Business Chapter 6 Mulitble Choice

25 Questions
Business Quizzes & Trivia

Most countries thrive based on the amount of products they either import or export. How conversant are you with the products imported by most countries are known for exporting? Take up the business chapter 6 multiple-choice quiz and get to see how much of it you remember. All the best!

Sample Question

Computers that are manufactured in the United State and sold in Norway are categorized as U.S. __________.

Imports

Exports

International trade

Outsourcing

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Questions and Answers
  • 1. 
    Computers that are manufactured in the United State and sold in Norway are categorized as U.S. __________.
    • A. 

      Imports

    • B. 

      Exports

    • C. 

      International trade

    • D. 

      Outsourcing

  • 2. 
    During the past decade, the value of both U.S. imports and exports has ________.
    • A. 

      Decreased

    • B. 

      Remained about the same

    • C. 

      More than doubled

    • D. 

      Risen slightly

  • 3. 
    Los Angeles-based PMI Telecom buys cell phones manufactured in Asia and sells them in the United States. PMI is engaging in the international business activity known as ________.
    • A. 

      Dumping

    • B. 

      Exporting

    • C. 

      Counter trade

    • D. 

      Importing

  • 4. 
    Importing is defined as ________.
    • A. 

      Selling goods that have been produced exclusively for other countries

    • B. 

      Buying goods that have been made domestically

    • C. 

      Buying foreign goods, raw materials, and services

    • D. 

      Selling goods abroad at a price lower than that charged in the domestic market

  • 5. 
    A large part of the U.S. economy’s growth comes from __________.
    • A. 

      Petroleum exports

    • B. 

      The import of goods and services

    • C. 

      The export of goods and services

    • D. 

      Production of consumer electronic products

  • 6. 
    Over the past decade, which of the following countries had the highest annual rate of GDP growth?
    • A. 

      United States

    • B. 

      China

    • C. 

      Canada

    • D. 

      Japan

  • 7. 
    • A. 

      United States

    • B. 

      India

    • C. 

      China

    • D. 

      Japan

  • 8. 
    • A. 

      United States

    • B. 

      Japan

    • C. 

      Germany

    • D. 

      France

  • 9. 
    A comparative advantage in a good or service means that ________.
    • A. 

      Compared to another country, a nation can produce it more cheaply

    • B. 

      The nation with the comparative advantage has a monopoly on the good or service

    • C. 

      A nation must be the absolute best at producing something

    • D. 

      Compared to another good or service, a nation will produce the one that it produces most efficiently

  • 10. 
    Japan has maintained a(n) __________ in the production of electronics due to technological expertise.
    • A. 

      Comparative advantage

    • B. 

      Absolute advantage

    • C. 

      Balance of trade

    • D. 

      Favorable exchange rate

  • 11. 
    The hypothetical country Uzambia is the sole world supplier of Boronite. Uzambia has ________.
    • A. 

      A floating exchange rate

    • B. 

      An absolute advantage in marketing the item

    • C. 

      A favorable balance of trade

    • D. 

      A comparative advantage in marketing the item

  • 12. 
    The country Artesia exported products totaling $86 billion last year, Artesia imported products valued at $43 billion. Artesia has a(n) _________.
    • A. 

      Exchange rate of 2 to 1

    • B. 

      Trade deficit of $43 billion

    • C. 

      Trade surplus of $43 billion

    • D. 

      Unfavorable balance of payments

  • 13. 
    A trade deficit occurs when __________.
    • A. 

      Import exceed exports

    • B. 

      Foreign-aid payments exceed exports

    • C. 

      Imports are sold at low profits

    • D. 

      There is a net flow of money into a country

  • 14. 
    Measured in dollor values, the U.S. imports more ________ than any other good.
    • A. 

      Crude oil

    • B. 

      Automobiles and trucks

    • C. 

      Electrical machinery

    • D. 

      Agricultural products

  • 15. 
    A leading U.S. export is _________.
    • A. 

      Clothing

    • B. 

      Movies

    • C. 

      Coffee

    • D. 

      Petroleum

  • 16. 
    A balance of payments surplus means ___________.
    • A. 

      An overall in flow of lone from abroad

    • B. 

      An overall outflow of money to other countries

    • C. 

      That imports exceed exports

    • D. 

      That exports exceed imports

  • 17. 
    Allison, a U.S. citizen, travels to the Far East and spends $2000 on souvenirs. She is contributing to the _________.
    • A. 

      U.S. trade surplus

    • B. 

      U.S. balance of payments deficit

    • C. 

      International trade war

    • D. 

      Growing exchange rate

  • 18. 
    A country’s exchange rate is based on ____________.
    • A. 

      The rate at which its currency can be exchanged for other currencies

    • B. 

      The number of foreign banks it has

    • C. 

      Tariffs and related trade restrictions

    • D. 

      The relationship between its imports and exports

  • 19. 
    Northumberland, a small European country, reduces the value of its currency. This reduction is known as _____________.
    • A. 

      Outsourcing

    • B. 

      Counter trade

    • C. 

      An exchange cut

    • D. 

      Devaluation

  • 20. 
    • A. 

      American tourists visiting Europe

    • B. 

      European firms exporting goods to the U.S

    • C. 

      American farmers exporting goods to Europe

    • D. 

      American firms with euro dominated loans

  • 21. 
    The price of imported goods is increased through ______________.
    • A. 

      Revaluation of a nation’s currency

    • B. 

      Devaluation of a nation’s currency

    • C. 

      Free trade

    • D. 

      The upward adjustment of a country’s exchange rate

  • 22. 
    A country has a good chance of selling more of its goods abroad if it _________.
    • A. 

      Reevaluates its currency

    • B. 

      Sends more tourists abroad

    • C. 

      Devalues its currency

    • D. 

      Sets high tariffs on imported goods

  • 23. 
    Assume the value of the U.S. dollar falls relative to the Japanese yen. Which of the following would benefit?
    • A. 

      U.S. visitors to Japan

    • B. 

      U.S. firms with yen denominated loans

    • C. 

      Japanese exporters

    • D. 

      Japanese visitors to the U.S.

  • 24. 
    All of the following are social and cultural barriers EXCEPT
    • A. 

      Language

    • B. 

      Gift-giving traditions

    • C. 

      Religious attitudes

    • D. 

      Currency shifts

  • 25. 
    Measured in terms of the percentage of households, which of the following has the lowest rate of cell phone use?
    • A. 

      Hong Kong

    • B. 

      Great Britain

    • C. 

      United States

    • D. 

      Finland