This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 70 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 70 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Suppose the United States' grain prices are higher than world prices when it is isolated. Opening to trade would cause A) Lower world grain prices. B) Higher domestic production. C) Decreased social welfare. D) Decreased producer surplus. E) Lower domestic consumption. Show Answer Correct Answer: D) Decreased producer surplus. 2. ..... is a direct restriction on the quantity of some good that may beimported into a country. A) Import tariff. B) Import quota. C) Import subsidy. D) To the value of the tariff. Show Answer Correct Answer: B) Import quota. 3. Who introduced the concept of absolute advantage A) Karl Marx. B) David Ricardo. C) John Keynes. D) Adam Smith. Show Answer Correct Answer: D) Adam Smith. 4. Excessive burocratic procedures, lenghty processes and duplicated import steps, are examples of: A) Red tape. B) Tariff barriers to trade. C) Regulatory barriers to trade. D) Corrupted environment. Show Answer Correct Answer: A) Red tape. 5. Why is international trade not a zero-sum game? A) Because both parties in a trade transaction can benefit. B) Because one party always gains more than the other. C) Because the total value of goods traded remains the same. D) Because trade only benefits the exporting country. Show Answer Correct Answer: A) Because both parties in a trade transaction can benefit. 6. Internal economies of scale are those that A) Result from changes in production techniques. B) Increase due to the growth of the industry as a whole. C) Generate lower per unit production costs. D) Reduce production costs in the short run. Show Answer Correct Answer: C) Generate lower per unit production costs. 7. International trade enables the company to minimize the cost by employing cheaper labor. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 8. Which coordinates on a production possibility frontier graph are efficient? A) All points on the production possibility frontier. B) All points cont ained inside the production possibility frontier. C) All points beyond the production possibility frontier. D) The point on the production possibility frontier where the x-coordinate equals the y-coordinate. E) The two points where the production possibility frontier intersects the x-and y-axes. Show Answer Correct Answer: A) All points on the production possibility frontier. 9. Makes imported goods more expensive A) Quota. B) Tariff. C) Embargo. D) None of above. Show Answer Correct Answer: B) Tariff. 10. The EU has barriers to trade within the EU? A) True. B) False. Show Answer Correct Answer: B) False. 11. Which advancement in technology has significantly accelerated time-space convergence in the field of global travel? A) Social media platforms. B) Aviation, such as the Boeing 747. C) Teleportation devices. D) All responses. E) Fiber optic cables. Show Answer Correct Answer: B) Aviation, such as the Boeing 747. 12. If the Fed has high reserve requirements for banks that will A) Lower the money supply. B) Increase the money supply. Show Answer Correct Answer: A) Lower the money supply. 13. Who typically has control over foreign trade in a country? A) Government. B) Producers. C) Middlemen. D) Buyers. Show Answer Correct Answer: A) Government. 14. Has to do with quantity or amount of a product that is produced A) Inputs. B) Outputs. C) Specialization. D) Cost. Show Answer Correct Answer: B) Outputs. 15. "A Korean expert provides a service within Mexico as an independent business consultant." This is an example of which type of trade activities? A) Mode 1:Cross-border supply. B) Mode 2:Consumption abroad. C) Mode 3:Commercial presence. D) Mode 4:Natural persons presence. Show Answer Correct Answer: D) Mode 4:Natural persons presence. 16. International trade is the purchase, sale, or exchange of goods and services across national borders. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 17. Which of the following is a key source of competitive advantage? A) Production. B) Competition. C) Organization. D) Innovation. Show Answer Correct Answer: D) Innovation. 18. It is conducted between different religion and geographical location of the same country. A) External Trade. B) Geographical Trade. C) Internal Trade. D) Company Trade. Show Answer Correct Answer: C) Internal Trade. 19. When determining the comparative advantage, one must determine A) Specialization. B) Opportunity cost. C) Absolute Advantage. D) None of above. Show Answer Correct Answer: B) Opportunity cost. 20. Having a global vision simply means having a willingness to sell outside one's national borders if, and when, the opportunity arises. A) True. B) False. Show Answer Correct Answer: B) False. ← 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