Net-jrf Practice Mock Test #5: International Economics

10 Questions | By Georgepaily | Updated: Mar 22, 2022 | Attempts: 237

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Net-jrf Practice Mock Test #5: International Economics - Quiz

Questions and Answers

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