Can You Answer These Business MCQs?
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Computers that are manufactured in the United State and sold in Norway are categorized as U.S. __________.
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Imports
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Exports
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International trade
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Outsourcing
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Can you answer these business MCQs? Most countries thrive based on the number of products they either import or export. How conversant are you with the products imported by most countries that are known for exporting? Take up this business multiple-choice quiz and get to see how much you know. All the best!
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- 2.
During the past decade, the value of both U.S. imports and exports has ________.
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Decreased
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Remained about the same
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More than doubled
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Risen slightly
Correct Answer
A. More than doubledExplanation
Over the past decade, the value of both U.S. imports and exports has increased significantly. The phrase "more than doubled" indicates that the value has more than doubled, indicating a substantial increase in both imports and exports.Rate this question:
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- 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 ________.
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Dumping
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Exporting
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Counter trade
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Importing
Correct Answer
A. ImportingExplanation
PMI Telecom, based in Los Angeles, is buying cell phones manufactured in Asia and selling them in the United States. This activity involves bringing goods into the country for sale, which is known as importing.Rate this question:
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- 4.
Importing is defined as ________.
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Selling goods that have been produced exclusively for other countries
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Buying goods that have been made domestically
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Buying foreign goods, raw materials, and services
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Selling goods abroad at a price lower than that charged in the domestic market
Correct Answer
A. Buying foreign goods, raw materials, and servicesExplanation
Importing is the act of purchasing goods, raw materials, and services from foreign countries. This involves buying products that are produced outside of the domestic market and bringing them into the country for use or sale. Importing allows countries to access a wider range of goods and resources that may not be available domestically, and it plays a significant role in international trade and economic relationships between nations.Rate this question:
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- 5.
A large part of the U.S. economy’s growth comes from __________.
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Petroleum exports
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The import of goods and services
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The export of goods and services
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Production of consumer electronic products
Correct Answer
A. The export of goods and servicesExplanation
The correct answer is the export of goods and services. This is because when the U.S. exports goods and services to other countries, it generates revenue and stimulates economic growth. Exporting allows businesses to expand their customer base beyond domestic markets, leading to increased production, job creation, and overall economic prosperity.Rate this question:
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- 6.
Over the past decade, which of the following countries had the highest annual rate of GDP growth?
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United States
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China
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Canada
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Japan
Correct Answer
A. ChinaExplanation
China had the highest annual rate of GDP growth over the past decade. This can be attributed to several factors such as China's rapid industrialization, urbanization, and export-oriented economy. The country has implemented various economic reforms and policies that have fueled its growth, including opening up to foreign investment, investing in infrastructure, and promoting technological advancements. China's large population and domestic market also contribute to its economic expansion.Rate this question:
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- 7.
Which country ranks highest in terms of population?
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United States
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India
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China
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Japan
Correct Answer
A. ChinaExplanation
China ranks highest in terms of population because it has the largest population compared to the other countries listed.Rate this question:
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- 8.
Which of the following countries ranks high in terms of both population and wealth?
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United States
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Japan
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Germany
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France
Correct Answer
A. United StatesExplanation
The United States ranks high in terms of both population and wealth. It has the third-largest population in the world, after China and India, and it is also one of the wealthiest countries in terms of GDP. The United States has a strong economy and is home to many multinational corporations, which contribute to its overall wealth. Additionally, it has a high standard of living and a large middle class, further contributing to its wealth.Rate this question:
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- 9.
A comparative advantage in a good or service means that ________.
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Compared to another country, a nation can produce it more cheaply
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The nation with the comparative advantage has a monopoly on the good or service
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A nation must be the absolute best at producing something
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Compared to another good or service, a nation will produce the one that it produces most efficiently
Correct Answer
A. Compared to another good or service, a nation will produce the one that it produces most efficientlyExplanation
A comparative advantage in a good or service means that compared to another good or service, a nation will produce the one that it produces most efficiently. This means that the nation can produce the chosen good or service at a lower opportunity cost compared to other goods or services. It does not imply that the nation must be the absolute best at producing something or that it has a monopoly on the good or service.Rate this question:
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- 10.
Japan has maintained a(n) __________ in the production of electronics due to technological expertise.
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Comparative advantage
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Absolute advantage
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Balance of trade
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Favorable exchange rate
Correct Answer
A. Comparative advantageExplanation
Japan has maintained a comparative advantage in the production of electronics due to its technological expertise. This means that Japan is able to produce electronics more efficiently and at a lower cost compared to other countries. As a result, Japan is able to export electronics and compete in the global market, contributing to its overall economic growth and success in the electronics industry.Rate this question:
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- 11.
The hypothetical country Uzambia is the sole world supplier of Boronite. Uzambia has ________.
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A floating exchange rate
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An absolute advantage in marketing the item
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A favorable balance of trade
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A comparative advantage in marketing the item
Correct Answer
A. An absolute advantage in marketing the itemExplanation
An absolute advantage in marketing the item means that Uzambia is the most efficient and productive country in marketing Boronite compared to other countries. This implies that Uzambia can produce and sell Boronite at a lower cost or with higher quality than any other country, giving it a competitive edge in the global market. This advantage allows Uzambia to be the sole world supplier of Boronite.Rate this question:
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- 12.
The country Artesia exported products totaling $86 billion last year, Artesia imported products valued at $43 billion. Artesia has a(n) _________.
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Exchange rate of 2 to 1
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Trade deficit of $43 billion
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Trade surplus of $43 billion
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Unfavorable balance of payments
Correct Answer
A. Trade surplus of $43 billionExplanation
Artesia exported products totaling $86 billion, which means that the value of goods and services it sold to other countries exceeded the value of goods and services it bought from other countries. Since the value of imports is given as $43 billion, this indicates that Artesia had a trade surplus of $43 billion. In other words, Artesia earned $43 billion more from its exports than it spent on imports.Rate this question:
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- 13.
A trade deficit occurs when __________.
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Import exceed exports
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Foreign-aid payments exceed exports
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Imports are sold at low profits
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There is a net flow of money into a country
Correct Answer
A. Import exceed exportsExplanation
A trade deficit occurs when imports exceed exports, meaning that a country is importing more goods and services from other countries than it is exporting. This leads to a negative balance of trade, as the country is spending more on imports than it is earning from exports. This can result in a net flow of money out of the country, as the country needs to pay for the excess imports.Rate this question:
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- 14.
Measured in dollor values, the U.S. imports more ________ than any other good.
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Crude oil
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Automobiles and trucks
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Electrical machinery
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Agricultural products
Correct Answer
A. Automobiles and trucksExplanation
The correct answer is automobiles and trucks. This is because the statement is referring to the goods that the U.S. imports the most in terms of dollar values. Out of the options given, automobiles and trucks are likely to have a higher value compared to crude oil, electrical machinery, and agricultural products. Therefore, the U.S. imports more automobiles and trucks than any other good in dollar values.Rate this question:
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- 15.
A leading U.S. export is _________.
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Clothing
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Movies
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Coffee
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Petroleum
Correct Answer
A. MoviesExplanation
The given question asks for a leading U.S. export. Among the options provided, movies are a significant export from the United States. Hollywood, the American film industry, produces a large number of movies that are exported and enjoyed by audiences worldwide. The success and popularity of American movies contribute to their status as a leading export.Rate this question:
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- 16.
A balance of payments surplus means ___________.
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An overall in flow of lone from abroad
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An overall outflow of money to other countries
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That imports exceed exports
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That exports exceed imports
Correct Answer
A. An overall in flow of lone from abroadExplanation
A balance of payments surplus refers to a situation where there is an overall inflow of money from abroad. This means that a country is receiving more money from its exports, investments, and other financial transactions with foreign entities, compared to the amount of money it is spending on imports and other payments to foreign entities. This surplus can have positive effects on a country's economy, such as increasing its foreign exchange reserves and improving its financial position.Rate this question:
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- 17.
Allison, a U.S. citizen, travels to the Far East and spends $2000 on souvenirs. She is contributing to the _________.
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U.S. trade surplus
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U.S. balance of payments deficit
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International trade war
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Growing exchange rate
Correct Answer
A. U.S. balance of payments deficitExplanation
Allison, as a U.S. citizen, spending $2000 on souvenirs in the Far East contributes to the U.S. balance of payments deficit. The balance of payments is a record of all economic transactions between a country and the rest of the world over a specific period. When a country's citizens spend more on imports than they earn from exports, it leads to a balance of payments deficit. In this case, Allison's spending on souvenirs from the Far East increases the deficit as it adds to the overall import expenditure of the U.S.Rate this question:
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- 18.
A country’s exchange rate is based on ____________.
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The rate at which its currency can be exchanged for other currencies
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The number of foreign banks it has
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Tariffs and related trade restrictions
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The relationship between its imports and exports
Correct Answer
A. The rate at which its currency can be exchanged for other currenciesExplanation
A country's exchange rate is determined by the rate at which its currency can be exchanged for other currencies. This means that the value of a country's currency in relation to other currencies is what determines its exchange rate. The exchange rate is influenced by various factors such as supply and demand for the currency, interest rates, inflation, and economic stability.Rate this question:
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- 19.
Northumberland, a small European country, reduces the value of its currency. This reduction is known as _____________.
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Outsourcing
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Counter trade
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An exchange cut
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Devaluation
Correct Answer
A. DevaluationExplanation
When a country reduces the value of its currency, it is known as devaluation. Devaluation is a deliberate action taken by a country's government or central bank to decrease the value of its currency in relation to other currencies. This can be done to boost exports, make imports more expensive, or address trade imbalances. By reducing the value of its currency, Northumberland aims to make its exports more competitive in international markets and stimulate its economy.Rate this question:
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- 20.
Which of the following groups is likely to be hurt economically if the value of the U.S. dollar rises relative to the euro?
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American tourists visiting Europe
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European firms exporting goods to the U.S
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American farmers exporting goods to Europe
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American firms with euro dominated loans
Correct Answer
A. American farmers exporting goods to EuropeExplanation
American farmers exporting goods to Europe would likely be hurt economically if the value of the U.S. dollar rises relative to the euro. When the U.S. dollar strengthens against the euro, it becomes more expensive for European buyers to purchase goods from American farmers. This can lead to a decrease in demand for American agricultural products in Europe, resulting in lower sales and potentially lower profits for American farmers.Rate this question:
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- 21.
The price of imported goods is increased through ______________.
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Revaluation of a nation’s currency
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Devaluation of a nation’s currency
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Free trade
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The upward adjustment of a country’s exchange rate
Correct Answer
A. Devaluation of a nation’s currencyExplanation
When a nation's currency is devalued, it means that its value decreases compared to other currencies. This makes imported goods more expensive because it takes more of the nation's currency to purchase the same amount of foreign currency needed to buy those goods. Therefore, devaluation of a nation's currency increases the price of imported goods.Rate this question:
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- 22.
A country has a good chance of selling more of its goods abroad if it _________.
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Reevaluates its currency
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Sends more tourists abroad
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Devalues its currency
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Sets high tariffs on imported goods
Correct Answer
A. Devalues its currencyExplanation
Devaluing a country's currency makes its goods cheaper relative to other countries, which can increase the country's competitiveness in the international market. This can lead to an increase in exports as foreign buyers find the goods more affordable.Rate this question:
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- 23.
Assume the value of the U.S. dollar falls relative to the Japanese yen. Which of the following would benefit?
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U.S. visitors to Japan
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U.S. firms with yen denominated loans
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Japanese exporters
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Japanese visitors to the U.S.
Correct Answer
A. Japanese visitors to the U.S.Explanation
When the value of the U.S. dollar falls relative to the Japanese yen, it means that the yen becomes stronger compared to the dollar. This means that Japanese visitors to the U.S. would benefit because their yen can now buy more U.S. dollars, making their purchases and expenses in the U.S. relatively cheaper.Rate this question:
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- 24.
All of the following are social and cultural barriers EXCEPT
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Language
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Gift-giving traditions
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Religious attitudes
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Currency shifts
Correct Answer
A. Currency shiftsExplanation
Social and cultural barriers refer to factors that hinder communication, understanding, and interaction between different social and cultural groups. Language, gift-giving traditions, and religious attitudes are all examples of social and cultural barriers as they can create misunderstandings, conflicts, or difficulties in communication. However, currency shifts do not fall under the category of social and cultural barriers as they primarily relate to economic factors and can affect trade and financial transactions.Rate this question:
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- 25.
Measured in terms of the percentage of households, which of the following has the lowest rate of cell phone use?
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Hong Kong
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Great Britain
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United States
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Finland
Correct Answer
A. United StatesExplanation
The United States has the lowest rate of cell phone use among the given options when measured in terms of the percentage of households.Rate this question:
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Current Version
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Mar 21, 2022Quiz Edited by
ProProfs Editorial Team -
Oct 16, 2007Quiz Created by
MSalmons
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