This quiz works best with JavaScript enabled. Home > Finance > Economics > International Economics > International Trade > International Trade – Quiz 5 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 5 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What does the slope of a production possibility frontier represent? A) The elasticity of demand for the y-axis good. B) Autarky price of one good in terms of another. C) Terms of trade between two goods. D) Producer su rplus as a function of production. E) The opportunity cost of producing one good in terms of another. Show Answer Correct Answer: E) The opportunity cost of producing one good in terms of another. 2. The main reason liberalism rejects the idea of protectionism is because A) Protectionism encourages inefficiency in the market. B) Protectionism does not really save jobs despite its cost. C) Protectionism promotes retaliation among countries whose products are subject to restrictions. D) Protectionism is too difficult and costly to enforce. Show Answer Correct Answer: A) Protectionism encourages inefficiency in the market. 3. Which of the following is the nature of international trade according to Marxism? A) Competition. B) Dependence. C) Cooperation. D) Interdependence. Show Answer Correct Answer: B) Dependence. 4. Country A can produce more coal than Country B. An economist would say that Country A has ..... over country B. A) A comparative advantage. B) An export advantage. C) A production possibility advantage. D) An absolute advantage. Show Answer Correct Answer: D) An absolute advantage. 5. "Production" is concerned with selecting the merchandise, stocking the store, and ringing up the sale at the cash register. A) MTV. B) Retailer. C) Banks. D) None of above. Show Answer Correct Answer: B) Retailer. 6. Occurs when a country has special natural resources or talents that allow it to produce an item at the lowest cost possible. A) Comparative advantage. B) Absolute advantage. C) Cooperative advantage. D) Trade advantage. Show Answer Correct Answer: B) Absolute advantage. 7. The following centers of economic excellence in Indonesia that produce ores containing copper, gold and silver are..... A) Pangkalan Brandan Refinery. B) PT Freeport Indonesia. C) Balongan Refinery. D) Balikpapan Refinery. Show Answer Correct Answer: B) PT Freeport Indonesia. 8. Refers to the particular countries and kinds of countries toward which a country's exports are sent, and from which its imports are brought. A) Direction of trade. B) Composition of trade. C) Volume of trade. D) Balance of trade. Show Answer Correct Answer: A) Direction of trade. 9. What is a limit on imports? A) Embargo. B) Quota. C) Export. D) Subsidy. Show Answer Correct Answer: B) Quota. 10. Which one does not belong to the group? A) Common law. B) Civil law. C) Theocratic law. D) Criminal law. E) None of the above. Show Answer Correct Answer: D) Criminal law. 11. Complete:You asked for a salary of $ 60, 000, and we said the position paid $ 52, 000. Let's ..... and say $ 56, 000 A) Lemon. B) Haggled. C) Miss out. D) Split the difference. Show Answer Correct Answer: D) Split the difference. 12. The use of trade barriers to protect domestic industries and jobs works only if other countries do not retaliate with their own trade barriers A) False. B) True. Show Answer Correct Answer: B) True. 13. BOP stands for..... A) Bank of Payments. B) Balance of Payments. C) Bill of Payments. D) Barrier of Payments. Show Answer Correct Answer: B) Balance of Payments. 14. Which is the benefit of International trade? A) Restricts the growth of indigenous industries. B) Improving employment potentials. C) Depletion of natural resources in the home work. D) Import of harmful goods. Show Answer Correct Answer: B) Improving employment potentials. 15. Business taking place between ..... is known as international business A) Two cities. B) Two countries. C) Two districts. D) Two states. Show Answer Correct Answer: B) Two countries. 16. Which organization administers the WIPO Madrid System? A) United Nations. B) World Intellectual Property Organization. C) European Union. D) World Health Organization. Show Answer Correct Answer: B) World Intellectual Property Organization. 17. Guidelines that imports must meet to enter a country A) Standards. B) Tariff. C) Quota. D) 'Subsidy. E) Embargo. Show Answer Correct Answer: A) Standards. 18. A nation is better off when it produces goods and services for which it has a comparative advantage A) Law of comparative advantage. B) Exports. C) The trade fails. D) Imports. Show Answer Correct Answer: A) Law of comparative advantage. 19. We import most of our goods from China. A) FALSE. B) TRUE. Show Answer Correct Answer: B) TRUE. 20. How do import quotas impact the availability of goods in a country? A) Import quotas increase the availability of goods in a country. B) Import quotas have no impact on the availability of goods in a country. C) Import quotas limit the availability of goods in a country. D) Import quotas only impact the availability of services in a country. Show Answer Correct Answer: C) Import quotas limit the availability of goods in a country. 21. Absolute advantage is the ability to produce goods or services with fewer resources than other country. A) True. B) False. Show Answer Correct Answer: A) True. 22. How does a tariff protect infant industries? A) Reduces sales tax for new products. B) Raises trade barriers for imports of child-care products. C) Reduces foreign competition by making foreign products more expensive. D) None of above. Show Answer Correct Answer: C) Reduces foreign competition by making foreign products more expensive. 23. By having the policy settings to benefit from trade, investment and skilled migration, Australia's economy is stronger and our standard of living higher. A) True. B) False. Show Answer Correct Answer: A) True. 24. It is to increase the return through higher revenues and or lower cost what aspect of why do firms expand internationally? A) ECONOMIC MOTIVES. B) DEFENSIVE MOTIVES. C) STRATEGIC MOTIVES. D) OFFENSIVE MOTIVES. Show Answer Correct Answer: A) ECONOMIC MOTIVES. 25. A good or service brought in from another country for sale. A) Import. B) Export. C) Tariff. D) None of above. Show Answer Correct Answer: A) Import. 26. A disadvantage of international trade:There are other costs to firms that trade internationally, such as complying with other countries' legal and technical requirements, translating legal documents and advertising material, and performing market research for overseas markets. A) Yes, I understand this from the notes. B) No, I don't understand this from the notes. C) No, I don't understand this, as I have not read the notes. D) None of above. Show Answer Correct Answer: A) Yes, I understand this from the notes. 27. ..... is protected by tariffs and quotas in the short run. A) Foreign employment. B) Consumer choice. C) Domestic jobs. D) Price wars. Show Answer Correct Answer: C) Domestic jobs. 28. Something that blocks you so that movement, going forward, or action is prevented or made more difficult A) Obstacle. B) Retrictions. C) Handicap. D) Block. Show Answer Correct Answer: A) Obstacle. 29. What was the purpose of the founding of the European Union (E.U.) in 1993? A) To fight the growing global network of terrorist organizations. B) To become an economic power to compete with the United States. C) To guarantee the free movement of people, goods, & services between nations. D) To prevent the poor from causing a revolution in underdeveloped nations. Show Answer Correct Answer: C) To guarantee the free movement of people, goods, & services between nations. 30. Forms of financial contribution are: A) Direct fund transfer. B) Procurement of goods. C) Appointment of private agencies/institutions in implementing certain projects. D) All true. Show Answer Correct Answer: D) All true. ← PreviousNext →Related QuizzesInternational Economics QuizzesEconomics QuizzesInternational Trade Quiz 1International Trade Quiz 2International Trade Quiz 3International Trade Quiz 4International Trade Quiz 6International Trade Quiz 7International Trade Quiz 8International Trade Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books