This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 31 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 31 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Because of international trade, there is a wider variety of goods available. A) True. B) False. Show Answer Correct Answer: A) True. 2. Country A produces a ton of coffee using one unit of resources. Country B produces two tons of coffee using one unit of resources. Which of the following is true regarding Country A and Country B? A) Country B has an absolute advantage in producing coffee. B) Both Country A and Country B have an absolute advantage in producing coffee. C) Neither Country A nor Country B has an absolute advantage in producing coffee. D) Country A has an absolute advantage in producing coffee. Show Answer Correct Answer: A) Country B has an absolute advantage in producing coffee. 3. Trade restrictions hurt A) Consumers. B) Workers in exporting industries. C) Both. D) None of above. Show Answer Correct Answer: C) Both. 4. What is the purpose of tariffs? A) To raise government revenues. B) To protect domestic producers. C) To force consumers to pay more for certain imports. D) All of the above. Show Answer Correct Answer: D) All of the above. 5. This instrument in Trade Policy is a policy that partially or entirely restricts the export of a good. A) Import Ban. B) Export Ban. C) Import Tariff Ban. D) Export Tariff Ban. Show Answer Correct Answer: B) Export Ban. 6. If the level of imports (M) exceeds exports (X) then the level of economic activity (output and income) will A) Expand. B) Will initially expand then contract. C) Remain neutral. D) Contract. Show Answer Correct Answer: D) Contract. 7. Laws which recognize health and safety requirements on imported goods A) OSHA. B) ACLU. C) Department Health Education & Welfare. D) Standards. Show Answer Correct Answer: D) Standards. 8. What is comparative advantage in international trade? A) Ability of a country to produce a good or service without considering opportunity cost. B) Ability of a country to produce a good or service at a higher opportunity cost than other countries. C) Ability of a country to produce a good or service at the same opportunity cost as other countries. D) Ability of a country to produce a good or service at a lower opportunity cost than other countries. Show Answer Correct Answer: D) Ability of a country to produce a good or service at a lower opportunity cost than other countries. 9. Trade Deficit occurs when: A) Exports exceed imports. B) Imports exceed exports. C) There is a balance between imports and exports. D) There is no international trade. Show Answer Correct Answer: B) Imports exceed exports. 10. In how many cases can the insured refuse to accept the insured amount? A) 2. B) 6. C) 5. D) 4. Show Answer Correct Answer: D) 4. 11. Negotiation activities are necessary if: A) Involves large risks and costs. B) Limited/few suppliers. C) Long-term cooperation is needed. D) A, B and C are correct. Show Answer Correct Answer: D) A, B and C are correct. 12. Which country are not a member of WTO? A) Taiwan. B) North Korea. C) Macao. D) China. Show Answer Correct Answer: B) North Korea. 13. What are multinational corporations (MNCs)? A) Businesses that operate and trade in more than one country. B) Businesses that operate and trade in a specific region. C) Businesses that operate and trade in a specific industry. D) Businesses that operate and trade in only one country. Show Answer Correct Answer: A) Businesses that operate and trade in more than one country. 14. Government policies that restrict trade A) Trade Barriers. B) Free Trade. C) Trade surplus. D) Trade fails. Show Answer Correct Answer: A) Trade Barriers. 15. What does the acronym APEC stand for? A) Asia-Pacific Economic Collaboration. B) Asia-Pacific Economic Cooperation. C) Asia-Pacific Economic Organization. D) Asia-Pacific Economic Consumption. Show Answer Correct Answer: B) Asia-Pacific Economic Cooperation. 16. The following are valid reasons for state's interference in international trade except A) Protection of national prestige. B) Protection of domestic industries. C) Infant-industry argument. D) Revenues. Show Answer Correct Answer: A) Protection of national prestige. 17. ..... intelligence is becoming bigger in our world. A) Flagship. B) Cargo. C) Artificial. D) Offshore. Show Answer Correct Answer: C) Artificial. 18. Which country is making a successful transition to market economics and is emerging as the world's second-largest economy? A) Russia. B) United States. C) China. D) Germany. Show Answer Correct Answer: C) China. 19. To promote, assist and develop Malaysias external trade with particular emphasis on the export of manufactured and semi manufactured products and on selective basisi, imports. A) MIDF. B) MATRADE. C) MAY. D) HDC. Show Answer Correct Answer: B) MATRADE. 20. Which of the following is a form of trade barrier? A) Quota. B) Praise. C) Embargo. D) All of the above. Show Answer Correct Answer: D) All of the above. ← 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