This quiz works best with JavaScript enabled. Home > Finance > Economics > International Economics > International Economics – Quiz 7 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Economics Quiz 7 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Unprocessed goods' share in total world imports in a long-term ..... A) Rises. B) Stays the same. C) Depends on the flow of capital. D) Declines. Show Answer Correct Answer: D) Declines. 2. The goal of the North Atlantic Free Trade Agreement is to ..... trade barriers. A) Increase. B) Decrease. Show Answer Correct Answer: B) Decrease. 3. China's most favored nation trading status will be taken away if congress and the President agree that the Chinese Government is guilty of human rights abuses. All Chinese imports will experience a sharp increase in taxes if China is no longer considered a most favored nation. A) Subsidies. B) Embargo. C) Tarriff. D) Quota. Show Answer Correct Answer: C) Tarriff. 4. A number of scholars define globalization as a multidimensional group of social procedures. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 5. Which of the following is a part of the financial account? A) Inheritance taxes. B) Transactions in patents. C) Reserve assets. D) None of the above. Show Answer Correct Answer: C) Reserve assets. 6. Watches made in Norway are worn by people in California. A) Export. B) Import. Show Answer Correct Answer: B) Import. 7. Which one is wrong? Which one is wrong? A) Edgeworth box diagramEdgeworth box line. B) Priyabis Singar In the Vyapar Sharit, Dirdakalin Hass Prior to the Principal Singer Business Condition has lived in the long run. C) Edgeworth Customs Union Edgeworth Zakat Union. D) Jacob Wiener Customs UnionJacob Wiener Zakat Union. Show Answer Correct Answer: C) Edgeworth Customs Union Edgeworth Zakat Union. 8. The pattern of trade would be: A) U.S. exports wheat while UK exports cloth. B) U.S. exports cloth while UK exports wheat. C) Trade will not occur because U.K is disadvantaged in both goods. D) None of above. Show Answer Correct Answer: A) U.S. exports wheat while UK exports cloth. 9. The gains from international trade are closely related to: A) The labor theory of value. B) How much the autarky price differs from international terms of trade change. C) The fact that a country must lose from trade. D) All of the above. Show Answer Correct Answer: B) How much the autarky price differs from international terms of trade change. 10. Refers to the unrestricted flow of goods, services, and productive resources between countries A) Free trade. B) Trade deficit. C) Trade surplus. D) Balance of trade. Show Answer Correct Answer: A) Free trade. 11. Which of the following is not included in the current account balance? A) Net income. B) Current transfer. C) Financial account. D) Balance of goods and services. Show Answer Correct Answer: A) Net income. 12. An increase in United States imports will result in which of the following in foreign exchange markets? A) Increase foreign demand for United States dollars. B) Decreased supply of United States dollars. C) Increased United States demand for foreign currencies. D) A decrease in the value of foreign currencies. E) An increase in the value of the United States dollar. Show Answer Correct Answer: C) Increased United States demand for foreign currencies. 13. Which of the following would be MOST supportive of British tariffs? A) A US company hoping to export goods to Great Britain. B) A British company hoping to export goods to other countries. C) British consumers. D) British manufacturers who sell their products domestically. Show Answer Correct Answer: D) British manufacturers who sell their products domestically. 14. What countries are a part of the "USMCA" ? (Formly known as NAFTA) A) USA United Kingdom Mexico. B) Europe USA Canada UK. C) USA Canada Mexico. D) North America South America Greenland. Show Answer Correct Answer: C) USA Canada Mexico. 15. Heckscher-Ohlin theory is known as ..... A) Modern theory of international trade. B) Factor endowments theory of international trade. C) Both modern theory of international trade and factor endowments theory of international trade. D) Neither modern theory of international trade nor endowments theory of international trade. Show Answer Correct Answer: C) Both modern theory of international trade and factor endowments theory of international trade. 16. A country currently produces coffee and bread. If new technology was discovered that increased the production of coffee, how would the opportunity cost of bread be affected? A) It would decrease because more coffee could be produced instead. B) It would not be affected. C) It would increase because more coffee could be produced instead. D) None of above. Show Answer Correct Answer: C) It would increase because more coffee could be produced instead. 17. When a currency loses value in comparison to another country A) Appreciate. B) Unfavorable Balance of Trade. C) Protectionism. D) Depreciate. Show Answer Correct Answer: D) Depreciate. 18. International trade forces domestic firms to become more competitive in terms of A) The introduction of new products. B) Product design and quality. C) Product price. D) All of the above. Show Answer Correct Answer: D) All of the above. 19. The rate at which goods are exchanged between one another in the international market is called ..... A) An absolute advantage. B) The exchange rate. C) Term of trade. D) A comparative advantage. Show Answer Correct Answer: C) Term of trade. 20. The ..... Society is the creation of international trade A) Agricultural. B) Modern. C) Modern industrial. D) None of above. Show Answer Correct Answer: C) Modern industrial. 21. International trade is based on the idea that A) Exports should exceed imports. B) Imports should exceed exports. C) Resources are more mobile internationally than are goods. D) Resources are less mobile internationally than are goods . Show Answer Correct Answer: D) Resources are less mobile internationally than are goods . 22. Which economic system does the government make all economic decisions and owns most of the property-it is sometimes called communism? A) Traditional. B) Command. C) Market. D) Mixed. Show Answer Correct Answer: B) Command. 23. ..... is an increase in the value of a currency as measured by the amount of foreign currency it can buy. A) Appreciation. B) Specialization. C) Depreciation. D) Exchange rates. Show Answer Correct Answer: A) Appreciation. 24. What is a decrease in the value of a currency? A) Absolute advantage. B) Depreciation. C) Appreciation. D) Inflation. Show Answer Correct Answer: B) Depreciation. 25. Which of the following theories discusses the demand side? A) Adam Smith's theory of absolute advantage. B) Hexer Ohlin's business philosophy. C) Mill's theory of mutual demand. D) All. Show Answer Correct Answer: C) Mill's theory of mutual demand. 26. Who first investigated the Hexer-Ohlein theory? Who first tested the Hexer-Ohlein theory? A) Balasa (Balasa). B) McDougall (McDougall). C) Samuelson (Samuelson). D) Leontief (Leontief). Show Answer Correct Answer: D) Leontief (Leontief). 27. If the home country government grants a subsidy on a domestically produced good, domestic producers tend to: A) Capture the entire subsidy in the form of higher profits. B) Increase their level of production. C) Consider the subsidy as an increase in production cost. D) Reduce wages paid to domestic workers. Show Answer Correct Answer: B) Increase their level of production. 28. The ability of one person or nation to produce more of a good than another person or nation A) Protectionism. B) Absolute advantage. C) Exports. D) Comparative Advantage. Show Answer Correct Answer: B) Absolute advantage. 29. A rough measure of the economic relationship among nations, or their interdependence, is A) GDP. B) GDP per capita. C) Ratio of imports and exports to GDP. D) Ratio of imports and exports to GDP/capita. Show Answer Correct Answer: C) Ratio of imports and exports to GDP. 30. How many stars in the flags of Venezuela? A) 7. B) 8. C) 6. D) None of above. Show Answer Correct Answer: B) 8. ← 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 8International Economics Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books