This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 7 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 7 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A disadvantage of international trade:Trading internationally usually involves higher transport costs 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. 2. Chairs made in China are flown to The Bahamas A) Import. B) Export. Show Answer Correct Answer: A) Import. 3. What does the slope of a production possibility frontier represent? A) The elasticity of demand for the y-axis good. B) Autarky price of one good in terms of another. C) Terms of trade between two goods. D) Producer su rplus as a function of production. E) The opportunity cost of producing one good in terms of another. Show Answer Correct Answer: E) The opportunity cost of producing one good in terms of another. 4. The main reason liberalism rejects the idea of protectionism is because A) Protectionism encourages inefficiency in the market. B) Protectionism does not really save jobs despite its cost. C) Protectionism promotes retaliation among countries whose products are subject to restrictions. D) Protectionism is too difficult and costly to enforce. Show Answer Correct Answer: A) Protectionism encourages inefficiency in the market. 5. Which of the following is the nature of international trade according to Marxism? A) Cooperation. B) Competition. C) Interdependence. D) Dependence. Show Answer Correct Answer: D) Dependence. 6. Country A can produce more coal than Country B. An economist would say that Country A has ..... over country B. A) An export advantage. B) A comparative advantage. C) An absolute advantage. D) A production possibility advantage. Show Answer Correct Answer: C) An absolute advantage. 7. "Production" is concerned with selecting the merchandise, stocking the store, and ringing up the sale at the cash register. A) MTV. B) Retailer. C) Banks. D) None of above. Show Answer Correct Answer: B) Retailer. 8. Occurs when a country has special natural resources or talents that allow it to produce an item at the lowest cost possible. A) Comparative advantage. B) Cooperative advantage. C) Absolute advantage. D) Trade advantage. Show Answer Correct Answer: C) Absolute advantage. 9. The following centers of economic excellence in Indonesia that produce ores containing copper, gold and silver are..... A) Pangkalan Brandan Refinery. B) PT Freeport Indonesia. C) Balongan Refinery. D) Balikpapan Refinery. Show Answer Correct Answer: B) PT Freeport Indonesia. 10. Refers to the particular countries and kinds of countries toward which a country's exports are sent, and from which its imports are brought. A) Volume of trade. B) Direction of trade. C) Balance of trade. D) Composition of trade. Show Answer Correct Answer: B) Direction of trade. 11. What is a limit on imports? A) Export. B) Quota. C) Embargo. D) Subsidy. Show Answer Correct Answer: B) Quota. 12. Which one does not belong to the group? A) Common law. B) Civil law. C) Theocratic law. D) Criminal law. E) None of the above. Show Answer Correct Answer: D) Criminal law. 13. Complete:You asked for a salary of $ 60, 000, and we said the position paid $ 52, 000. Let's ..... and say $ 56, 000 A) Miss out. B) Split the difference. C) Lemon. D) Haggled. Show Answer Correct Answer: B) Split the difference. 14. The use of trade barriers to protect domestic industries and jobs works only if other countries do not retaliate with their own trade barriers A) True. B) False. Show Answer Correct Answer: A) True. 15. BOP stands for..... A) Bank of Payments. B) Barrier of Payments. C) Bill of Payments. D) Balance of Payments. Show Answer Correct Answer: D) Balance of Payments. 16. Which is the benefit of International trade? A) Restricts the growth of indigenous industries. B) Depletion of natural resources in the home work. C) Import of harmful goods. D) Improving employment potentials. Show Answer Correct Answer: D) Improving employment potentials. 17. Business taking place between ..... is known as international business A) Two cities. B) Two districts. C) Two states. D) Two countries. Show Answer Correct Answer: D) Two countries. 18. Which organization administers the WIPO Madrid System? A) United Nations. B) European Union. C) World Health Organization. D) World Intellectual Property Organization. Show Answer Correct Answer: D) World Intellectual Property Organization. 19. Guidelines that imports must meet to enter a country A) Standards. B) Tariff. C) Quota. D) 'Subsidy. E) Embargo. Show Answer Correct Answer: A) Standards. 20. A nation is better off when it produces goods and services for which it has a comparative advantage A) Law of comparative advantage. B) The trade fails. C) Exports. D) Imports. Show Answer Correct Answer: A) Law of comparative advantage. ← 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 8International Trade Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books