer: A) True. 17. If the U.S. government places a quota on wheat, it is to ..... A) Restrict the quantity of wheat U.S. wheat producers can sell abroad. B) Raise government revenues from imports of wheat to the U.S. C) Restrict the quantity of wheat that can be imported. D) Shift the domestic supply curve to the right in order to lower domestic wheat prices. Show Answer Correct Answer: C) Restrict the quantity of wheat that can be imported. 18. What is not associated with greater economic integration between countries? A increased financial flows B increased quotas C increased trade creation D increased trade diversion A) A. B) B. C) C. D) D. Show Answer Correct Answer: B) B. 19. A disadvantage of specialisation:Specialisation can have negative impacts on a country's economy. For example, if a country begins to specialise in a particular industry, other industries may decline, and workers from those industries may struggle to get work (as they might not have the relevant skills). A) Yes, I understand this from the notes. B) No, I don't understand this from the notes. C) No, I don't understand this, as I have not read the notes. D) None of above. Show Answer Correct Answer: A) Yes, I understand this from the notes. 20. The cheap foreign labor argument is a legitimate argument against free trade because cheap labor leads to lower costs of production. A) True. B) False. Show Answer Correct Answer: B) False. ← 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