This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 24 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 24 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The worth of the countries money in terms of another country A) Exchange rates. B) Appreciation. C) Depreciation. D) None of the above. Show Answer Correct Answer: A) Exchange rates. 2. When countries create tariffs, they ..... A) Remove restrictions on imports. B) Place limits on the amount of goods that can be imported. C) Set taxes on imported goods. D) Create common currencies. Show Answer Correct Answer: C) Set taxes on imported goods. 3. Before reading this chapter, to what extent did you prefer to buy products made in your own country? A) I didn't have a preference for products made in my own country. B) I always preferred products made in my own country. C) I preferred products made in my own country to some extent. D) I preferred products made in other countries. Show Answer Correct Answer: C) I preferred products made in my own country to some extent. 4. Who was know as the father of modern economics and believed in capitalism? A) Karl Marx. B) Adam Smith. C) Robert Smith. D) Jeffrey Sachs. Show Answer Correct Answer: B) Adam Smith. 5. A statement that is NOT a scope of international trade activities is ..... A) Indonesia regularly sends workers to several ASEAN countries. B) Mr. Rudi, an Indonesian citizen, sells goods to an Australian colleague who lives in Semarang. C) During the fasting month, imports of dates from Saudi Arabia increase to meet domestic needs. D) Taiwan sells agricultural feed products to Thailand. Show Answer Correct Answer: B) Mr. Rudi, an Indonesian citizen, sells goods to an Australian colleague who lives in Semarang. 6. What are the key concepts of international trade? A) The key concepts of international trade include comparative advantage, tariffs, quotas, trade agreements, exchange rates, and balance of payments. B) The key concepts of international trade include computer programming languages, smartphone features, and social media platforms. C) The key concepts of international trade include gardening tips, movie reviews, and music genres. D) The key concepts of international trade include cooking techniques, fashion trends, and sports events. Show Answer Correct Answer: A) The key concepts of international trade include comparative advantage, tariffs, quotas, trade agreements, exchange rates, and balance of payments. 7. It can hurt developing countries as it can be difficult to complete with the world powers A) Pro. B) Con. Show Answer Correct Answer: B) Con. 8. Which of the following is FALSE about the internal economies of scale? A) Occur when the cost per unit of output depends on the size of a firm, not necessarily on the size of industry. B) Imperfectly competitive market structure. C) Perfectly competitive market structure. D) Give large firms a cost advantage over small firms. Show Answer Correct Answer: C) Perfectly competitive market structure. 9. This term means thtat the seller must pay all costs related to getting the goods to port and onto the ship. A) FOB. B) CFR. Show Answer Correct Answer: A) FOB. 10. What are some barriers of international trade? A) Subsidies. B) Tariffs. C) Standardization. D) All of the above. Show Answer Correct Answer: D) All of the above. 11. An import tariff of $ 10 per unit of imported good imposed by a large country A) Increases the price of this good in the importing country by less than $ 10 and lowers export prices. B) Increases the price of this good in the importing country by more than $ 10 and raises export prices. C) Increases the price of this good in the importing country by $ 10 and leaves export prices unaffected. D) Increases the volume of exports of that good by foreigners. Show Answer Correct Answer: A) Increases the price of this good in the importing country by less than $ 10 and lowers export prices. 12. ..... defines the detailed obligations of both commercial parties in relation to the payment, not only the form of payment and when and where this payment shall be made by the buyer, but also the obligations of the seller to deliver according to the contract. A) Methods of payment. B) Terms of payment. C) Time value of money. D) Competitive situation. Show Answer Correct Answer: B) Terms of payment. 13. Which of the following can be considered a negative consequence (or cost) of implementing protectionism in the short run? A) Higher inflation. B) Higher unemployment. C) Slower economic growth. D) Worsening balance of payments. Show Answer Correct Answer: A) Higher inflation. 14. Goods and services sold to other countries. A) Imports. B) Corporate. C) Exports. D) Embargo. Show Answer Correct Answer: C) Exports. 15. The policy of imposing duties or quotas on imports in order to protect home industries from overseas competition A) Free trade. B) Balance of trade. C) Protectionism. D) Internationalism. Show Answer Correct Answer: C) Protectionism. 16. In most cases, what determines the goods and services a country decides to export? A) The World Trade Organization. B) When a country has comparative advantage or an absolute advantage. C) Globalization. D) All of the above. Show Answer Correct Answer: B) When a country has comparative advantage or an absolute advantage. 17. The ability of a country to produce goods at a lower opportunity cost than another country is called A) Comparative advantage. B) Absolute advantage. Show Answer Correct Answer: A) Comparative advantage. 18. When one producer can create a given amount of output with fewer inputs, what exists? A) Absolute advantage. B) Comparative advantage. C) Comparative disadvantage. D) Absolute disadvantage. Show Answer Correct Answer: A) Absolute advantage. 19. What is a benefit of a tariff? A) Decreased prices for consumers. B) Increase in competition for producers. C) Government revenue. D) Dead-Weight Loss. Show Answer Correct Answer: C) Government revenue. 20. Today, countries seen by others as trying to maintain a trade surplus and expand their national treasures at the expense of other nations are accused of practicing ..... A) Totalitarianism. B) Anti-mercantilism. C) Social stratification. D) Economic nationalism. Show Answer Correct Answer: D) Economic nationalism. ← 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