This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 45 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 45 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Advantage of specialization by a country A) Country improves its efficiency. B) Low productivity. C) Labour turnover. D) Lack of skill. Show Answer Correct Answer: A) Country improves its efficiency. 2. Dollars = 6 British Pounds 10 dollars = 7 Swiss Francs2019-10 dollars = 4 British Pounds 10 dollars = 8 Swiss Francs Which country would see an increase in American travelers? A) U.S. B) Switzerland. C) Great Britain. D) Coach Hayes. Show Answer Correct Answer: B) Switzerland. 3. It makes it possible for each country to produce a restricted range of goods and to take advantage of economies of scale without sacrificing variety of consumption. A) Economies of Scale. B) International Trade. C) Trade Agreement. D) Comparative Advantage. Show Answer Correct Answer: B) International Trade. 4. Opposite of 'increase' A) Fall. B) Climb. C) Rise. D) Upwards. Show Answer Correct Answer: A) Fall. 5. Unemployment A) Exists when someone is looking for a job, but is enable to find one. B) Exists when someone is looking for a job, but is able to find one. Show Answer Correct Answer: A) Exists when someone is looking for a job, but is enable to find one. 6. The main promoter of trade liberalization and settlement of dispute A) USMCA. B) WTO. C) OPEC. D) EU. Show Answer Correct Answer: B) WTO. 7. Which of the following is NOT a level of economic integration? A) Political union. B) Custom union. C) Free trade. D) Political democracy. Show Answer Correct Answer: D) Political democracy. 8. In an hour, David can wash 2 cars or mow 1 lawn, and Ron can wash 3 cars or mow 1 lawn. Who has the absolute advantage in car washing, and who has the absolute advantage in lawn mowing? A) David in washing, Ron in mowing. B) Ron in washing, David in mowing. C) David in washing, neither in mowing. D) Ron in washing, neither in mowing. Show Answer Correct Answer: D) Ron in washing, neither in mowing. 9. What is another way to accommodate a deficit in the balance of payments? A) Reducing exports. B) Eliminating all restrictions. C) Drawing on (removing some of) the reserves. D) Limiting the money supply. Show Answer Correct Answer: C) Drawing on (removing some of) the reserves. 10. Trading partners who are signatories of the GATT, as most are, automatically receive MFN status. A) True. B) False. Show Answer Correct Answer: B) False. 11. If Maybank has an account in a Singaporean Bank, it is:- A) Nostro Account. B) Your Account. Show Answer Correct Answer: A) Nostro Account. 12. Brazil is leading producer of sugarcane and the United States is the leading producer of crude oil. Based on this information, why should Brazil trade with the United States? A) The United States has an absolute advantage in sugarcane and crude oil. B) Brazil has an absolute advantage in sugarcane and the United States has an absolute advantage in crude oil. C) Brazil has an absolute advantage in crude oil and the United States has an absolute advantage in sugarcane. D) Brazil has an absolute advantage in sugarcane and crude oil. Show Answer Correct Answer: B) Brazil has an absolute advantage in sugarcane and the United States has an absolute advantage in crude oil. 13. Marcopolo traveled from Europe to which country A) America. B) China. C) UK. D) Singapore. Show Answer Correct Answer: B) China. 14. The principle that a country benefits from specializing in the production at which it is relatively most efficient thus has the comparative advantage. This is true because of lower opportunity costs A) Law of Comparative Advantage. B) Globalization. C) Law of Incresing Costs. D) Exports. Show Answer Correct Answer: A) Law of Comparative Advantage. 15. It enables the managers to walk away from a decision that is profitable, but unethical. A) Decision-making process. B) Ethics officers. C) Moral courage. D) None of above. Show Answer Correct Answer: C) Moral courage. 16. If Spain can produce 10 tons of olives or 1 ton of olive oil and Italy can produce 5 tons of olives and 5 tons of olive oil, then A) Spain has the absolute advantage in producing olive oil. B) Spain has the comparative advantage in producing olives. C) Italy has the absolute advantage in producing olives. D) Italy has the comparative advantage in producing olives. E) All of these. Show Answer Correct Answer: B) Spain has the comparative advantage in producing olives. 17. Is the wholesale and retail trades are the types of foreign trade? A) Yes. B) No. Show Answer Correct Answer: B) No. 18. Which model looks at the income distribution between countries that trade? A) Comparative advantage model. B) Factors proportion theory. C) Specific factors model. D) New trade theory. Show Answer Correct Answer: C) Specific factors model. 19. A union which promotes free movement of goods and workers across borders in Euroupean countries. A) ASEAN. B) EU. C) NAFTA. D) APEC. Show Answer Correct Answer: B) EU. 20. The tax that the United States imposes on imported carbon steel products is called a tariff. A) True. B) False. Show Answer Correct Answer: A) True. ← 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