Net-jrf Practice Mock Test #5: International Economics
- 1.A primary reason why nations conduct international trade is because:
- A.
Some nations prefer to produce one thing while others produce other things
- B.
Resources are not equally distributed among all trading nations
- C.
Trade enhances opportunities to accumulate profits
- D.
Interest rates are not identical in all trading nations
- 2.The main advantage of specialization results from:
- A.
Economies of large-scale production
- B.
The specializing country behaving as a monopoly
- C.
Smaller production runs resulting in lower unit costs
- D.
High wages paid to foreign workers
- 3.International trade in goods and services is sometimes used as a substitute for all of the following except:
- A.
International movements of capital
- B.
International movements of labor
- C.
Domestic production of the same goods and services
- D.
Domestic production of different goods and services
- 4.If a nation has an open economy, it means that the nation:
- A.
Allows private ownership of capital
- B.
Has flexible exchange rates
- C.
Has fixed exchange rates
- D.
Conducts trade with other countries
- 5.International trade forces domestic firms to become more competitive in terms of
- A.
Introduction of new products
- B.
Product design and quality
- C.
Product price
- D.
All of the above
- 6.The movement to free international trade is most likely to generate short-term unemployment in which industries?
- A.
Industries in which there are neither imports nor exports
- B.
Import-competing industries
- C.
Industries that sell to domestic and foreign buyers
- D.
Industries that sell to only foreign buyers
- 7.International trade is based on the idea that:
- A.
Exports should exceed imports
- B.
Imports should exceed exports
- C.
Resources are more mobile internationally than are goods
- D.
Resources are less mobile internationally than are goods
- 8.Arguments for free trade are sometimes disregarded by politicians because:
- A.
Maximizing domestic efficiency is not considered important
- B.
Maximizing consumer welfare may not be a chief priority
- C.
There exist sound economic reasons for keeping one’s economy isolated from other economies
- D.
Economists tend to favor highly protected domestic markets
- 9.How much physical output a worker producers in an hour’s work depends on:
- A.
The worker’s motivation and skill
- B.
The technology, plant, and equipment in use
- C.
How easy the product is to manufacture
- D.
All of the above
- 10.Increased foreign competition tends to:
- A.
Intensify inflationary pressures at home
- B.
Induce falling output per worker-hour for domestic workers
- C.
Place constraints on the wages of domestic workers
- D.
Increase profits of domestic import-competing industries
Questions: 10 | Attempts: 20216 | Last updated: Jun 15, 2020
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