This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 71 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 71 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following would be true if the U.S. Dollar depreciates against the Euro? A) It will make European goods cheaper for Americans. B) It will make European goods more expensive for Americans. C) It will make American goods more expensive for Europeans. D) It will have no effect on the prices of either U.S. or European goods. Show Answer Correct Answer: B) It will make European goods more expensive for Americans. 2. A nation has this type advantage when it can produce a good at a lower opportunity cost than another person or nation. A) Absolute Advantage. B) Comparative Advantage. C) Complete Advantage. D) Controlling Advantage. Show Answer Correct Answer: B) Comparative Advantage. 3. A good or service produced in the home country and sold in another country. A) Import. B) Export. Show Answer Correct Answer: A) Import. 4. The negative impact of international trade can be A) The displacement of workers. B) Environmental damage. C) Trade imbalances. D) All of the above. Show Answer Correct Answer: D) All of the above. 5. Visible trade examines the difference between a country's A) Imports and exports of services only. B) Imports and exports of goods only. C) Current account and capital account. D) Output method and expediture method. Show Answer Correct Answer: B) Imports and exports of goods only. 6. This is a tax imposed on a good/service A) Praise. B) Quota. C) Free Trade. D) Embargo. Show Answer Correct Answer: A) Praise. 7. The country of Rockonya makes 1 television every 5 hours and 1 car every 20 hours, while the country of Jamonia makes 1 television every 24 hours and 1 car every 12 hours. Rockonya has a Comparative Advantage in making televisions. A) True. B) False. Show Answer Correct Answer: A) True. 8. Government sector is made up of all bodies in national, state and local governments A) True. B) False. Show Answer Correct Answer: A) True. 9. A Vietnamese travels to Thailand. Which mode of trade in services is this transaction? A) Mode 1. B) Mode 2. C) Mode 3. D) Mode 4. Show Answer Correct Answer: B) Mode 2. 10. International trade is emphasizing on competitive adventages. what is it? A) By promoting specialities. B) By Producing all products to win the market. Show Answer Correct Answer: A) By promoting specialities. 11. The policy of eliminating barriers to international trade; free trade allows goods and services to move more freely across borders. A) Free Trade. B) Protectionism. C) Trade Embargo. D) None of above. Show Answer Correct Answer: A) Free Trade. 12. A country finds that its trade deficit gets bigger following a depreciation. This suggests: A) Its imports and exports are relatively inelastic. B) It some depreciate its currency more. C) There is a J Curve effect. D) There is no J curve effect. Show Answer Correct Answer: A) Its imports and exports are relatively inelastic. 13. The belief in using trade barriers to discourage the importation of foreign goods. A) Tariff. B) Protectionism. C) Import Quota. D) Export. Show Answer Correct Answer: B) Protectionism. 14. Gross domestic product; total amount of goods/services produced in a countryeach year A) GDP. B) Spot Rate. C) Inflation Rate. D) Interest Rate. Show Answer Correct Answer: A) GDP. 15. The following is a description of the embargo except..... A) Example:Malaysia prohibits the entry of goods from the country of Israel. B) Aims to protect the same industry in the local market from being monopolized by foreign companies. C) All import and export activities on a country are stopped. D) Trade restrictions imposed by one ngr on another ngr against all types of product categories. Show Answer Correct Answer: B) Aims to protect the same industry in the local market from being monopolized by foreign companies. 16. What are trade barriers and how do they affect international trade? A) Trade barriers are government subsidies to promote international trade. B) Trade barriers have no impact on international trade. C) Trade barriers are restrictions on domestic trade within a country. D) Trade barriers are government-imposed restrictions on the flow of international goods and services. They can include tariffs, quotas, and regulations, which can increase the cost of imports and limit market access for exporters. Show Answer Correct Answer: D) Trade barriers are government-imposed restrictions on the flow of international goods and services. They can include tariffs, quotas, and regulations, which can increase the cost of imports and limit market access for exporters. 17. Which of the following international trade theories is not a country-based theory? A) Comparative advantage. B) National competitive advantage. C) Absolute advantage. D) Factor proportions. Show Answer Correct Answer: B) National competitive advantage. 18. A person or institution that carries out economic activities is called ..... A) Economic motive. B) Economic principles. C) Economic actors. D) Economic action. Show Answer Correct Answer: C) Economic actors. 19. When a countries imports exceeds its exports A) Trade Failure. B) Quota. C) Globalization. D) Imports. Show Answer Correct Answer: A) Trade Failure. 20. A country is able to produce at a lower opportunity cost A) Surplus. B) Absolute Advantage. C) Defecit. D) Comparative Advantage. Show Answer Correct Answer: D) 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 7International Trade Quiz 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books