This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 34 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 34 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Factors of production include labor, capital, and raw material for producing goods and services that are available at different rates in different countries. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 2. Exports exceed imports A) Trade surplus. B) The trade fails. C) Surplus. D) Balance of trade. Show Answer Correct Answer: A) Trade surplus. 3. What is the meaning of exchange rate? A) The value of one currency in terms of another currency. B) The cost of exchanging one currency for another. C) The interest rate at which banks lend money to each other in the foreign exchange market. D) The rate at which a country's currency can be exchanged for gold. Show Answer Correct Answer: A) The value of one currency in terms of another currency. 4. "advising bank" = banco notificador A) True. B) False. Show Answer Correct Answer: A) True. 5. Rate of increase of prices in a country each year A) GDP. B) Spot Rate. C) Inflation Rate. D) Interest Rate. Show Answer Correct Answer: C) Inflation Rate. 6. There is a strong empirical relationship between the size of a country's economy and what? A) Volume of Both Imports and Exports. B) Volume of Primary and Manufactured Goods. C) Volume of GDP and GNP. D) Volume of Goods and Services. Show Answer Correct Answer: A) Volume of Both Imports and Exports. 7. The president Trump has enacted tariff barriers China against China and a lot of people worried that China might retaliate and enact the same tariff barriers? This event involving: A) Trade war. B) A misallocation of recources. C) The national security. D) The national of domestic jobs. Show Answer Correct Answer: A) Trade war. 8. For the same question above (Japan can produce either 90 cars or 110 pounds of soybeans and South Korea can produce either 50 cars or 80 pounds of soybeans.) What will be the right range of terms of trade for the two countries to be willing to trade? A) 1.8 soybeas per car < TOT < 3.0 soybeas per car. B) 0.5 soybeas per car < TOT < 1.6 soybeas per car. C) 1.2 soybeas per car < TOT < 1.6 soybeas per car. D) 1.0 soybeas per car < TOT < 1.5 soybeas per car. Show Answer Correct Answer: C) 1.2 soybeas per car < TOT < 1.6 soybeas per car. 9. The theory of absolute advantage measures a nation's wealth by determining the ..... A) Amount of gold it has on reserve. B) Quantity of minerals it has on reserve. C) Total trade volume in the country. D) Living standards of its people. Show Answer Correct Answer: D) Living standards of its people. 10. Question 3:Export/Import financing in which a bank acts as an intermediary without accepting financial risk is called ..... A) Documentary credit. B) Documentary collection. C) Open account. D) Advance payment. Show Answer Correct Answer: B) Documentary collection. 11. Is principle refers to the ability of a party (an individual, firm, or country) to produce more of a good product or service than competitors, using the same number of resources A) Absolute advantage. B) Recardian theory. C) Ricardo Theory. D) Comparison Advantage. Show Answer Correct Answer: A) Absolute advantage. 12. FOB A) Free of Boat. B) Free on Board. Show Answer Correct Answer: B) Free on Board. 13. The United States government raises the tariff on television sets to make the foreign sets sell for 10% more than those produced in America. Which of the following would result from changing tariff on these products? A) The price of TV's will decrease. B) Consumer's standard of living will increase. C) Consumer's standard of living will not be effected. D) Consumer's standard of living will decrease. Show Answer Correct Answer: D) Consumer's standard of living will decrease. 14. Which industry is responsible for enabling international customers to purchase goods from abroad? A) Editing and publishing. B) Landscaping and gardening. C) International trading. D) Sports event organization. Show Answer Correct Answer: C) International trading. 15. ..... is a function of international trade whereby goods produced in one country are shipped to another country for future sale or trade. A) Tariff. B) Trade. C) Export. D) Import quota. Show Answer Correct Answer: C) Export. 16. One of the following must be used as a starting point in order to perform an analysis that will determine what the connections between imbalances of trade in goods and services and the flows of international financial capital are. Which one is it? A) Sketch patterns of trade deficits. B) Sketch patterns of trade surpluses. C) Define the level of trade. D) Define the balance of trade. Show Answer Correct Answer: D) Define the balance of trade. 17. India signed a free trade agreement with A) South korea and north korea. B) Myanmar and ASEAN. C) South korea and ASEAN. D) China and hong kong. Show Answer Correct Answer: C) South korea and ASEAN. 18. What is the extra profit that producers make when supply is artificially limited by an import quota called? A) Tariff rate quota. B) Voluntary export restraint. C) Quota rent. D) Antidumping duty. Show Answer Correct Answer: C) Quota rent. 19. ..... are taxes on ..... A) Quotas, exports. B) Quotas, imports. C) Tariffs, exports. D) Tariffs, imports. Show Answer Correct Answer: D) Tariffs, imports. 20. What is one limitation of the theory of comparative advantage regarding the assumption of constant technology? A) It assumes that technology remains constant. B) It assumes that countries produce identical goods. C) It assumes that every country should specialize in producing the good with the lowest opportunity cost. D) It assumes that everyone has the same knowledge of prices and quantities in the market at the same time. Show Answer Correct Answer: A) It assumes that technology remains constant. ← 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