This quiz works best with JavaScript enabled. Home > Finance > Economics > International Economics > International Trade > International Trade – Quiz 77 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 77 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Without trade, markets are large enough to support the production necessary to achieve economies of scale. A) True. B) False. Show Answer Correct Answer: B) False. 2. A majority of the total world merchandise trade occurs among ..... A) Middle-income and low-income economies. B) High-income economies. C) Newly industrialized countries. D) Emerging markets. Show Answer Correct Answer: B) High-income economies. 3. British economist who explained the Recardian Theory A) ADAM SMITH. B) ADAM SCOTTS. C) RICARDO SOLIS. D) DAVID RICARDO. Show Answer Correct Answer: D) DAVID RICARDO. 4. What is Import Trade? A) The export of goods from one country to another. B) The sale of goods to a foreign country. C) The purchase or buying of goods or services from a foreign country for consumption in the importing country. D) The re-export of goods from a third country. Show Answer Correct Answer: C) The purchase or buying of goods or services from a foreign country for consumption in the importing country. 5. The oil before refining process is called ..... A) Coconut oil. B) Castor Oil. C) Crude oil. D) None of above. Show Answer Correct Answer: C) Crude oil. 6. Quota will gives an extra benefit to the government in term of addional revenue A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 7. The United States does not allow any company to legally import goods from Cuba. This type of trade barrier is known as a/an ..... (check all that apply) A) Standard. B) Subsidy. C) Quota. D) Embargo. E) Tariff. Show Answer Correct Answer: D) Embargo. 8. Quotas are taxes imposed on imported goods and services. A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 9. Which of the following is an example of 'Entreport'? A) Athens. B) Kolkata Port. C) Singapore. D) London. Show Answer Correct Answer: C) Singapore. 10. Banks must hold a certain amount of money out of circulation. This is referred to as ..... A) Hoard. B) Emergency Fund. C) Stockpile. D) Reserve requirement. Show Answer Correct Answer: D) Reserve requirement. 11. International business is ..... international trade. A) Narrower than. B) Broader than. C) Same as. D) Nowhere related to. Show Answer Correct Answer: B) Broader than. 12. Statements that are NOT the scope of international trade activities are ..... A) Pak Rudi is an Indonesian citizen, selling goods to his Australian national who lives in Semarang. B) Indonesia routinely sends workers to several ASEAN countries. C) During the fasting month, imports of dates from Saudi Arabia are increasing to meet domestic needs. D) Pak Harto likes wearing Japanese automotive products. Show Answer Correct Answer: A) Pak Rudi is an Indonesian citizen, selling goods to his Australian national who lives in Semarang. 13. The most common mode of freight forwarding: A) All above. B) Plane. C) Railway. D) Truck. Show Answer Correct Answer: D) Truck. 14. The idea that a country gets more power by having more exports than imports, and accumulating more gold and silver than other countries. A) Mercantilism. B) Absolute advantage. C) Comparative Advantage. D) International Trade Theory. Show Answer Correct Answer: A) Mercantilism. 15. What is the term used to refer to a set of arrangements by which individuals and firms exchange money now for promises to pay in the future? A) Capital Market. B) Financial Market. C) Liability Market. D) Cash Market. Show Answer Correct Answer: A) Capital Market. 16. A detailed summary of all bills of lading and cargo that a ship is carrying A) Shipping Note. B) Manifest. C) Bill of Lading. D) Certificate of Origin. Show Answer Correct Answer: B) Manifest. 17. Assuming that, In the United States, it takes 5 hours of labors to produce a ton of potatoes and 10 to produce a ton of coal. What is the opportunity cost of potatoes production? A) 1/5 ton of coal. B) 1/10 tons of coal. C) 2 ton of coal. D) 1/2 ton of coal. Show Answer Correct Answer: D) 1/2 ton of coal. 18. Ana takes 30 minutes to wash the dishes and one hour to vacuum the house. Her husband, Joe, takes 15 minutes to wash the dishes and 45 minutes to vacuum. Who should do the vacuuming A) Well. B) Joe. Show Answer Correct Answer: A) Well. 19. What is one limitation of the theory of comparative advantage regarding the assumption of perfect information? A) It assumes that countries produce identical goods. B) It assumes that every country should specialize in producing the good with the lowest opportunity cost. C) It assumes that technology remains constant. D) It assumes that everyone has the same knowledge of prices and quantities in the market at the same time. Show Answer Correct Answer: D) It assumes that everyone has the same knowledge of prices and quantities in the market at the same time. 20. Korea increases its tariff on goods from the Philippines. Which of the following groups is hurt by this trade barrier? A) Korean manufacturing. B) Korean Consumers. C) Korean Workers. D) Korean Government. Show Answer Correct Answer: B) Korean Consumers. 21. Which product did Vietnam import the most in 2022? A) Phones and accessories. B) Wood and wood products. C) Vehicles and spare parts. D) Rice. Show Answer Correct Answer: A) Phones and accessories. 22. U.S. imports decline and the price of imports increases. A) Appreciation. B) Depreciation. Show Answer Correct Answer: B) Depreciation. 23. A product is said to be a 'similar product' when..... A) Have the same character/physical form. B) There is similarity in the purpose of use (end-use). C) Consumer preferences for the same goals/things. D) All are correct. Show Answer Correct Answer: D) All are correct. 24. The U.S. was founded on the very basis of international trade as Christopher Columbus discovered the new world while looking for a new route to engage in international trade. A) False. B) True. Show Answer Correct Answer: B) True. 25. Currency used in Canada A) Exchange rate. B) Canadian Dollar. C) Currency. D) Exchange. E) Weight. Show Answer Correct Answer: B) Canadian Dollar. 26. What is the GDP of the U.S.? A) 5 Trillion Dollars. B) 1 Trillion Dollars. C) 12 Trillion Dollars. D) 18 Trillion Dollars. Show Answer Correct Answer: D) 18 Trillion Dollars. 27. According to the rule for allocating world production where does goods will always be produced? A) Where it is hardest to make them. B) Where it is costliest to make them. C) Where it is easiest to make them. D) Where it is cheapest to make them. Show Answer Correct Answer: D) Where it is cheapest to make them. 28. Is a trade surplus or deficit better for a country A) The trade fails. B) Balance of trade. C) Surplus. D) Trade surplus. Show Answer Correct Answer: C) Surplus. 29. Sports teams having their logo on memorabilia is considered? A) Franchising. B) Licensing. C) Infrastructure. D) Joint venture. Show Answer Correct Answer: B) Licensing. 30. ..... is the most basic economic problem. A) Labor. B) Scarcity. C) Capital. D) Greed. Show Answer Correct Answer: B) Scarcity. ← 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