This quiz works best with JavaScript enabled. Home > Finance > Economics > International Economics > International Trade > International Trade – Quiz 82 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 82 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which union controls most of the oil, in the world? A) NAFTA. B) WTO. C) EU. D) OPEC. Show Answer Correct Answer: D) OPEC. 2. The dealings in ..... trade may be carried in different currencies. A) Internal trade. B) External trade. C) Both of the above. D) None of the Above. Show Answer Correct Answer: B) External trade. 3. South Africa can produce 1 barrel of oil using 3 units of land and can produce 1 karat of diamonds using 1 unit of land. On the other hand, Saudi Arabia can produce 1 barrel of oil using 1/2 unit of land and can produce 1 karat of Diamond using 6 units of land. Which country has comparative advantage in land production? A) Saudi Arabia. B) South Africa. C) Both Countries. D) None. Show Answer Correct Answer: D) None. 4. What does the term "WTO" stand for? A) World Trading Organs. B) International Trade Organization. C) World Trade Organization. D) Multilateral Trade Organization. Show Answer Correct Answer: C) World Trade Organization. 5. When the economy of two countries depend on each other, it's called: A) Isolationism. B) Economic interdependence. C) Outsourcing. D) Multinational cooperation. Show Answer Correct Answer: B) Economic interdependence. 6. People who carry out activities selling goods abroad are called..... A) Exporter. B) Importer. C) Impor. D) Export. Show Answer Correct Answer: A) Exporter. 7. Business transactions between Lithuania and the United States involve members of A) The EU and OPEC. B) The EU and NAFTA. C) COMESA and NAFTA. D) COMESA and OPEC. Show Answer Correct Answer: B) The EU and NAFTA. 8. An attempt to make someone do something for you, in a non legal way, by giving the person money, presents, or something else that he or she wants. A) Bribery. B) Corruption. C) Masonry. D) Compliance. Show Answer Correct Answer: A) Bribery. 9. Commercial exchange between nations that is conducted on free market principles, without regulations. A) Infrastructure. B) Free trade. C) Joint venture. D) Corporate. Show Answer Correct Answer: B) Free trade. 10. What will be the impact of a fall in the exchange rate on a business that sells imported goods in its own country? A) None. B) It will have to pay more for those goods. C) It will pay less for those goods. D) None of above. Show Answer Correct Answer: B) It will have to pay more for those goods. 11. When a currency is determined by supply and demand for a currency relative toother currencies A) Spot Rate. B) Floating Exchange Rate. C) Fixed Exchange Rate. D) Forward Rate. Show Answer Correct Answer: B) Floating Exchange Rate. 12. Which of the following accurately defines embargo? A) A special tax placed on foreign goods sold in the U.S. B) A method used to stop the shipment of certain products to or from particular countries. C) A packing and shipping regulation for hazardous products. D) A fixed limit on the amount of import or export of a product. Show Answer Correct Answer: B) A method used to stop the shipment of certain products to or from particular countries. 13. Which of the following statements BEST describes the effects of fre e trade? A) Total surplus increases. B) Gains from trade decrease as the markets become more extensive. C) The overall size of the economy shrinks. D) Everyone is made better off. E) The costs exceed the benefits. Show Answer Correct Answer: A) Total surplus increases. 14. Which approach views power as secondary to security? A) Marxism. B) Mercantilism. C) Liberalism. D) Rational Choice. Show Answer Correct Answer: B) Mercantilism. 15. The EU placed this barrier to trade on the amount of clothes that can be imported from China to the EU. A) Subsidy. B) Tariff. C) Embargo. D) Quota. Show Answer Correct Answer: D) Quota. 16. The value of the dollar decreases A) Exchange rates. B) Appreciation. C) Depreciation. D) All of the above. Show Answer Correct Answer: C) Depreciation. 17. What would someone who supports protectionism likely say? A) The United States should end quotas so consumers can have greater access to more imported goods and services. B) The United States should end tariffs so consumers see more competitive prices on imported goods and services. C) The United States should increase subsidies to domestic producers so they can produce more at more competitive prices. D) The United States should pursue free trade agreements with all of the major trading partners to maintain peaceful relationships. Show Answer Correct Answer: C) The United States should increase subsidies to domestic producers so they can produce more at more competitive prices. 18. Which of the following methods is NOT used to measure a country's national income? A) Output. B) Expenditure. C) Income. D) Accounting. Show Answer Correct Answer: D) Accounting. 19. Which of the following changes would help a business that aims to export most of the goods it produces? A) A rise in the exchange rate. B) A fall in the exchange rate. C) No change in the exchange rate. D) None of above. Show Answer Correct Answer: B) A fall in the exchange rate. 20. The US government levies a 51 cent tariff on every wristwatch imported into the US. Thus, if 1000 watches are imported, the government collects $ 510 in tariff revenue.The tariff collected is an example of ..... A) To the value of the tariff. B) Specific tariff. Show Answer Correct Answer: B) Specific tariff. 21. Business don't need to assess if a country believes in free markets, government control, or heavy intervention. These are the factors that may not influence the choice of investors. A) WRONG. B) CORRECT. Show Answer Correct Answer: A) WRONG. 22. According to David Ricardo, a country will have a comparative advantage in the product in which its ..... A) Labor productivity is relatively low. B) Labor mobility is relatively low. C) Labor productivity is relatively high. D) Labor mobility is relatively high. Show Answer Correct Answer: C) Labor productivity is relatively high. 23. The balance of trade for the US is currently A) We import more than we export. B) We depend on ourselves more than we depend on imports. C) We export more than we import. D) None of above. Show Answer Correct Answer: A) We import more than we export. 24. Which of the following is true of the European Union? A) The EU was put into place in order to promote peace and stability. B) The EU requires all passports to be shown when moving between boarders. C) The EU allows for the flow of capital, goods and services, and people throughout its member countries freely. D) The EU has 28 different types of currency. Show Answer Correct Answer: C) The EU allows for the flow of capital, goods and services, and people throughout its member countries freely. 25. Which of these BEST describes a situation in which a country has a "trade surplus?" A) Their exports exceed their imports. B) Their inflation exceeds 1%. C) Their imports exceed their exports. D) Their unemployment exceeds 6%. Show Answer Correct Answer: A) Their exports exceed their imports. 26. Choose the best answer about the relation between inflation rate and growth rate A) An increase in growth rate would put a downward pressure on the inflation rate. B) Rapid economic growth reduces demand on money, hence lowering inflation. C) Low inflation can signal an overheated economy. D) If economic growth accelerates very rapidly, producers lower prices continually. Show Answer Correct Answer: A) An increase in growth rate would put a downward pressure on the inflation rate. 27. Balance of Payments is an accounting statement that records monetary transactions between ..... A) Residents of a nation and the rest of the world. B) Non-residents and the rest of the world. C) Residents of a nation and non-residents. D) None of the above. Show Answer Correct Answer: B) Non-residents and the rest of the world. 28. What is the potential consequence of neglecting government spending on roads, schools, welfare, and healthcare? A) Increased tax receipts and improved non-material living standards. B) Decreased pressure on existing services and improved non-material living standards. C) Increased stress for workers and worsened non-material living standards. D) Decreased foreign debt and improved non-material living standards. Show Answer Correct Answer: C) Increased stress for workers and worsened non-material living standards. 29. The world trade organization is..... A) ASEAN. B) WTO. C) Capable. D) APEC. Show Answer Correct Answer: B) WTO. 30. One of the following is NOT controlled by Customs: A) The assessment and collection of customs duties on imports. B) Security-oriented control measures. C) The prevention of illegal trade or smuggling. D) Issuing documents that allows entry to a country for individuals. Show Answer Correct Answer: D) Issuing documents that allows entry to a country for individuals. ← 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