This quiz works best with JavaScript enabled. Home > Finance > Economics > International Economics > International Trade > International Trade – Quiz 69 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 69 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Despite many sectors declined in trade post and during Covid, But the trade in Medical supplies has increased. By what percentage? A) 16% in medical supplies and 50% in PPE. B) 25% in medical supplies and 75% in PPE. C) Only the trade in medical supplies has increased, no impact on PPE. D) 100% increase in both . Show Answer Correct Answer: A) 16% in medical supplies and 50% in PPE. 2. What is globalisation? A) Globalisation is the process that enables product, financial and investment markets to operate around the globe. B) Globalisation is the process that enables product, financial and investment markets to operate around the moon. Show Answer Correct Answer: A) Globalisation is the process that enables product, financial and investment markets to operate around the globe. 3. How many countries are currently members of the WIPO Madrid System? A) 50. B) 75. C) 90. D) 108. Show Answer Correct Answer: D) 108. 4. ..... producing a good over another country if it uses fewer resources to produce that good. A) Trade deficit. B) Law of comparative advantage. C) Balance of trade. D) Absolute advantage. Show Answer Correct Answer: D) Absolute advantage. 5. There are 2 things that need to be considered so that the product is easily recognized by buyers, namely..... A) Promotion and advertising. B) Sales and purchases. C) Branding and product packaging. D) Product uniqueness and differentiation. Show Answer Correct Answer: C) Branding and product packaging. 6. What are imports? A) Goods and services sold to other countries. B) Items bought from other countries. C) The difference between the amount of money that comes into a country and the amount that goes out of it. D) The value of a currency in one country compared with the value in another country. Show Answer Correct Answer: B) Items bought from other countries. 7. If production of a car requires K = 100 units and L = 40 units, production of a motorbike requires K = 60 units and L = 30 units, then according to the H-O theory: A) Car production is capital-intensive. B) Car production is labor-intensive. C) Motorbike is labor-abundant. D) Motorbike is capital-abundant. Show Answer Correct Answer: A) Car production is capital-intensive. 8. A trading bloc may be a A) Common market or monetary union. B) Customs union or common market. C) Customs union or monetary union. D) Free trade area, customs union or common market. Show Answer Correct Answer: D) Free trade area, customs union or common market. 9. What is the most likely benefit for a low-income economy if it removes tariffs on imported goods and services? A) More choice for domestic consumers. B) More exports by domestic firms. C) More employment in declining industries. D) More tax revenue from imports. Show Answer Correct Answer: A) More choice for domestic consumers. 10. What would a free-trader most likely support? A) Quotas. B) Revenue tariffs. C) NAFTA. D) Embargoes. Show Answer Correct Answer: C) NAFTA. 11. Refers to the interdependence between countries arising from the integration of different aspects of the economy, such as trade A) International Trade. B) International Relation. C) Balance of Trade. D) Globalization. Show Answer Correct Answer: D) Globalization. 12. When a country has the ability to produce more of a product relative to another country. A) Positive Net Export. B) Favorable Balance of Favorable Balance of Trade. C) Absolute Advantage. D) Comparative Advantage. Show Answer Correct Answer: C) Absolute Advantage. 13. Developing nations often employ protectionist policies in order to A) Keep out goods from well-developed nations. B) Keep out goods from other developing nations. C) Bring in goods from well-developed nations. D) Bring in goods from other developing nations. Show Answer Correct Answer: A) Keep out goods from well-developed nations. 14. One effect of tariffs and quotas is higher prices on domestic products. A) True. B) False. Show Answer Correct Answer: A) True. 15. Mercantilism differs from neo-mercantilism in that: A) Mercantilism advocates trade surplus via colonization. B) Mercantilism advocates trade balance. C) Mercantilism advocates the role of government and neo-mercantilism advocates for use of military force. D) Neo-mercantilism advocates trade surplus through fast economic development. Show Answer Correct Answer: D) Neo-mercantilism advocates trade surplus through fast economic development. 16. A tariff and import quota will both ..... A) Increase the quantity of imports and raise domestic price. B) Increase the quantity of imports and lower the domestic price. C) Reduce the quantity of imports and raise the domestic price. D) Reduce the quantity of imports and lower the domestic price. Show Answer Correct Answer: C) Reduce the quantity of imports and raise the domestic price. 17. Suppose Vietnam and Laos produce two products-Coffee and Noodles. Vietnam can produce 1 kilo of coffee in 10 hours or 1 kilo of noodles in 4 hours.Laos can produce 1 kilo of coffee in 15 hours or 1 kilo of noodles in 10 hours.Which country has a comparative advantage in coffee? A) Vietnam. B) Laos. Show Answer Correct Answer: A) Vietnam. 18. The state government has received tax revenue but has not yet decided what to spend the money on. This is a A) Injection, consumption. B) Leakage, taxation. C) Injection, taxation. D) Leakage, consumption. Show Answer Correct Answer: B) Leakage, taxation. 19. A trade agreement that eleminates barriers between the United States, Canada, and Mexico. A) ASEAN. B) EU. C) APEC. D) NAFTA. Show Answer Correct Answer: D) NAFTA. 20. Government policy can: A) Affect demand through product standards. B) Influence rivalry through regulation and antitrust laws. C) Impact the availability of highly educated workers and advanced transportation infrastructure. D) All of the above. Show Answer Correct Answer: D) All of the above. 21. When your exports are less than your imports, this exists? A) Trade surplus. B) Trade fails. Show Answer Correct Answer: B) Trade fails. 22. What is the main criticism of NAFTA that Avery, Ethan, and Isla all agreed on? A) It increased US trade deficits. B) It decreased US manufacturing jobs. C) It favored rich countries and neglected workers' rights. D) All of the above. Show Answer Correct Answer: D) All of the above. 23. In 1973, many Middle Eastern countries stopped exporting oil to the United States in protest against the US' support of Israel. What type of trade barrier is this? A) Embargo. B) Tariff. C) Mountain. D) Quota. Show Answer Correct Answer: A) Embargo. 24. What is the main benefit of international trade? A) Increased domestic production. B) Higher employment rates. C) Improved standard of living. D) Reduced competition. Show Answer Correct Answer: C) Improved standard of living. 25. What is one assumption of the theory of comparative advantage regarding resource allocation? A) Every country invests in technology to make their economies more efficient. B) Every country has the same knowledge of prices and quantities in the market at the same time. C) Every country should specialize in producing the good with the lowest opportunity cost. D) Every country is able to solely focus on producing a single good. Show Answer Correct Answer: C) Every country should specialize in producing the good with the lowest opportunity cost. 26. A current account deficit most likely means that A) Imports exceed exports. B) There is an official reserves surplus. C) There is no impact on the exchange rate. D) There is a financial account surplus. Show Answer Correct Answer: A) Imports exceed exports. 27. The United States decides it wants to encourage citizens to buy televisions that are made in America, so it decides to set a limit on the number of televisions that can be imported from China and Japan. This limit is an example of a ..... A) Quota. B) Free trade agreement. C) Trade union. D) Tariff. Show Answer Correct Answer: A) Quota. 28. It's the authority or organization that controls the flow of goods in and out of a country. Collect the duties or taxes applied to imports and exports. A) Customs / Duty. B) Logistics Operator. C) Shipping Agent. D) Freight Forwarder. Show Answer Correct Answer: A) Customs / Duty. 29. A U.S. tariff on the import of sugar ..... A) Makes the domestic price of sugar higher and U.S. consumer surplus higher. B) Makes the domestic price of sugar higher and U.S. consumer surplus lower. C) Makes the domestic price of sugar lower and U.S. consumer surplus higher. D) Makes the domestic price of sugar lower and U.S. consumer surplus lower. Show Answer Correct Answer: B) Makes the domestic price of sugar higher and U.S. consumer surplus lower. 30. Disputes that only bind some WTO member countries originate from..... A) Trade in Goods (GATT). B) Plurilateral Trade Agreements. C) Agreement on Trade-Related Aspects of Intelectual Property Rights (TRIPS). D) Trade in Services (GATS). Show Answer Correct Answer: B) Plurilateral Trade Agreements. ← 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