This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 77 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 77 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the trade-weighted value of the dollar? A) A measure of the international value of the dollar. B) A measure of the value of the dollar compared to other currencies. C) A measure of the value of the dollar in relation to gold. D) A measure of the value of the dollar in relation to the balance of trade. Show Answer Correct Answer: A) A measure of the international value of the dollar. 2. ..... ? ..... Traveling abroad is cheaper. Imports are cheaper.Luxury cars from Europe, such as Audi, Mercedes, BMW, Porsche, and Ferrari will all fall in dollar price. A) Weak dollar. B) Strong dollar. Show Answer Correct Answer: B) Strong dollar. 3. Pay attention to the following characteristics of trade:(1) Buyers and sellers do not meet in person(2) Import duties are imposed(3) Different currencies(4) Buyers and sellers tend to meet(5) Cheaper transportation costsWhich is a characteristic of trade international is..... A) , (2), and (3). B) , (3), and (4). C) , (3), and (5). D) , (4), and (5). Show Answer Correct Answer: A) , (2), and (3). 4. Molly is traveling from France to the US. She knows that 1 US dollar is worth 0.80 Euros. How much is 350 Euros worth in US dollars? A) $ 425. B) $ 437.50. C) $ 280. D) $ 375. Show Answer Correct Answer: B) $ 437.50. 5. A contract is an agreement between two or more people, seller or buyer. Contracts have some clauses. Select the option that contains some of those clauses of the contract. A) Insurance, Description, Quality, Force Majeure. B) Quantity, Arbitration, Payment, Delivery. C) Packing, Price, Warranty or Guarantee, Claim. D) All of the above. Show Answer Correct Answer: D) All of the above. 6. You offer to pay for a meal. What do you say? A) Help yourself. B) Congratulations!!. C) It's on me. D) Cheers!!. Show Answer Correct Answer: C) It's on me. 7. International trade is the exchange of goods and services between countries. This includes both ..... and ..... and via any mode of transportation-air and ocean freight. A) Import, Export. B) A single nation, Multiple nations. C) Tariffs, Quotas. D) Domestic, International Trade. Show Answer Correct Answer: A) Import, Export. 8. Good brought into the country A) Imports. B) Exports. C) Absolute advantage. D) Comparative advantage. Show Answer Correct Answer: A) Imports. 9. The Trade Facilitation Agreement will ..... A) Reduce red tape and compliance costs for exporters (such as customs procedures), potentially boosting global trade by up to $ 1 trillion a year. B) Stimulate innovation, including by enabling the commercialisation of research, supporting start-ups, and helping existing businesses to build capability and skills. C) Help Australians to develop skills to find jobs and opportunity in changing workplaces. D) None of above. Show Answer Correct Answer: A) Reduce red tape and compliance costs for exporters (such as customs procedures), potentially boosting global trade by up to $ 1 trillion a year. 10. Trade between countries without restrictions or trade barriers A) Trade Agreement. B) International Trade. C) Trade Agreement. D) Free Trade. Show Answer Correct Answer: D) Free Trade. 11. The effect of the Fed selling bonds A) Increases money supply. B) Decreases money supply. Show Answer Correct Answer: B) Decreases money supply. 12. Expectation for minimal levels of quality to be met. A) Embargo. B) Tariff. C) Standards. D) Quotas. Show Answer Correct Answer: C) Standards. 13. With a given amount of resources, a country with a comparative advantage will produce a product with ..... A) Decreased demand. B) Lower opportunity costs. C) Cheaper natural resources. D) Higher quality specifications. Show Answer Correct Answer: B) Lower opportunity costs. 14. The establishment of a business in a foreign country. A) Foreign direct investment (FDI). B) Infrastructure. C) International trade. D) Balance of trade. Show Answer Correct Answer: A) Foreign direct investment (FDI). 15. The FOREX is about ..... A) Trading products. B) Trading currency. C) Trading services. D) Trading Good and Services. Show Answer Correct Answer: B) Trading currency. 16. Because Nebraska specializes in the production of corn and Maine specializes in the production of lobsters, the two states could engage in trade that benefits both parties. This law of economics is known as which of the following? A) Parallel consumption. B) Relative distribution. C) Comparative advantage. D) Supply and demand. Show Answer Correct Answer: C) Comparative advantage. 17. This approach is based on the argument that more trade makes us wealthier and is therefore a good thing. It is known as ..... A) Protectionist Rules. B) Free Market. C) Oligopoly. D) Free Trade. Show Answer Correct Answer: D) Free Trade. 18. The exchange of goods and services between countries is know as? A) Domestic trade. B) International trade. C) Export. D) Commerce. Show Answer Correct Answer: B) International trade. 19. What type of trade barrier is a total ban on products A) Quota. B) Tariff. C) Embargo. D) Subsidy. Show Answer Correct Answer: C) Embargo. 20. The two country, multi-good model differs from the two country, two product model in that in the former A) The relative wage ratio will determine the pattern of trade (which good is exported by which country). B) One cannot determine which country will export which product given only labor productivity data. C) Full specialization is less likely to hold in equilibrium. D) All of the above. Show Answer Correct Answer: D) All of the above. ← 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