This quiz works best with JavaScript enabled. Home > Finance > Economics > International Economics > International Trade > International Trade – Quiz 48 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 48 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The ability to produce a good or service at a lower opportunity cost than some other producers. A) Interdependence. B) Absolute advantage. C) Specialization. D) Comparative advantage. Show Answer Correct Answer: D) Comparative advantage. 2. Modeling imperfect competition means that we will explicitly consider the behavior of individual firms. This will allow us to introduce two additional characteristics of firms that are prevalent in the real world A) False. B) True. Show Answer Correct Answer: B) True. 3. Which country had experienced the fastest revival in exports? A) Brazil. B) China. C) Russia. D) USA. Show Answer Correct Answer: B) China. 4. Using similar resources, Japan can produce 25 cars or 100 computers. The United States can produce 40 cars or 90 computers. A) Japan has absolute advantage in the production of cars. B) Japan has absolute advantage in the production of computers. C) Japan has absolute advantage in the production of both goods. D) Japan has no absolute advantage in this scenario. Show Answer Correct Answer: B) Japan has absolute advantage in the production of computers. 5. The South American group that promotes the movement of goods, people, and currencies among member nations is called A) Is calledASEAN. B) MERCOSUR. C) NAFTA. D) WTO. Show Answer Correct Answer: B) MERCOSUR. 6. When people trade how do both sides benefit? A) Countries can focus on producing specific goods from their natural resources instead of trying to create everything they need. B) Countries can take advantage of each other making the international market more secure. C) Countries are able to learn the weaknesses of other countries and exploit those for natural resources. D) Countries are able to enter other countries with spies and foreign agents to undermine governments. Show Answer Correct Answer: A) Countries can focus on producing specific goods from their natural resources instead of trying to create everything they need. 7. In what year was the World Trade Organization (WTO) inaugurated? A) 1983. B) 1987. C) 1948. D) 1995. Show Answer Correct Answer: D) 1995. 8. Exporting from the firm's home base may not be appropriate if lower-cost locations for manufacturing the product can be found abroad. A) False. B) True. Show Answer Correct Answer: B) True. 9. The United Nation prohibited its member to trade with North Korea following the North Korea's first nuclear test. What type of trade barrier is it? A) Tariff. B) Embargo. C) Standard. D) Subsidy. Show Answer Correct Answer: B) Embargo. 10. Is a concept in microeconomics that describes a market structure controlled entirely by market forces. A) Oligopoly. B) Monopolies. C) Imperfect competition. D) Perfect competition. Show Answer Correct Answer: D) Perfect competition. 11. What is not a reason for the USA to trade? A) Create jobs. B) Comparative advantage. C) Scarcity. D) Lay-offs. Show Answer Correct Answer: D) Lay-offs. 12. The nature of goods and serives traded is called A) Volume of trade. B) Direction of trade. C) Composition of trade. D) Balance of trade. Show Answer Correct Answer: C) Composition of trade. 13. A certificate of ..... shows that the goods meet the required standards prior to shipment. A) Manufacture. B) Inspection. Show Answer Correct Answer: B) Inspection. 14. Pakistan and Tajikistan drew up a PTA in 2012 A) 2002. B) 2006. C) 2012. D) None of above. Show Answer Correct Answer: C) 2012. 15. A trade deficit occurs in which of the following situations? A) When imports and exports are equal. B) When imports are greater than exports. C) When exports are greater than imports. D) When exports and imports are zero. Show Answer Correct Answer: B) When imports are greater than exports. 16. Includes the following countries:Iceland, Liechtenstein, Norway and Switzerland A) EFTA. B) Canada-European Free Trade Association. C) Regional Trade Agreement. D) Trade Bloc. Show Answer Correct Answer: A) EFTA. 17. Promote international monetary cooperation A) World Trade Organization. B) World Bank. C) International Monetary Fund. D) None of above. Show Answer Correct Answer: C) International Monetary Fund. 18. What is a valid economic argument in favour of trade protection? A) It allows greater consumer choice. B) It encourages trade liberalisation. C) It helps support infant industries. D) It keeps prices lower. Show Answer Correct Answer: C) It helps support infant industries. 19. To selling only children garments is the example of A) Single product shop. B) Single line shop. C) General store. D) None of the above. Show Answer Correct Answer: A) Single product shop. 20. With regards to international trade, the US consistently has A) A negative trade balance/trade deficit. B) A positive trade balance/trade surplus. C) Balanced trade. D) None of the above. Show Answer Correct Answer: A) A negative trade balance/trade deficit. 21. International trade is actually a war since only developed countries achieve greater prosperity. A) True. B) False. Show Answer Correct Answer: B) False. 22. To stop buying a good or service for trade or political reasons A) Boycott. B) Tariff. C) Embargo. D) Quota. Show Answer Correct Answer: A) Boycott. 23. David Ricardo introduced the theory of comparative advantage A) False. B) True. Show Answer Correct Answer: B) True. 24. These refer to economies of scale enjoyed by an entire industry. For instance, suppose the government wants to increase steel production. In order to do so, the government announces that all steel producers who employ more than 10, 000 workers will be given a 20% tax break. A) Perfectly competitive market. B) External economies of scale. C) Economies of scale. D) Internal economies of scale. Show Answer Correct Answer: B) External economies of scale. 25. Taxes on goods coming into a country from another country A) Tariff. B) Embargo. C) Subsidy. D) Quota. E) Standard. Show Answer Correct Answer: A) Tariff. 26. The largest employer in the state of Georgia is ..... A) Delta Airlines. B) Georgia Port Authority. C) Hartsfield-Jackson International Airport. D) Coca Cola. Show Answer Correct Answer: C) Hartsfield-Jackson International Airport. 27. Which of the following is not a type of e-commerce business transaction? A) Business-to-consumer (B2C). B) Consumer-to-government (C2G). C) Business-to-business (B2B). D) Consumer-to-consumer (C2C). Show Answer Correct Answer: B) Consumer-to-government (C2G). 28. Which term refers to a company operating in multiple countries? A) Globalization. B) Protectionism. C) Comparative Advantage. D) Multinational Corporation (MNC). Show Answer Correct Answer: D) Multinational Corporation (MNC). 29. What is the term for sending goods or services to another country for sale? A) Importing. B) Exporting. C) Shipping. D) Transporting. Show Answer Correct Answer: B) Exporting. 30. Samuel de Champlain was the one who wrote about his discovery of the Niagara Falls in Canada. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. ← PreviousNext →Related QuizzesInternational Economics QuizzesEconomics QuizzesInternational Trade Quiz 1International Trade Quiz 2International Trade Quiz 3International Trade Quiz 4International Trade Quiz 5International Trade Quiz 6International Trade Quiz 7International Trade Quiz 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books