This quiz works best with JavaScript enabled. Home > Finance > Economics > International Economics > International Economics – Quiz 5 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Economics Quiz 5 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The law of demand establishes that there is a ..... a ..... relation between ..... b ..... and quantity. A) Positive, b) price. B) Negative, b) price. C) Negative, b)preference. D) Clear b) preference. Show Answer Correct Answer: B) Negative, b) price. 2. External economies of scale will ..... average cost when output is ..... by ..... A) Reduce; reduce; the industry. B) Increase; increased; a firm. C) Reduce; increased; the industry. D) Increase; increased; the industry. E) Reduce; increased; a firm. Show Answer Correct Answer: C) Reduce; increased; the industry. 3. A quota affects trade by ..... A) Imposing a tax on imported goods. B) Limiting the quantity of goods that can be imported. C) Offering a subsidy to producer who exports to foreign countries. D) The voluntary action of foreign manufacturing manufacturers their exports. Show Answer Correct Answer: B) Limiting the quantity of goods that can be imported. 4. What is a trade deficit? A) When the value of exports exceeds the value of imports. B) When the value of imports exceeds the value of exports. C) When the values of imports and exports are equal. D) When the value of imports for one nation is greater than the value of imports for another nation. Show Answer Correct Answer: B) When the value of imports exceeds the value of exports. 5. What are some positives of globalization? A) Cheap sneakers and clothes. B) Cheap electronics. C) Information is easy to access and it travels quickly (internet and social media). D) All of the answers are correct. Show Answer Correct Answer: D) All of the answers are correct. 6. The exchange of goods, services, and/or productive resources among individuals, businesses, and/or governments. A) Trade deficit. B) Trade barriers. C) Trade Surplus. D) Trade. Show Answer Correct Answer: D) Trade. 7. Name of important component of international economics? A) International balance of payment. B) International balance trade. C) Import-export proportion. D) International exchange rate. Show Answer Correct Answer: B) International balance trade. 8. US Exports = $ 12 million and US Imports = $ 20 million. What does the United States have? Hint:(X-M) A) Trade Surplus. B) Trade Deficit. C) Balance of Trade. D) None of above. Show Answer Correct Answer: B) Trade Deficit. 9. 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 hamburger? A) 40 hot dogs. B) 4 hamburgers. C) 4 hot dogs. D) 60 hot dogs. Show Answer Correct Answer: C) 4 hot dogs. 10. An agreement between the United States, Canada, and Mexico designed to remove tariff barriers. A) NATO. B) ASEAN. C) European Union. D) NAFTA. Show Answer Correct Answer: D) NAFTA. 11. France introduced import quotas in A) 1835. B) 1831. C) 1934. D) 1931. Show Answer Correct Answer: D) 1931. 12. If the Malaysia ringgit (RM) is said to be depreciated relative to the U.S dollar, then the dollar ..... A) Will depreciate relative to Malaysian ringgit. B) Either will appreciate or depreciate relative to Malaysian ringgit. C) Will be less expensive to Malaysians. D) Will appreciate relative to Malaysian ringgit. Show Answer Correct Answer: D) Will appreciate relative to Malaysian ringgit. 13. The ..... is the largest container port along the east coast of the United States. A) Port of Tacoma. B) Northeast Inland Port. C) Port of Savannah. D) Port of Long Beach. Show Answer Correct Answer: C) Port of Savannah. 14. A definition of a multinational business is one that: A) Has a foreign sounding name. B) Imports goods from one country and exports them to another one. C) Exports goods to many different countries. D) Has factories or operations in more than one country. Show Answer Correct Answer: D) Has factories or operations in more than one country. 15. A nation's ability to produce goods more efficiently than another entity is referred to as? A) Absolute Advantage. B) Opportunity Cost. C) Specialization. D) Comparative Advantage. Show Answer Correct Answer: A) Absolute Advantage. 16. Goods a country brings into the country, produced by other countries. A) Embargo. B) Quota. C) Import. D) Exports. Show Answer Correct Answer: C) Import. 17. The US imports the most from this country A) China. B) Japan. C) Canada. D) England. Show Answer Correct Answer: A) China. 18. Occurs when a country exports more than it imports (brings money into the economy) A) Favorable balance of trade. B) Floating exchange rate. C) Fixed exchanged. D) Imports. Show Answer Correct Answer: A) Favorable balance of trade. 19. Rent seeking occurs when one group organizes and lobbies the government to protect its interests. A) True. B) False. Show Answer Correct Answer: A) True. 20. An increase in domestic demand for imports leads to which of the following: A) An increase in demand for the domestic currency. B) A decrease in demand for the domestic currency. C) An increase in the supply of the domestic currency. D) A decrease in the supply of the domestic currency. Show Answer Correct Answer: C) An increase in the supply of the domestic currency. 21. In 2007, the U.S. balance of payments was: A) Exactly equal to the balance of trade surplus. B) Balanced by increased trade advantage. C) Running a deficit. D) Running a surplus. Show Answer Correct Answer: C) Running a deficit. 22. The tariff levied in a "large country" (Home), lowers the world price of the imported good. This causes A) Foreign consumers to demand less of the good on which was levied a tariff. B) Domestic demand for imports to decrease. C) Domestic demand for imports to increase. D) Foreign suppliers to produce less of the good on which was levied a tariff. Show Answer Correct Answer: D) Foreign suppliers to produce less of the good on which was levied a tariff. 23. In 2009 the exchange rate of the Singapore dollar changed from 1.49 = 1 US dollar to 1.43 Singapore dollars = 1 US dollar.How would this affect the import prices and export prices for Singapore? A) Increase/increase. B) Increase/decrease. C) Decrease/increase. D) Decrease/decrease. Show Answer Correct Answer: C) Decrease/increase. 24. The Concept of gross barter terms of trade was introduced by ..... A) Joan Robinson. B) F.W.Taussig. Show Answer Correct Answer: B) F.W.Taussig. 25. What is a trade surplus? A) When the value of exports exceeds the value of imports. B) When the value of imports exceeds the value of exports. C) When the values of imports and exports are equal to each other. D) When the value of money greater than the amount of goods and services imported. Show Answer Correct Answer: A) When the value of exports exceeds the value of imports. 26. Limits on the amount of a product that can be imported. A) Embargo. B) Dumping. C) Trade Barrier. D) Quota. Show Answer Correct Answer: D) Quota. 27. What are the main functions of import tariffs in the modern trade relations? A) Retaliatory and protective. B) Fiscal and retaliatory. C) Protective and fiscal. D) All above. Show Answer Correct Answer: C) Protective and fiscal. 28. Free trade agreements among countries in a region A) Trade bloc. B) Quota. C) Embargo. D) Trade block. Show Answer Correct Answer: A) Trade bloc. 29. Andre Prenoor, U.S. entrepreneur, invests $ 50 million to develop a theme park in Malaysia. A) Debit. B) Credit. Show Answer Correct Answer: A) Debit. 30. Assume that the Federal Reserve pursues a contractionary monetary policy. Based on the resulting change in the interest rate, what will happen to the international value of the dollar, United States imports, and United States exports? A) International value of the dollar decrease, United States imports decrease, United States increase. B) International value of the dollar increase, United States imports decrease, United States increase. C) International value of the dollar increases, United States imports increase, United States exports increase. D) International value of the dollar increase, United States imports increase, United States exports decrease. E) International value of the dollar decrease, United States imports increase, United States decrease. Show Answer Correct Answer: D) International value of the dollar increase, United States imports increase, United States exports decrease. ← PreviousNext →Related QuizzesEconomics QuizzesFinance QuizzesInternational Economics Quiz 1International Economics Quiz 2International Economics Quiz 3International Economics Quiz 4International Economics Quiz 6International Economics Quiz 7International Economics Quiz 8International Economics Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books