This quiz works best with JavaScript enabled. Home > Finance > Economics > International Economics > International Economics – Quiz 34 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Economics Quiz 34 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. In order to protect domestic producers, countries may ..... trade barriers. A) Increase. B) Decrease. Show Answer Correct Answer: A) Increase. 2. Which one does not restrict international trade? A) Embargoes. B) Trade Deficits. C) Quota. D) Subsidies. Show Answer Correct Answer: B) Trade Deficits. 3. What is a tariff? 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: C) A tax placed on imports. 4. This is an economic and political union between 27 European countries? A) Port of Savannah. B) European Union (EU). C) Association of Southeast Asian Nations (ASEAN). D) USMCA. Show Answer Correct Answer: B) European Union (EU). 5. Today, roughly ..... million people live in the countries other than the one in which they were born: A) 50. B) 190. C) 500. D) 100. Show Answer Correct Answer: B) 190. 6. Which of these does *NOT* impact the international trade for every nation A) Exports on Price and Quantity. B) Imports on Price and Quantity. C) Trade Affecting Employment. D) Trade Affecting International Affairs. Show Answer Correct Answer: D) Trade Affecting International Affairs. 7. A restriction on the quantity of a good that can be imported into a country is a(n): A) Tariff. B) Embargo. C) Restricted exchange rate. D) Quota. Show Answer Correct Answer: D) Quota. 8. A Chinese company sells $ 1 million worth of socks to the U.S. army. A) Debit. B) Credit. Show Answer Correct Answer: A) Debit. 9. Top 5 countries to which Australia sends it's exports: A) China, Japan, Republic of Korea, USA, India. B) China, Japan, New Zealand, USA, India. C) China, Japan, Republic of Korea, Singapore, India. D) China, Japan, USA, Republic of Korea, India. Show Answer Correct Answer: A) China, Japan, Republic of Korea, USA, India. 10. What is not a part of the Current Account Balance A) Buying firms. B) Net Income Flows. C) Net Transfers. D) Balance of trade in goods and services. Show Answer Correct Answer: A) Buying firms. 11. In the Customs Union A) All foreign tariffs are replaced by a single domestic tariff. B) All internal and external tariffs are replaced by a single tariff. C) All external tariffs are replaced by a single external tariff. D) All internal tariffs are replaced by a single external tariff. Show Answer Correct Answer: D) All internal tariffs are replaced by a single external tariff. 12. A ..... is a type of protectionist trade restriction that sets a physical limit on the quantity of a good that can be imported into a country in a given period of time. A) Trade Barrier. B) Trade. C) Quota. D) Tariff. Show Answer Correct Answer: C) Quota. 13. One possible disadvantage to businesses of globalisation is that: A) All products will become more expensive. B) There will be more international competition. C) There will be less choice and variety for their consumers. D) They will tend to produce on a small scale and this will raise costs. Show Answer Correct Answer: B) There will be more international competition. 14. Currency swap is a method of ..... A) Hedging against foreign exchange risk. B) Import. C) Speculating in foreign exchange. D) Export. Show Answer Correct Answer: A) Hedging against foreign exchange risk. 15. When was World Bank established? A) Mar 1947. B) Jan 1947. C) Apr 1945. D) Dec 1945. Show Answer Correct Answer: D) Dec 1945. 16. Globalisation is best defined as A) Increased international trade as a result of free movement of goods and capital between countries. B) A situation where all of the world uses the same common currency. C) The growing trend for companies to stop making products within their own country. D) The increase in the world tourist industry leading to more global travel. Show Answer Correct Answer: A) Increased international trade as a result of free movement of goods and capital between countries. 17. If the value of a currency in a fixed exchange rate system is raised, it is called: A) Depreciation. B) Revaluation. C) Appreciation. D) Devaluation. Show Answer Correct Answer: B) Revaluation. 18. If a foreign mining company establishes a coal mine in Queensland, the likely impact on the Circular Flow of Income Model for Australia would be: A) An increase in Australia's unemployment rate and an increase in business investment. B) A decrease in Australia's unemployment rate and an increase in business investment. C) An increase Australia's unemployment rate and a decrease in business investment. D) A decrease in Australia's unemployment rate and a decrease in business investment. Show Answer Correct Answer: B) A decrease in Australia's unemployment rate and an increase in business investment. 19. Goods often come from abroad or contain imported parts. A) True. B) False. Show Answer Correct Answer: A) True. 20. Gains from trade can be decomposed into: A) Gains from stability and exchange. B) Gains from terms of trade and inflation. C) Gains from exchange and gains from specialisation. D) None of these. Show Answer Correct Answer: C) Gains from exchange and gains from specialisation. 21. Which of the following will shift the aggregate demand curve to the right? A) Increased imports caused by appreciation of the dollar. B) An increase in interest rates caused by a tightening of monetary policy. C) An increase in the government's budget surplus. D) Increased spending by businesses on computers. E) A report that corporate earnings were lower than expected. Show Answer Correct Answer: D) Increased spending by businesses on computers. 22. Which is NOT a cost of Trade Barriers A) Lower demand for goods. B) Increased prices on imports. C) Fewer product choices & less competition. D) Increased demand for domestic goods. Show Answer Correct Answer: D) Increased demand for domestic goods. 23. If the U.S. government disagrees with a foreign country's politics and wants to prevent trading with that country, the most effective action the U.S. government can take is to A) Place high tariffs on all goods from that country. B) Place an embargo on all goods from that country. C) Enforce safety standards on all goods from that country. D) Enforce a quota on all goods shipped from that country. Show Answer Correct Answer: B) Place an embargo on all goods from that country. 24. One argument against NAFTA A) Increase competition. B) Economic growth. C) Lower prices of goods. D) Outsources jobs to outside countries. Show Answer Correct Answer: D) Outsources jobs to outside countries. 25. These companies these companies provide services A) Primary sector. B) Secondary sector. C) Tertiary sector. D) None of above. Show Answer Correct Answer: C) Tertiary sector. 26. What is the purpose of the world Trade Organisation? A) To restrict and limit international trade. B) To regulate and control global trade. C) To promote and facilitate international trade. D) To encourage and support domestic trade. Show Answer Correct Answer: C) To promote and facilitate international trade. 27. To avoid a quota or a tariff, a country may choose to limit an export. A) Voluntary Export Restraint. B) Protective Tariff. C) Quota. D) Import. Show Answer Correct Answer: A) Voluntary Export Restraint. 28. According to factor proportions theory, factors that were in great supply relative to demand would be cheaper. A) YES. B) NO. Show Answer Correct Answer: A) YES. 29. The value of the U.S. Dollar appreciates versus the Mexican Peso. Who is hurt? A) No one benefits. B) An American producer who exports to Mexico. C) A Mexican firm who imports products from the U.S. D) An American tourist traveling in Mexico. Show Answer Correct Answer: D) An American tourist traveling in Mexico. 30. In 2014, India was in the top of the countries with the ..... percentage of account holders. A) Highest. B) Modest. C) Largest. D) Lowest. Show Answer Correct Answer: D) Lowest. ← 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