This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 51 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 51 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. South Africa can produce 1 barrel of oil using 3 units of land and can produce 1 karat of diamonds using 1 unit of land. On the other hand, Saudi Arabia can produce 1 barrel of oil using 1/2 unit of land and can produce 1 karat of Diamond using 6 units of land. Which country has comparative advantage in diamond production? A) Saudi Arabia. B) South Africa. C) Both Countries. D) None. Show Answer Correct Answer: B) South Africa. 2. What is one of the main goals of the transportation and logistics industry related to international trade? A) Reduce waste. B) Increase stock value. C) Develop new products. D) Improve customer satisfaction. Show Answer Correct Answer: A) Reduce waste. 3. He food aid was distributed, , , , , , , , , , per family, with larger families receiving more A) Reward. B) Haggle. C) Distill. D) Proportionately. Show Answer Correct Answer: D) Proportionately. 4. An advantage of international trade:Additional markets (i.e. markets abroad) allow firms to exploit more economies of scale-if the additional markets mean there's an increase in demand for their products. A) Yes, I understand this from the notes. B) No, I don't understand this from the notes. C) No, I don't understand this, as I have not read the notes. D) None of above. Show Answer Correct Answer: A) Yes, I understand this from the notes. 5. A limit on the amount of a good that can be imported A) Protectionism. B) Quota. C) Voluntary restriction. D) Tariff. Show Answer Correct Answer: B) Quota. 6. A favorable balance of trade that occurs when a country's exports are greater than its imports A) The trade fails. B) Trade surplus. Show Answer Correct Answer: B) Trade surplus. 7. Following the imposition of a $ 4 per-unit tax in a competitive market, the seller's after-tax price falls from the original equilibrium price of $ 12 to $ 11. Which of the following statements relating to the imposition of the tax is true? A) The seller bears 75 percent of the tax burden. B) The new after-tax equilibrium price is $ 16. C) There is no deadweight loss from this tax. D) The new after-tax equilibrium price is $ 15. E) The buyer bears 25 percent of the tax burden. . Show Answer Correct Answer: D) The new after-tax equilibrium price is $ 15. 8. It's an example of a tariff measure according to the weight or volume, for example, USD$ 0.338 per kilo. A) Non tariff regulation. B) Ad valorem tax. C) Specific Tax. D) Safeguard measure. Show Answer Correct Answer: C) Specific Tax. 9. Country Z has a downward sloping domestic demand curve and an upward sloping domestic supply curve for widgets. In the absence of trade, the domestic price of widgets is P0. Now the country engages in trade, and the price for widgets is Pw. This is below the domestic price of P0. Which of the following will occur? A) Country Z will begin exporting widgets. B) Consumer surplus will decrease in Country Z. C) Domestic producer surplus will decrease in country Z. D) Domestic production of widgets in Country Z will increase. E) The price of widgets received by domestic producers will increase. Show Answer Correct Answer: C) Domestic producer surplus will decrease in country Z. 10. TWO (2) advantages of sale on open-Account basis to an exporter. A) Easy to sell, since buyers pay only upon receiving the goods. B) Easy debt term means able to compete and beat competitors who use "Payment in debt' term. C) Able to negotiate for a better term, since buyers know that sellers assume the risks (default, delay in payment, non-acceptance, etc.). D) 1 & 3. E) 1 & 2. Show Answer Correct Answer: D) 1 & 3. 11. (a) determine the value of one currency in terms of another, influencing international trade. A) Globalization. B) Comparative advantage. C) Tariffs. D) A Exchange rates. Show Answer Correct Answer: D) A Exchange rates. 12. The stages in the panel process for dispute resolution include, among others....., except: A) First written submission. B) Second written submission. C) Third written submission. D) Interim review. Show Answer Correct Answer: C) Third written submission. 13. What is International Trade? A) It is the flow of money from one country to another. B) It is the exchange of goods and services from one country to another. C) It is the exchange of goods and services from one company to another. D) None of the above. Show Answer Correct Answer: B) It is the exchange of goods and services from one country to another. 14. When a country exports a lot more goods and services than they import, it causes job losses, a lower standard of living, and is bad for their economy A) True. B) False. Show Answer Correct Answer: B) False. 15. What doesn't a Packing list include? A) Invoice number. B) Quantity and description of goods. C) Price of goods. D) Number of packages. Show Answer Correct Answer: C) Price of goods. 16. Which two trades are intermediate between the producers and final comsumers? A) Import and export trade. B) Wholesale and retail trade. Show Answer Correct Answer: B) Wholesale and retail trade. 17. Suppose, the nominal interest rate rises by 5%, the domestic inflation is 2% and the foreign inflation is 4%. How much will the real exchange rate change? $%\Delta\epsilon\ =%\Delta e\-\ \pi_{f\ }+\pi_d$ A) 2%. B) 3%. C) 4%. D) 5%. Show Answer Correct Answer: B) 3%. 18. Which international organization aims to promote economic cooperation and integration among European countries? A) United Nations (UN). B) European Union (EU). C) BRICS. D) ASEAN. Show Answer Correct Answer: B) European Union (EU). 19. After rationalisation the company was ..... and its order book was full. A) In good time. B) In good shape. C) In good spirits. D) In good healt. Show Answer Correct Answer: B) In good shape. 20. Which of the following involves the transportation and delivery of goods? A) Financial consulting. B) Autobody repair. C) Warehousing. D) Construction contracting. Show Answer Correct Answer: C) Warehousing. ← 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