This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 93 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 93 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What are economies such as those in the industrialized West that contain both some government control and some private ownership called? A) Centrally planned economy. B) Mixed economies. C) Transitional economies. D) State-owned industries. Show Answer Correct Answer: B) Mixed economies. 2. What are some examples of how the government uses taxes to contribute to society? A) Public hospitals/medicare. B) Maintaining law and order (police, prisons). C) Welfare payments. D) Essential services-education, roads. E) All of the above. Show Answer Correct Answer: E) All of the above. 3. The third assumption of Comparative Advantage Theory: ..... can move freely among industries ..... but is incapable of moving ..... A) Labor-within a nation-between nations. B) Cash-within a nation-between nations. C) Labor-between nations-within a nation. D) Technology-between nations-within a nation. Show Answer Correct Answer: A) Labor-within a nation-between nations. 4. The practice of selling a commodity in two countries at a price that differs for reasons not related to costs is called ..... A) Free trade. B) Trade liberalisation. C) Dumping. D) Slave trade. Show Answer Correct Answer: C) Dumping. 5. When one country can produce a good more efficiently than another country. The ability to produce more of a given product using a given amount of resources A) Globalization. B) Absolute Advantage. C) NAFTA. D) Fair Trade. Show Answer Correct Answer: B) Absolute Advantage. 6. What is the result of nations specializing in the production of goods? A) Decreasing prices. B) Economic efficiency. C) Self-sufficiency. D) Incentive to trade. Show Answer Correct Answer: D) Incentive to trade. 7. Country's ability to produce more of a given product than another country can A) Absolute advantage. B) Comparative advantage. Show Answer Correct Answer: A) Absolute advantage. 8. Which government policy is most likely to improve a country's balance of trade? A) A decrease in direct taxation. B) A decrease in the exchange rate. C) A decrease in the level of tariffs. D) An increase in government expenditure. Show Answer Correct Answer: B) A decrease in the exchange rate. 9. The purpose of the VIES system is to ..... A) Charge the VAT to the seller in any country of the EU. B) Charge the VAT to the buyer in any country of the EU. C) Verify the VAT ID number of a company in the EU. D) Exempt any transaction made in the EU from VAT. Show Answer Correct Answer: C) Verify the VAT ID number of a company in the EU. 10. A large corporation that has operations in several countries. A) International trade. B) Globalization. C) Multinational. D) Mini-national. Show Answer Correct Answer: C) Multinational. 11. An invisible import is ..... A) A service that has been brought in from another country. B) A service that has been sold to another country. C) A physical good that has been brought in from another country. D) A physical good that has been sold to another country. Show Answer Correct Answer: A) A service that has been brought in from another country. 12. Which is not a purpose of tariff measures? A) Increase government revenues. B) Force consumers to pay more for certain imports. C) Are pro-producer and anti-consumer. D) Increase the overall efficiency of the world economy. Show Answer Correct Answer: D) Increase the overall efficiency of the world economy. 13. Letter of credit A) Credit card. B) Card account. C) Credit of letter. D) Letter of credit. Show Answer Correct Answer: D) Letter of credit. 14. What is not included in Multilateral Trade Agreements is..... A) TRIPS. B) Agreement on Trade-Related Investments Measures. C) GATS. D) Agreement on Government Procurement. Show Answer Correct Answer: D) Agreement on Government Procurement. 15. Which of the following includes additional packaging, transportation and insurance costs? A) Joint venture. B) Export / import. C) Wholly owned subsidiary. D) Franchising. Show Answer Correct Answer: B) Export / import. 16. In which of the following, secrets can get divulged. A) Licensing / franchising. B) Import. C) Export. D) Wholly owned subsidiary. Show Answer Correct Answer: A) Licensing / franchising. 17. Which of the following rights is not include in the ILO (International Labor Organization): A) The elimination of all forms of forced or compulsory labour. B) Using employees who have not had any training or national skill certificates for their jobs. C) The effective prohibition of child labour. D) The elimination of discrimination in respect of employment and occupation. Show Answer Correct Answer: B) Using employees who have not had any training or national skill certificates for their jobs. 18. Business Ethics are not divorced from ....., which are the generally accepted principles of right and wrong governing the conduct of individuals. A) Leadership. B) Personal ethics. C) Human rights. D) None of above. Show Answer Correct Answer: B) Personal ethics. 19. What is an advantage if a region specialises in a narrow range of products? A Other regions will become over-dependent on the region. B Scarce resources are used more efficiently. C The level of production in the region will decrease. D The region's system of transport is improved A) A. B) B. C) C. D) D. Show Answer Correct Answer: B) B. 20. The total Value of goods and services traded is considered to be A) Volume of trade. B) Direction of trade. C) Balance of trade. D) Composition of trade. Show Answer Correct Answer: A) Volume of trade. ← 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