This quiz works best with JavaScript enabled. Home > Finance > Economics > International Economics > International Economics – Quiz 13 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Economics Quiz 13 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Completely ban trade with a country usually due to political disputes A) Quota. B) Subsidy. C) Embargo. D) None of above. Show Answer Correct Answer: C) Embargo. 2. Absolute advantage is determined by: A) Actual differences in labor productivity between countries. B) Relative differences in labor productivity between countries. C) Both (a) and (b). D) Neither (a) nor (b). Show Answer Correct Answer: A) Actual differences in labor productivity between countries. 3. Which of the following is referring to International Trade? A) Exchange of export and import between the people of two countries. B) Exchange of goods and services between the people of two countries. C) Exchange of export and import within the political boundaries of a country. D) Exchange of goods and services within the political boundaries of a country. Show Answer Correct Answer: B) Exchange of goods and services between the people of two countries. 4. Quotas are not popular with consumers because they limit consumer choice. This makes products more expensive. A) True. B) False. Show Answer Correct Answer: A) True. 5. A current account deficit A) Means uk goods and services are less competitive on international markets. B) Reflects rising demand for Uk made goods and services. C) Can lead to a rise in the value of the £ over time. D) None of above. Show Answer Correct Answer: A) Means uk goods and services are less competitive on international markets. 6. The main benefit of free trade between two countries is that A) Income distribution in each country will become more equitable. B) Employment in each country will increase. C) Migration from one country to the other will increase. D) Each country can consume beyond its constraints of resources and productivity. E) Each country will become more self-sufficient. Show Answer Correct Answer: D) Each country can consume beyond its constraints of resources and productivity. 7. When individuals work for businesses, what resource are they providing? A) Raw materials. B) Capital. C) Labor. D) Loans. Show Answer Correct Answer: C) Labor. 8. WTO has observed governments A) 32. B) 11. C) 25. D) 09. Show Answer Correct Answer: C) 25. 9. Refers to the price of one country's currency express in terms of another country's currency. A) NAFTA. B) Quota. C) Exchange Rates. D) Tariff. Show Answer Correct Answer: C) Exchange Rates. 10. A decrease in the demand for US goods will do what to the value of the US dollar? A) Depreciate the value of our money. B) Appreciate the vale of our money. Show Answer Correct Answer: A) Depreciate the value of our money. 11. Another name for the difference between the value of a country's imports and exports A) Balance of Trade. B) Flexible Rate of Exchange. C) Foreign Exchange Rate. D) Trade Weighted Value of a Dollar. Show Answer Correct Answer: A) Balance of Trade. 12. Who advocated the theory of comparative cost advantage doctrine of international trade? A) Alfred Marshal. B) J.M. Keynes. C) Adam Smith. D) David Ricardo. Show Answer Correct Answer: D) David Ricardo. 13. The price of one nation's currency in terms of another nation's currency A) Conversion percentage. B) Exchange percentage. C) Conversion protocol. D) Exchange rate. Show Answer Correct Answer: D) Exchange rate. 14. The relationship between exchange rate and quantity foreign currency supply is ..... A) Positive. B) Negative. Show Answer Correct Answer: A) Positive. 15. Goods or services produced in the home country and sold in another country. A) Exports. B) Transports. C) Outgoers. D) Imports. Show Answer Correct Answer: A) Exports. 16. What is the last day of school? A) May 23rd. B) May 22nd. C) May 24th. D) May 21st. Show Answer Correct Answer: C) May 24th. 17. From April 2021, which new subsidiary did NPCI create to increase growth especially in the business to consumer segment for small businesses? A) NPCI International Payments Limited (NIPL). B) Bharat Bill Payment System (BBPS). C) NPCI Bharat BillPay Limited (NBBL). D) Indian Bank's Association (IBA). Show Answer Correct Answer: B) Bharat Bill Payment System (BBPS). 18. According to the Heckscher-Ohlin model, the source of comparative advantage is a country's: A) Technology. B) Advertising. C) Factor endowment. D) Both a and c. Show Answer Correct Answer: C) Factor endowment. 19. The most likely reason why some governments impose tariffs on imported goods is: A) To reduce the rate of inflation. B) To increase employment in foreign countries. C) To increase output in their own countries. D) To reduce the Balance of Payments. Show Answer Correct Answer: C) To increase output in their own countries. 20. The figure illustrates the international movement of capital. When there is no international movement of capital in both Nations, the yield for Nation 1's owners of noncapital factors is ..... A) CFG. B) NEF. C) CNEG. D) O1FGA. Show Answer Correct Answer: A) CFG. 21. The main benefits of free trade include A) Increased choice. lower prices and better quality. B) Less imports because they can't penetrate competitive markets. C) The more efficient sharing of the world's resources. D) Greater benefits for developing economies as they can trade more. Show Answer Correct Answer: A) Increased choice. lower prices and better quality. 22. If I am better at all types of production, I have the ..... in all forms of production. A) Absolute advantage. B) Comparative advantage. C) Specialization. D) Developed nation. Show Answer Correct Answer: A) Absolute advantage. 23. In most cases, tariffs and quotas harm consumers by causing A) Higher prices and fewer choices. B) Higher unemployment. C) Surplus and waste. D) Unexpected deflation. Show Answer Correct Answer: A) Higher prices and fewer choices. 24. Export means..... A) Sending a product to another country for sale. B) To get rid of the goods you don't need. C) To get more goods to be able to make more money. D) Bringing a product into a country to be sold. Show Answer Correct Answer: A) Sending a product to another country for sale. 25. Which is the Plurilateral agreement? A) South Asian Free Trade Area (SAFTA). B) Information Technology Agreement. C) United States-Mexico-Canada Agreement (USMCA). D) ASEAN Free Trade Area (AFTA). Show Answer Correct Answer: B) Information Technology Agreement. 26. An exchange rate is the number of units of: A) A nation's money that is equal to one unit of another nation's money. B) A nation's output that is equal to one unit of another nation's output. C) Gold backing a nation's money. D) None of these. Show Answer Correct Answer: A) A nation's money that is equal to one unit of another nation's money. 27. Countries with different comparative advantages and specializations would ..... each country through trade. A) Not Benefit. B) Benefit. Show Answer Correct Answer: B) Benefit. 28. Country "G" can produce 20 hamburgers or 80 hot dogs. Country "H" can produce 14 hamburgers or 28 hot dogs. What is the opportunity cost for Country "G" to produce 1 hot dog? A) 1/4 hamburger. B) 4 hot dogs. C) 4 hamburgers. D) 1/4 hot dogs. Show Answer Correct Answer: A) 1/4 hamburger. 29. The lowering or elimination of protective tariffs and other trade barriers between two or more nations. A) Foreign Exchange Rate. B) Free Trade. C) Embargos. D) Trade Barriers. Show Answer Correct Answer: B) Free Trade. 30. A lower tariff on imported aluminum would most likely benefit: A) Workers in the domestic aluminum industry. B) Foreign producers at the expense of domestic consumers. C) Domestic manufacturers of aluminum. D) Domestic consumers of aluminum. Show Answer Correct Answer: D) Domestic consumers of aluminum. ← 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