This quiz works best with JavaScript enabled. Home > Finance > Economics > International Economics > International Economics – Quiz 11 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Economics Quiz 11 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. People traveling to another country and people who import foreign goods benefit from A) Depreciation. B) Protectionism. C) Trade barriers. D) Appreciation. Show Answer Correct Answer: D) Appreciation. 2. Demand is said to control the ..... of consumer goods. A) Mixed. B) Scarcity. C) Enterprise. D) Supply. Show Answer Correct Answer: D) Supply. 3. A(n) ..... is an example of a quota where foreigners hold quota licenses A) Export quota. B) Tariff quota. C) Auction quota. D) Embargo. Show Answer Correct Answer: A) Export quota. 4. The ability of a country or region to specialize in producing a good that another country can produce for the purposes of trade is best described as ..... A) Factors of Production. B) Comparative Advantage. C) Capital. D) Absolute Advantage. Show Answer Correct Answer: B) Comparative Advantage. 5. In today's world, most countries impose tariffs A) Only on imports. B) Only on exports. C) On both imports and exports. D) On imports, exports and nontraded goods. Show Answer Correct Answer: A) Only on imports. 6. Which of the following is an advantage of division of labour? A) Less job satisfaction. B) Delays in work. C) Increased speed of work. D) None of above. Show Answer Correct Answer: C) Increased speed of work. 7. Which one would not be subject to a sales tax? A) Ice cream from the gas station. B) A shirt from target. C) Meal from a restaurant. D) A doctor visit. Show Answer Correct Answer: D) A doctor visit. 8. Dan can eat either a hot dog or a hamburger. He chooses to eat the hot dog. What is his opportunity cost? A) Hotdog. B) Hamburger. Show Answer Correct Answer: B) Hamburger. 9. ..... exchange rate is not fixed by the monetary authorities. A) Tariffs. B) Quotas. C) Flexible. D) Fixed. Show Answer Correct Answer: C) Flexible. 10. Economies of scale' is also known as ..... A) Benefiting scales. B) Returns of scale. C) EOS. D) None of the above. Show Answer Correct Answer: B) Returns of scale. 11. The figure illustrates the international movement of capital. When there is international movement of AB of capital in both Nations, the rate of return on capital in Nation 2 is changed by ..... A) -TJ. B) -TH. C) + TH. D) + O2T. Show Answer Correct Answer: B) -TH. 12. ..... examines the reasons for and the effects of restrictions on international trade. A) International Trade Policy. B) International Trade Theory. C) International Trade Organization. D) International Monetary Fund. Show Answer Correct Answer: A) International Trade Policy. 13. A situation where a government does not attempt to influence through quotas or duties what its citizens can buy from another country or what they can produce and sell to another country. A) New trade. B) Free trade. C) International trade. D) None of above. Show Answer Correct Answer: B) Free trade. 14. What happens if a country does not follow the law of comparative advantage? A) The country will experience an increase in the costs of producing goods or services. B) The country will experience losses in international trade. C) The country will experience a decrease in the cost of producing goods or services. D) The country will experience benefits in international trade. E) The country will experience an increase in the cost of consuming goods or services. Show Answer Correct Answer: A) The country will experience an increase in the costs of producing goods or services. 15. A record of all transactions between the residents of a country and the residents of all other countries, over a period of time. A) Net Export Account. B) Export ledger. C) Import ledger. D) Balance of payments. Show Answer Correct Answer: D) Balance of payments. 16. A country's exports fall short of the value of its imports A) Absolute Advantage. B) Comparative Advantage. C) Trade Deficit. D) Trade Surplus. Show Answer Correct Answer: C) Trade Deficit. 17. A political and economic organization of 10 countries in Asia is often abbreviated to what term? A) ASEAN. B) TRADERS. C) NAFTA. D) EU. Show Answer Correct Answer: A) ASEAN. 18. Which country has a comparative advantage in wheat? A) U.S. B) U.K. Show Answer Correct Answer: A) U.S. 19. The income terms of trade concept was introduced by G.S.Dorrance A) False. B) True. Show Answer Correct Answer: B) True. 20. The SAPTA was unanimously enforced by all the member countries of the SAARC at the summit held ..... in 1995 A) New Delhi. B) Kathmandu. C) Male. D) Islamabad. Show Answer Correct Answer: A) New Delhi. 21. Who purposed Reciprocal Demand theory of International Trade A) David Ricardo. B) Adam Smith. C) J S Mill. D) J M Keynes. Show Answer Correct Answer: C) J S Mill. 22. What is the primary purpose NAFTA? A) To reduce trade barriers among the US, Canada, and Mexico. B) To reduce trade barriers among Central America and Mexico. C) To reduce trade barriers among Brazil and Mexico. D) To encourage free trade between the US, Europe, and Canada. Show Answer Correct Answer: A) To reduce trade barriers among the US, Canada, and Mexico. 23. Being an expert in one job, product, or service is called ..... A) Economic interdependence. B) Scarcity. C) Economic specialization. D) Opportunity cost. Show Answer Correct Answer: C) Economic specialization. 24. International trade is governed by monetary policy of one country A) True. B) False. Show Answer Correct Answer: B) False. 25. Suppose that there is a balance of trade in both the US and Canada. Then, the US dollar appreciates against the Canadian dollar. What would the likely outcome be? A) A trade deficit in both countries. B) A trade surplus in Canada. C) A trade surplus in the US. D) A trade deficit in Canada. Show Answer Correct Answer: C) A trade surplus in the US. 26. "International trade can be substitute for economic growth" ..... is the statement true? A) Yes. B) No. Show Answer Correct Answer: A) Yes. 27. The ability to produce more of a given product using a given amount of a resource. A) Comparative Advantage. B) Absolute Advantage. C) Positive Advantage. D) Negative Advantage. Show Answer Correct Answer: B) Absolute Advantage. 28. The benefits of international trade are derived from trade in A) Anything of value. B) Intangible goods only. C) Services but not goods. D) Goods but not services. E) Tangible goods only. Show Answer Correct Answer: A) Anything of value. 29. Those who benefit from the protectionism policy through tariff are ..... A) Producers in foreign countries. B) Domestic users. C) Users in a foreign country. D) Domestic producers. Show Answer Correct Answer: D) Domestic producers. 30. Which year was Automercados Plaza's (supermarket) founded? A) 1963. B) 1987. C) 1677. D) None of above. Show Answer Correct Answer: A) 1963. ← 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