This quiz works best with JavaScript enabled. Home > Finance > Economics > International Economics > International Economics – Quiz 10 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Economics Quiz 10 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The current transfer includes the following items EXCEPT ..... A) Gift. B) Military aid. C) Financial aid. D) Investment. Show Answer Correct Answer: D) Investment. 2. A fixed exchange rate is also known as ..... A) Petty Exchange rate. B) Pegged exchange rate. Show Answer Correct Answer: B) Pegged exchange rate. 3. If a country has a deficit in its current account, there will be a A) Surplus in the financial account (formerly called capital account). B) Surplus in the trade balance. C) Surplus in the balance of payments. D) Deficit in the financial account(formerly called capital account). E) Deficit in the balance of payments. Show Answer Correct Answer: A) Surplus in the financial account (formerly called capital account). 4. There are 3 element in Balance of Payment as below except A) Overall balance. B) Capital and financial account. C) National income account. D) Current account. Show Answer Correct Answer: C) National income account. 5. Specialization is A) Dependence on others to get products you do not produce and needing to purchase items from them. B) Items purchased from other countries. C) Items sold to other countries. D) Producing specific goods and less goods faster, cheaper and better than others can. Show Answer Correct Answer: D) Producing specific goods and less goods faster, cheaper and better than others can. 6. The difference between a country's total exports and total imports A) Gross Trade Accounting. B) Gross Trade Report. C) Nominal Trade Account. D) Balance of Trade. Show Answer Correct Answer: D) Balance of Trade. 7. ..... trade is referred to as a trade that involves buying and selling of goods between two individuals or businesses located in two different countries or it can be trade between two different countries A) International. B) Internal. C) Inter-regional. D) Domestic. Show Answer Correct Answer: A) International. 8. The Heckscher-Ohlin theory explains comparative advantage as the result of differences in countries A) Economies of large-scale production. B) *b. Relative abundance of various resources. C) Relative costs of labor. D) Research and development expenditures. Show Answer Correct Answer: B) *b. Relative abundance of various resources. 9. Which of the following theories of international trade does not imply "full specialization" ? A) Leontev paradoxes. B) The theory of absolute superiority. C) Heckscher Olin theory. D) The theory of comparative advantage. Show Answer Correct Answer: C) Heckscher Olin theory. 10. A term that means there is not enough of something is ..... A) Scarcity. B) Supply. C) Economics. D) Enterprise. Show Answer Correct Answer: A) Scarcity. 11. Having comparative advantage means that a country can produce ..... A) Goods at a lower opportunity cost. B) More goods than another country. Show Answer Correct Answer: A) Goods at a lower opportunity cost. 12. Intra-industry trade cannot be explained by A) Competitive advantage. B) Slicing up the value chain. C) Imperfect competition model. D) Comparative advantage. Show Answer Correct Answer: A) Competitive advantage. 13. Harley-Davidson USA purchases $ 25 million in production machinery from a Japanese company. A) Capital/Financial account. B) Current account. Show Answer Correct Answer: B) Current account. 14. Which country does not have a floating exchange system A) Australia. B) Germany. C) Canada. D) Venezuela. Show Answer Correct Answer: D) Venezuela. 15. Importance of the study of International economicsSelect the wrong one A) Optimum use of resources. B) Growth and development. C) Greater choice for consumers. D) Currency minting. Show Answer Correct Answer: D) Currency minting. 16. Americans are free to manage their own ..... A) State. B) Property. C) Laws. D) Government. Show Answer Correct Answer: B) Property. 17. In an inflationary environment, then over time A) An ad valorum tariff will tend to raise more revenue than an ad specific tariff. B) A specific tariff will tend to raise more revenue than an ad valorum tariff. C) An escalating tariff will tend to raise more revenue than an optimum tariff. D) An optimum tariff will tend to raise more revenue than an escalating tariff. Show Answer Correct Answer: A) An ad valorum tariff will tend to raise more revenue than an ad specific tariff. 18. The use of trade barriers between nations to protect domestic industries. A) Trade Wars. B) Embargo. C) Proctoratism. D) Protective Tariff. Show Answer Correct Answer: C) Proctoratism. 19. What is the increase in the value of a currency? A) Appreciation. B) Exchange rate. C) Depreciation. D) Recession. Show Answer Correct Answer: A) Appreciation. 20. The largest amount of trade with the United States in recent years has been conducted by A) Mexico. B) Germany. C) Uk. D) Canada. Show Answer Correct Answer: D) Canada. 21. Any good transported from one country to another is called a(n) ..... A) Quota. B) Export. C) Trade. D) Import. Show Answer Correct Answer: B) Export. 22. These companies obtain resources from nature A) Primary sector. B) Secondary sector. C) Terciary sector. D) None of above. Show Answer Correct Answer: A) Primary sector. 23. If a country imposes an import tariff, its welfare can improve if A) The country is a small country rather than a larger country. B) Its terms of trade improve enough. C) The tariff enhances the welfare of its trading partners. D) Its government's tax revenue increases because of the tariff. Show Answer Correct Answer: B) Its terms of trade improve enough. 24. ..... These are goods that brought into one country from another county. A) Import. B) Quota. C) Export. D) Trade. Show Answer Correct Answer: C) Export. 25. Each month, Ima Newhere, who recently arrived in the United States, sends half her paycheck to her sister in Poland. A) Credit. B) Debit. Show Answer Correct Answer: B) Debit. 26. What is the WTO? A) Replaced the GAFT (General Agreement on Free Trade). B) Countries have the ability to trade with other countries as they see fit. C) Current rounds of negotiations are called the "Dota Rounds" '. D) Lowers trade barriers in developed nations to increase imports. Show Answer Correct Answer: D) Lowers trade barriers in developed nations to increase imports. 27. The local currency experience ..... if the government set the exchange rate below the market exchange rate. A) Undervalued. B) Overvalued. Show Answer Correct Answer: B) Overvalued. 28. A country has a comparative advantage in production of goods if the country is ..... endowed with ..... used ..... in the production of those goods. A) Well ; inputs; intensively. B) Well ; outputs; secondarily. C) Not well; outputs; secondarily. D) Not well ; inputs; intensively. Show Answer Correct Answer: A) Well ; inputs; intensively. 29. Government payments transferred exporting companies allowing the companies to compete with other nations at the international market price without having to incur the costs associated with selling at the lower price. A) Tariff. B) Embargo. C) Standard. D) Subsidy. Show Answer Correct Answer: D) Subsidy. 30. The function that identifies the maximum combinations of two products that a nation can produce by fully utilizing all factors of production with the best technology available. A) Production positive frontier (PPF). B) Production possibility finance (PPF). C) Production possibility frontier (PPF). D) None. Show Answer Correct Answer: C) Production possibility frontier (PPF). ← PreviousNext →Related QuizzesEconomics QuizzesFinance QuizzesInternational Economics Quiz 1International Economics Quiz 2International Economics Quiz 3International Economics Quiz 4International Economics Quiz 5International Economics Quiz 6International Economics Quiz 7International Economics Quiz 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books