This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 183 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 183 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. An individual decides to reduce their spending and save more of their income this is a ..... and ..... A) Injection, consumption. B) Leakage, savings. C) Injection, taxation. D) Leakage, consumption. Show Answer Correct Answer: B) Leakage, savings. 2. This is the exchange of capital, goods and services across international borders and territories. A) Internal trade. B) International trade. C) International business. D) Export. Show Answer Correct Answer: B) International trade. 3. Because of international trade, goods are available at a cheaper cost. A) True. B) False. Show Answer Correct Answer: A) True. 4. Using a tariff to protect developing industries until they mature and are able to compete with foreign firms benefits all consumers and producers in the domestic country. A) True. B) False. Show Answer Correct Answer: B) False. 5. Choose the correct answer: "International Trade is ..... " A) The exchange across national borders of goods and services. B) Just as complex as domestic trade. C) Simpler in this decade because the trade environment is more transparent. D) Not affected by the exchange rate. Show Answer Correct Answer: A) The exchange across national borders of goods and services. 6. When we add the visible balance to the invisible balance, the new figure is called A) The balance of payments. B) The balance of trade. Show Answer Correct Answer: A) The balance of payments. 7. A tax that is designed to create funds for a government is called A) Custom tariff. B) Protective tariff. C) Revenue tariff. D) None of above. Show Answer Correct Answer: C) Revenue tariff. 8. The following are considered Remittance Modes of Payment except ..... A) Open Account. B) Direct Remittance. C) Advance Payment. D) Documents Against Payment. Show Answer Correct Answer: D) Documents Against Payment. 9. Which one of the following is a main feature of a customs union A) Adoption of a common external tariff. B) Establishment of quotas between member countries. C) Removal of common external tariffs on imports from non member countries. D) Adoption of a common currency between member countries. Show Answer Correct Answer: A) Adoption of a common external tariff. 10. Which of the following was NOT a goal of the GATT as stated in the presentation? A) Expand exchange of goods. B) Encourage free trade. C) Regulate and reduce tariffs. D) Eliminate supply and demand. Show Answer Correct Answer: D) Eliminate supply and demand. 11. Definition of Bargaining A) Careful about what you say so that you don't upset or embarrass anyone. B) A thing bought or offered for sale much more cheaply than is usual or expected. C) Pretend something in order to achieve what you want. D) Accept less than what you originally wanted in order to reach an agreement. Show Answer Correct Answer: B) A thing bought or offered for sale much more cheaply than is usual or expected. 12. 2/What is the ambiguous effect on external economies? A) Trade based on external economies has an ambiguous effect on national welfare. B) There will be gains to the world economy by concentrating production of industries with external economies. C) Both A and B are correct. D) Both A and B are incorrect. Show Answer Correct Answer: C) Both A and B are correct. 13. What are important details to consider when determining Duty and Tax rates for goods? A) Transportation distance. B) Quantity & Weight of Goods. C) Geographical region. D) Exchange rate. Show Answer Correct Answer: B) Quantity & Weight of Goods. 14. Trade based on external economies has a/an ..... on national welfare. A) Negative effect. B) Positive effect. C) Ambiguous effect. D) Clear effect. Show Answer Correct Answer: C) Ambiguous effect. 15. One of the BRICS, characterized by its young growing population, abundant natural resources and manufacturing industry A) Russia. B) Brazil. C) China. D) None of above. Show Answer Correct Answer: B) Brazil. 16. When the dollar falls in relation to foreign currencies, American consumers can buy imported goods more cheaply. A) True. B) False. Show Answer Correct Answer: B) False. 17. Rules used to try to limit trade with other countries A) Embargo. B) Tariff. C) Trade barriers. D) Quota. Show Answer Correct Answer: C) Trade barriers. 18. ..... is known as a tax levied on goods passing through the country. A) Transit Tariff. B) Dumping. C) Quota. D) Export Subsidies. Show Answer Correct Answer: A) Transit Tariff. 19. The least affected sectors were:agriculture, livestock, hunting, forestry and fishing? A) FALSE. B) TRUE. Show Answer Correct Answer: B) TRUE. 20. Which of the following scenarios would cause the nation's money supply to increase? A) Decreasing government spending. B) Lowering interest rates. C) Raising interest rates. D) Selling bonds to investors. Show Answer Correct Answer: B) Lowering interest rates. ← 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