Quiz Related To International Trade

5 Questions | Total Attempts: 406

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International Trade Quizzes & Trivia

Chapter 1


Questions and Answers
  • 1. 
    International trade is logically associated with which assumption?
    • A. 

      Resources are less mobile internationally than domestically

    • B. 

      Resources are more mobile internationally than are goods

    • C. 

      Imports should exceed exports

    • D. 

      Exports should exceed imports

    • E. 

      None of the above

  • 2. 
    Arguments for free trade are sometimes disregarded by the political process because
    • A. 

      Maximizing consumer welfare may not be a chief priority for politicians

    • B. 

      Economists tend to favor highly protected domestic markets.

    • C. 

      The gains of trade are of paramount concern to typical consumers

    • D. 

      Economists have a universally accepted decisive power over the political decision mechanism

  • 3. 
    ____________ is the ability of a firm to design, produce, and market goods and services that are better and/or cheaper than those of other firms
    • A. 

      Competitiveness

    • B. 

      Protectionism

    • C. 

      Comparative advantage

    • D. 

      Interventionism

  • 4. 
    One likely effect of moving to free international trade is that
    • A. 

      A monopoly in the home market becomes an oligopoly in the world market

    • B. 

      An oligopoly in the home market becomes a monopoly in the world market

    • C. 

      A purely competitive firm becomes an oligopolist

    • D. 

      A purely competitive firm becomes a monopolist

  • 5. 
    A closed economy is one in which
    • A. 

      The home economy is isolated from foreign trade or investment

    • B. 

      Domestic firms invest in foreign countries

    • C. 

      Imports exactly equal exports

    • D. 

      All of the above

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