This quiz works best with JavaScript enabled. Home > Finance > Economics > International Economics > International Economics – Quiz 24 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Economics Quiz 24 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Tires made in Tennessee factories are used on cars in Europe. A) Import. B) Export. Show Answer Correct Answer: B) Export. 2. . A ..... is when the value of products is greater than exported (exports are less than imports. A) Tariff. B) Trade Deficit. C) Embargo. D) Trade Surplus. Show Answer Correct Answer: B) Trade Deficit. 3. A country that operates in self-reliance and self-sufficiency and does not trade at all with global partners. A) A developing country. B) Colony. C) Autarky. D) None of above. Show Answer Correct Answer: C) Autarky. 4. Which of the following protectionist measures puts in the greatest burden on domestic taxpayers? A) Tariff. B) Subsidies. C) Quotas. D) None of above. Show Answer Correct Answer: B) Subsidies. 5. Which of the following statement is NOT correct regarding the membership of the IMF? A) All member countries of the IMF are not sovereign states. B) Nauru is the latest member of the IMF. C) All "member countries" of the IMF are members of the United Nations. D) Currently its membership is 189. Show Answer Correct Answer: C) All "member countries" of the IMF are members of the United Nations. 6. Those who benefited from the policy of protectionism through the tariff are..... A) Foreign consumers. B) User in a foreign country. C) Local producers. D) Local consumers. Show Answer Correct Answer: C) Local producers. 7. A stronger British pound is beneficial for: A) U.S. exchange students studying in Britain with a U.S. scholarship. B) British firms selling goods and services in Canada. C) British investors who have invested money in Australia. D) Exchange students with a British scholarship studying in Canada. Show Answer Correct Answer: D) Exchange students with a British scholarship studying in Canada. 8. A lower tariff on imported steel would most likely benefit A) Workers in the steel industry. B) Domestic consumers of steel. C) Domestic manufacturers of steel. D) Foreign producers at the expense of domestic consumers. Show Answer Correct Answer: B) Domestic consumers of steel. 9. What is meant by absolute advantage in international trade according to Adam Smith? A) The ability of a country to produce all types of goods or services at the same opportunity cost as other countries. B) The ability of a country to produce all types of goods or services at a lower opportunity cost than other countries. C) The ability of a country to produce certain goods or services at the same opportunity cost as other countries. D) The ability of a country to produce a particular good or service at a lower opportunity cost than other countries. E) The ability of a country to produce certain goods or services at a higher opportunity cost than other countries. Show Answer Correct Answer: D) The ability of a country to produce a particular good or service at a lower opportunity cost than other countries. 10. The concept of free trade can be defined as A) The reduction of tariffs and subsidies in countries so they are no longer as large as they were in the past. B) The removal of all trade barriers both direct and indirect to facilitate more efficient use of scarce resources. C) The free movement of all goods, service, ideas, people, money and technology across the globe. D) Trade which is based on the cheapest prices due to the benefits of perfect competition and economies of scale. Show Answer Correct Answer: B) The removal of all trade barriers both direct and indirect to facilitate more efficient use of scarce resources. 11. Mercantilists believed that a country could increase the amount of wealth it had by ..... A) Promoting exports and discouraging imports. B) Discouraging exports and promoting imports. C) Controlling imports and exports. D) Increasing both imports and exports. Show Answer Correct Answer: A) Promoting exports and discouraging imports. 12. What were the mercantilists' views on international trade? A) They consider international trade to have no influence on a country's wealth. B) They support international trade as a means of increasing a country's wealth. C) They consider international trade to only be beneficial for developed countries. D) They oppose international trade because it can reduce a country's wealth. E) They consider international trade only beneficial for developing countries. Show Answer Correct Answer: B) They support international trade as a means of increasing a country's wealth. 13. Decrease in value of one currency relative to the other A) Depreciation. B) Appreciation. C) Quota. D) None of above. Show Answer Correct Answer: A) Depreciation. 14. The practice of goods being traded between countries without any tariffs that might slow down trade is known as ..... A) Embargos. B) Restriction. C) Barriers. D) Free Trade. Show Answer Correct Answer: D) Free Trade. 15. Exports for China would increase if ..... A) The yen appreciated. B) The yen was weak. C) The US dollar was weak. D) The yen was strong. Show Answer Correct Answer: B) The yen was weak. 16. The Heckscher-Ohlin theorem states that a country will have comparative advantage in the good whose production is relatively intensive in the ..... with which the country is relatively abundant. A) Opportunity cost. B) Tastes. C) Factor/resource. D) Technology. Show Answer Correct Answer: C) Factor/resource. 17. What is the term for the cost of the next best alternative use of money, time, or resources when one choice is made rather than another? A) Opportunity cost. B) Comparative advantage. C) Trade balance. D) Absolute advantage. Show Answer Correct Answer: A) Opportunity cost. 18. A ..... is a rule or other order prescribed by authority, to keep order within conduct A) Regulation. B) Opportunity cost. C) Economy. D) Division of labor. Show Answer Correct Answer: A) Regulation. 19. Goods sent for sale to another country A) Import. B) Export. C) Transit. D) None of above. Show Answer Correct Answer: B) Export. 20. Comparative advantage looks at relative efficiency, taking into account the production with the lowest opportunity costs. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 21. International trade MOST OFTEN takes place because of differences in A) Comparative advantage. B) Exchange rates. C) Absolute advantage. D) Trade barriers. Show Answer Correct Answer: A) Comparative advantage. 22. International trade tends to cause welfare losses to at least some groups in a country A) The less mobile country's resources. B) The more mobile country's resources. C) The lower the country's initial living standard. D) The higher the country's initial living standard. Show Answer Correct Answer: A) The less mobile country's resources. 23. ..... is the highest hierarchical level in the organisational A) General council. B) Ministerial conference. C) Director General. D) Secretariat at WTO. Show Answer Correct Answer: B) Ministerial conference. 24. Which definition BEST describes the term balance of trade? A) The difference between a country's exchange rate and the value of a country's imports. B) The value of a country's goods and services that are exported divided by its per capita income. C) The difference between the yearly value of a country's exports and the yearly value of goods it produces. D) The value of a country's exported goods and services minus the value of goods and services a country imports. Show Answer Correct Answer: D) The value of a country's exported goods and services minus the value of goods and services a country imports. 25. What happen to the price of goods and quantity when tax was imposed in international trade? A) Price = increase, Quantity = increase. B) Price = increase, Quantity = decrease. C) Price = decrease, Quantity = decrease. D) Price = decrease, Quantity = increase. Show Answer Correct Answer: B) Price = increase, Quantity = decrease. 26. The strengthening of regional blocks like EU, ASEAN, and UN is gaining a stable ground. A) FALSE. B) TRUE. Show Answer Correct Answer: B) TRUE. 27. When a country has the lowest opportunity cost for producing the good or service A) Absolute Advantage. B) Trade Surplus. C) Trade Deficit. D) Comparative Advantage. Show Answer Correct Answer: D) Comparative Advantage. 28. ..... is the ability to produce goods at a lower price than another manufacturer. A) Comparative advantage. B) Absolute superiority. Show Answer Correct Answer: A) Comparative advantage. 29. What is the full form of ASEAN? A) Association of South East Asian Nations. B) Administration of Southern East Asian Nations. C) Organisation of South East Asian Nations. D) None. Show Answer Correct Answer: A) Association of South East Asian Nations. 30. The price of one currency in the currencies of other nations. A) Trade Wars. B) Protective Market. C) Foreign Exchange Market. D) Foreign Exchange Rate. Show Answer Correct Answer: D) Foreign Exchange Rate. ← 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