This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 69 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 69 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Trade within the same region or country A) Foreign trade. B) Domestic trade. C) World trade. D) Free trade. Show Answer Correct Answer: B) Domestic trade. 2. Which of the following is an example of an import for USA? A) Japan buys corn from USA. B) Brazil purchases plastic from USA. C) America sells cell phones to India. D) America buys foam fingers from China. Show Answer Correct Answer: D) America buys foam fingers from China. 3. The effect of the Fed buying bonds A) Increases money supply. B) Decreases money supply. Show Answer Correct Answer: A) Increases money supply. 4. Rancher Tom can raise 10 goats and 20 pigs in a year. Rancher Joe can raise 20 goats and 100 pigs in a year. Who has the comparative advantage for raising pigs? A) Rancher Tom. B) Rancher Joe. C) Both ranchers. D) Need more information. Show Answer Correct Answer: B) Rancher Joe. 5. If Country Alpha has been experiencing a higherinflation rate than Country Beta over the pastdecade, which of the following is true? A) Alpha's currency will have appreciatedrelative to Beta's currency. B) Alpha's currency will have depreciatedrelative to Beta's currency. C) Alpha will have had lower nominal interestrates than Beta. D) Alpha will have had slower growth in themoney supply than Beta. E) Alpha's economy will have grown at a fasterrate than Beta's. Show Answer Correct Answer: B) Alpha's currency will have depreciatedrelative to Beta's currency. 6. Interest Rates A) Price of money borrowed from the bank. B) Price of money added to savings. C) Price of borrowed money, expressed as a percentage rate. D) None of above. Show Answer Correct Answer: C) Price of borrowed money, expressed as a percentage rate. 7. Established in January 1995 by the Uruguay round negotiations under GATT, the WTO included 144 nations as of ..... The WTO administers trade agreements, provides a forum for trade negotiations and resolving trade disputes, monitors trade policies, and provides technical assistance and training for developing countries. A) January 1999. B) January 2001. C) January 2002. D) January 2004. Show Answer Correct Answer: C) January 2002. 8. Why are trade policies difficult to reform, as per the text? A) They do not have any impact on the economy. B) They are not influenced by global efficiency. C) They bring dislocation to firms and industries. D) They are easy to implement. Show Answer Correct Answer: C) They bring dislocation to firms and industries. 9. Any product that is sold to the global market. A) Export. B) Import. C) International Trade. D) Global Trade. Show Answer Correct Answer: A) Export. 10. Brunei, Indonesia, Malaysia, Philippines, Singapore and Thailand. Vietnam are part of A) NAFTA. B) ASEAN. C) EU. D) None of above. Show Answer Correct Answer: B) ASEAN. 11. How do American consumers benefit from international trade? A) They have access to goods that are scarce in this country. B) They have a trade surplus that increases savings. C) They have lower opportunity costs. D) They have an absolute advantage in producing some goods. Show Answer Correct Answer: A) They have access to goods that are scarce in this country. 12. What role do government policies play in international trade? A) They have no influence on international trade. B) They can promote or restrict trade through regulations and policies. C) They only impact domestic markets, not international trade. D) They promote global economic inequality. Show Answer Correct Answer: B) They can promote or restrict trade through regulations and policies. 13. A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount A) Bill of Exchange. B) Insurance Certificate. C) Letters of Credit. D) Manifest. Show Answer Correct Answer: C) Letters of Credit. 14. When the U.S. stops importing products from another country after they find that there is a potential problem with the product. A) Trade quota. B) Trade tariff. C) Trade embargo. D) Trade surplus. Show Answer Correct Answer: C) Trade embargo. 15. Govt. policy about exports and imports is called: A) Commercial policy. B) Fiscal policy. C) Monetary policy. D) Finance policy. Show Answer Correct Answer: A) Commercial policy. 16. Name the five sectors of the economy A) Household, Business, Finance, Government, Overseas. B) Household, Business, Banks, Government, Overseas. C) Household, Government, Insurance, Firms, Imports/Exports. D) None of above. Show Answer Correct Answer: A) Household, Business, Finance, Government, Overseas. 17. Which of the following is a regional trading bloc in North America? A) European Union (EU). B) ASEAN. C) NAFTA (now USMCA). D) BRICS. Show Answer Correct Answer: C) NAFTA (now USMCA). 18. The followings are reasons for international trade EXCEPT A) Encourage opportunity in local direct investment. B) Increase productivity. C) Make the market more competitive. D) Increased efficiency. Show Answer Correct Answer: A) Encourage opportunity in local direct investment. 19. In a collection involving payment for an international trading transaction, the principal is the exporter and the drawee is the buyer/importer. A) True. B) False. Show Answer Correct Answer: A) True. 20. Is financially responsible (the buyer) for the receipt of a shipment. Generally, is the same as the receiver. A) Exporter. B) Customs. C) Consignee. D) Customer. Show Answer Correct Answer: C) Consignee. ← 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