This quiz works best with JavaScript enabled. Home > Finance > Economics > International Economics > International Economics – Quiz 22 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Economics Quiz 22 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following SAARC member has the highest population? A) Afghanistan. B) Nepal. C) Bangladesh. D) Pakistan. Show Answer Correct Answer: D) Pakistan. 2. Japanese auto firms agree to limits set in Washington D.C., on the # of Japanese cars that may be sold in the U.S. A) Embargo. B) Quota. C) Tarriff. D) Standard. Show Answer Correct Answer: B) Quota. 3. The use of trade barriers to protect a nation's industries from foreign competition A) Protectionism. B) Quotas. C) Balance of trade. D) NAFTA. Show Answer Correct Answer: A) Protectionism. 4. Which of these is *NOT* a factor of production? A) Human Capital. B) Natural Resources. C) Physical Capital. D) Land Ownership. Show Answer Correct Answer: D) Land Ownership. 5. Which of the following will cause an depreciation of the Australian Dollar? A) Decrease in export volume. B) Political instability. C) Low inflation. D) Lower interest rates. Show Answer Correct Answer: C) Low inflation. 6. Government policy can influence rivalry through regulation and antitrust laws. A) True. B) False. Show Answer Correct Answer: A) True. 7. Placing taxes on imported shoes from Vietnam is an example of A) Monetary policy. B) Trade barrier. C) Trade surplus. D) Balanced budget. Show Answer Correct Answer: B) Trade barrier. 8. Absolute advantage is when country A makes ..... than country B. A) Fewer. B) More. C) Equal. D) Less. Show Answer Correct Answer: B) More. 9. Protectionism in: A) Is an economic policy aimed at protecting the foreign economy from national competition. B) Is an economic policy aimed at protecting the national economy from foreign competition. C) Is an economic policy aimed at strengthening foreign competition through the national economy. D) Is an economic policy aimed at protecting the national economy from national competition. Show Answer Correct Answer: B) Is an economic policy aimed at protecting the national economy from foreign competition. 10. The theory which explores the possibility of two nations operating at the same level of efficiency benefitting by trading with each other is- A) Comparative advantage theory. B) Reciprocal demand theory. C) Haberler's opportunity cost theory. D) H-O theory. Show Answer Correct Answer: C) Haberler's opportunity cost theory. 11. Under a system of flexible exchange rate, the adjustment in the balance of payments are smooth, painless and continuous A) False. B) True. Show Answer Correct Answer: B) True. 12. The most vocal political pressure for tariffs is generally made by A) Consumers lobbying for import tariffs. B) Producers lobbying for import tariffs. C) Consumers lobbying for export tariffs. D) Producers lobbying for export tariffs. Show Answer Correct Answer: B) Producers lobbying for import tariffs. 13. Divisions of labour is also called as A) Individual specialization. B) Inter-regional specialization. C) Both. D) None of above. Show Answer Correct Answer: C) Both. 14. The country of Algonia produced and then shipped out $ 5 billion in goods and services to other nations. It brought in $ 4 billion in goods and services? What does this country have? A) A trade deficit. B) A balanced budget. C) A trade surplus. D) A trade balance. Show Answer Correct Answer: C) A trade surplus. 15. What was a result of trade according to Adam Smith? A) 1:1. B) 1:0 or 0:1. C) Undefined. D) 0:0. Show Answer Correct Answer: A) 1:1. 16. A fee charged for goods brought into a country from another country. A) Dumping. B) Tariff. C) Quota. D) Embargo. Show Answer Correct Answer: B) Tariff. 17. 3) The Ricardian model demonstrates that A) Trade between two countries may benefit both if each exports the product in which it has a comparative advantage. B) Trade between two countries always benefits the country with a larger labor force. C) Trade between two countries will benefit both countries. D) Trade between two countries may benefit one but harm the other. Show Answer Correct Answer: A) Trade between two countries may benefit both if each exports the product in which it has a comparative advantage. 18. The figure illustrates the international movement of capital. When there is no international movement of capital in both Nations, the yield for Nation 2's capital owners is the area of ..... A) HJM. B) O2JMA. C) THMR. D) O2HMA. Show Answer Correct Answer: D) O2HMA. 19. A country should specialize in production of the good in which they have an absolute advantage. A) False. B) True. Show Answer Correct Answer: A) False. 20. An exchange rate system where the central bank sets the value of the exchange rate in relation to another currency is referred to as a: A) Fixed exchange rate system. B) Stable exchange rate system. C) Flexible exchange rate system. D) Floating exchange rate system. Show Answer Correct Answer: A) Fixed exchange rate system. 21. If the real interest rates in the United States rise relative to rates in other countries, what will happen to the international value of the United States dollar and United States net exports? A) Value of the dollar depreciate, net exports increase. B) Value of the dollar appreciates, net exports increase. C) Value of the dollar depreciates, net exports decrease. D) Value of the dollar appreciates, net exports decrease. E) Value of the dollar depreciates, net exports do not change. Show Answer Correct Answer: D) Value of the dollar appreciates, net exports decrease. 22. If the value of a country's currency increases, which of the following is expected: A) Inflation. B) Deflation. Show Answer Correct Answer: B) Deflation. 23. The price of one nation's currency in terms of another nation's currency is called A) Currency converter. B) Foreign exchange. C) Foreign exchange rate. D) Exchange rate. Show Answer Correct Answer: C) Foreign exchange rate. 24. How many members are in the ASEAN? A) 10. B) 53. C) 18. D) 67. Show Answer Correct Answer: A) 10. 25. Higher interest rates A) Make foreigners decide to buy more of a country's government bonds. B) Attracts portfolio flows to a country. C) Controls inflationary pressures. D) All the above. Show Answer Correct Answer: D) All the above. 26. A tariff that prohibits imports has only A) A revenue effect and redistribution effect. B) Revenue effect and protection effect. C) Consumption effect and protection effect. D) Redistribution effect and consumption effect. Show Answer Correct Answer: C) Consumption effect and protection effect. 27. What is a quota? A) A government order to stop trade. B) A limit placed on imports. C) A tax placed on imports. D) None of above. Show Answer Correct Answer: B) A limit placed on imports. 28. Free traders maintain that an open economy is advantageous in that it provides all of the following except A) Increased competition for world producers. B) A wider selection of products for consumers. C) The utilization of the most efficient production methods. D) Relatively high wages levels for all domestic workers. Show Answer Correct Answer: D) Relatively high wages levels for all domestic workers. 29. To whom you atribute the modern theory of international trade? A) Ohlin. B) Viner. C) Ellsworth. D) None of above. Show Answer Correct Answer: A) Ohlin. 30. An import quota is meant to (blank) the number of a particular good brought into the country. A) Increase. B) Affect. C) Restrict. D) Benefit. Show Answer Correct Answer: C) Restrict. ← 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