This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 202 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 202 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The theory of specializing in what we can do fastest and cheapest is called A) Competition. B) Absolute advantage. C) Specialization. D) Comparative advantage. Show Answer Correct Answer: B) Absolute advantage. 2. Everybody was confused by the end of the presentation so the professor ..... that the programme would start in December. A) Pointed out. B) Mentioned. Show Answer Correct Answer: A) Pointed out. 3. New Zealand goods are very expensive. Norway's goods are cheaper. What would happen the level of GDP of each country if they entered into a trade agreement? A) New Zealands increase, Norway decrease. B) New Zealands decrease, Norway decrease. C) New Zealands increase, Norway increase. D) New Zealands decrease, Norway increase. Show Answer Correct Answer: D) New Zealands decrease, Norway increase. 4. Who has the Comparative advantage in Coffee? A) Peru. B) Colombia. C) Neither. D) Unknown. Show Answer Correct Answer: A) Peru. 5. Rich countries have deficit in their balance of payments A) Sometimes. B) Never. C) Alternate years. D) Always. Show Answer Correct Answer: A) Sometimes. 6. What are the seven main instruments of trade policy? A) Tariffs, subsidies, import quotas, voluntary export restraints, local content requirements, administrative policies, antidumping duties. B) Tariffs, subsidies, export quotas, voluntary import restraints, local content requirements, administrative policies, antidumping duties. C) Tariffs, subsidies, import quotas, voluntary export restraints, local content requirements, administrative policies, export tariffs. D) Tariffs, subsidies, import quotas, voluntary export restraints, local content requirements, administrative policies, export bans. Show Answer Correct Answer: A) Tariffs, subsidies, import quotas, voluntary export restraints, local content requirements, administrative policies, antidumping duties. 7. The ..... is a trade agreement between Canada, Mexico, and the U.S. A) USMCA. B) EU. C) WTO. D) TPP. Show Answer Correct Answer: A) USMCA. 8. Country will produce only ONE product that it has absolute advantage. This refers to: A) Absolute advantage. B) Comparative advantage. C) Efficiency. D) Specialization. Show Answer Correct Answer: D) Specialization. 9. 9/ In the context of international trade with external economies, what is the primary driver of specialization and trade patterns among countries? A) Currency exchange rates. B) Government subsidies. C) Comparative advantage. D) Consumer preferences. Show Answer Correct Answer: C) Comparative advantage. 10. Wha does Literacy rate refer to? A) It refers to the number of people who can read and write in a country. B) It refers to the number of books students read in a year. C) It refers to the number of schools in a country. D) None of above. Show Answer Correct Answer: A) It refers to the number of people who can read and write in a country. 11. Which on of the following is a main characteristic of a less-developed economy A) Relatively low per capita income. B) Population decline. C) Low dependency ratio. D) High levels of productivity. Show Answer Correct Answer: A) Relatively low per capita income. 12. Which will increase exports in a country? A) An increase in Aggregate Demand. B) A decrease in income taxes. C) Depreciation of the nation's currency. D) Appreciation the nation's currency. E) An increase in the nation's budget deficit. Show Answer Correct Answer: C) Depreciation of the nation's currency. 13. It is a characteristic of a society with a high degree of division of labor, where people depend on each other for goods and services required to sustain life and living ..... ? A) DIVISION IN ECONOMICS. B) CONNECTIVITY. C) ECONOMIC INTERDEPENDENCE. D) ECONOMIC REASONS. Show Answer Correct Answer: C) ECONOMIC INTERDEPENDENCE. 14. Which one is not the activity of Trade in goods? A) Switch trade. B) International processing. C) Exports and imports. D) Consumption abroad. Show Answer Correct Answer: D) Consumption abroad. 15. The North Pole's currency can buy more stuff than Jupiter's currency. The North Pole's currency is A) Strong. B) Weak. C) Going to inflate. D) None of above. Show Answer Correct Answer: A) Strong. 16. What is the impact of international trade on employment? A) Increased unemployment due to import competition. B) Decreased job opportunities in domestic markets. C) Limited impact on employment levels. D) Increased job opportunities due to export expansion. Show Answer Correct Answer: D) Increased job opportunities due to export expansion. 17. Arab league is an example of a A) State. B) International Organization. Show Answer Correct Answer: B) International Organization. 18. If a production possibility frontier intersects the x-axis at 5 units then the A) Producer should only consume the x-axis good. B) Producer has an absolute advantage. C) Slope of the ppf is-2. D) Producer is more efficient at producing the x-axis good. E) Producer prefers to producer the x axis good. Show Answer Correct Answer: D) Producer is more efficient at producing the x-axis good. 19. It's a contract or agreement between an exporter and a transportation company. It contains a list of the goods being carried and it must remain with the merchandise at all times. A) BILL OF LADING (BL). B) LETTER OF CREDIT. C) CERTIFICATE OF QUALITY. D) None of above. Show Answer Correct Answer: A) BILL OF LADING (BL). 20. How many formats are there in INCOTERMS 2020? A) 4. B) 7. C) 9. D) 11. Show Answer Correct Answer: D) 11. ← 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