This quiz works best with JavaScript enabled. Home > Economics > International > Trade > Trade Exchange And Interdependence – Quiz 3 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Trade Exchange And Interdependence Quiz 3 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. International trade makes sense when it is based on ..... A) High gold value. B) Exchange rates. C) Comparative advantage. D) Excess production. Show Answer Correct Answer: C) Comparative advantage. 2. In 1962, the United States prohibited all imports and exports to and from Cuba. This is an example of a/an: A) Embargo. B) Veto. C) Tariff. D) Quota. Show Answer Correct Answer: A) Embargo. 3. Which of the following is most likely to cause an increase in the international value of the dollar? A) Higher U.S. interest rates. B) Higher real interest rates abroad. C) Expansionary monetary policy in the U.S. D) Lower U.S. government spending. Show Answer Correct Answer: A) Higher U.S. interest rates. 4. When a nation imports more than they export, that nation has a A) Free trade agreement. B) Trade deficit. C) Trade free economic system. D) Trade surplus. Show Answer Correct Answer: B) Trade deficit. 5. When the U.S. dollar buys more Japanese yen, the U.S. dollar has:I become more valuable in terms of the yen II. appreciated III. depreciated A) I only. B) II only. C) III only. D) I and II only. Show Answer Correct Answer: C) III only. 6. Trade in which both partners freely agree to and benefit from the exchange of goods/services. A) Currency Exchange. B) Trade Barrier. C) Voluntary Trade. D) Specialization. Show Answer Correct Answer: C) Voluntary Trade. 7. A tax on imported goods. A) Import. B) Export. C) Tariff. D) None of above. Show Answer Correct Answer: C) Tariff. 8. African slaves were used to work on the ..... and in the ..... A) Store, home. B) Mines, plantations. C) Mortality, horrible. D) Plantations, mines. Show Answer Correct Answer: D) Plantations, mines. 9. Which of the following statements best describes trade between two nations? A) It is mutually beneficial. B) It is legally required. C) It avoids specialization. D) It involves low cost for both nations. Show Answer Correct Answer: A) It is mutually beneficial. 10. The ability to produce a good or service more efficiently than another country can produce the same good or service A) Absolute advantage. B) Dependent. C) Specialization. D) Comparative advantage. Show Answer Correct Answer: A) Absolute advantage. 11. What were some of the things that Europeans brought over to the Americas? A) Butterflies and rainbows. B) Diseases, animals, plants, and crops. C) Boats, sails, and wood. D) Philosophical texts, philosophers, and Humanism. Show Answer Correct Answer: B) Diseases, animals, plants, and crops. 12. Because countries have different ....., international trade requires a system for exchanging currencies between nations A) Methods of transportation. B) Systems of currency. C) Types of climates. D) Forms of leadership. Show Answer Correct Answer: B) Systems of currency. 13. What did the captains do to show proof of purchase? A) Cut off the slaves' ear. B) Branded them. C) Cut off their foot. D) Tied them up in chains. Show Answer Correct Answer: A) Cut off the slaves' ear. 14. What is the currency of Russia? A) Dollar. B) Euro. C) Ruble. D) Pound. Show Answer Correct Answer: C) Ruble. 15. An increase in U.S. imports will result in which of the following in foreign exchange markets? A) Increased foreign demand for U.S. dollars. B) Decreased supply of U.S. dollars. C) Increased U.S. demand for foreign currency. D) A decrease in the value of foreign currency. Show Answer Correct Answer: C) Increased U.S. demand for foreign currency. 16. Countries usually impose restrictions on free foreign trade to ..... A) Protect Domestic Consumers. B) Protect Domestic Producers. C) Protect Foreign Consumers. D) Protect Foreign Producers. Show Answer Correct Answer: B) Protect Domestic Producers. 17. Example:In 2010, China announced that it would impose an import tax on American poultry of up 105.4 percent. A) Quota. B) Tariff. C) Embargo. D) None of above. Show Answer Correct Answer: B) Tariff. 18. Devaluation of a currency will lead to which of the following? A) Appreciation of the currency. B) An increase in exports. C) Decrease in exports. D) An increase in imports. Show Answer Correct Answer: B) An increase in exports. 19. A condition by which different things rely on each other for support A) Outsourcing. B) Interdependent. C) Multinational corporation. D) Globalization. Show Answer Correct Answer: B) Interdependent. 20. What is a special benefit experienced by CARICOM countries when they trade with each other? They ..... A) Wait a long time for goods to be processed. B) Develop disagreements which affect trade. C) Pay no taxes or pay at a special rate. D) Pay increased taxes. Show Answer Correct Answer: C) Pay no taxes or pay at a special rate. 21. Many Middle East countries export oil, but import or buy items such as ..... A) Food, medicine, and raw materials. B) Oil, uranium, and coal. C) Cobalt, gold, and silver. D) Iron ore, oil, and uranium. Show Answer Correct Answer: A) Food, medicine, and raw materials. 22. Land, human capital, capital goods, and entrepreneurship together make up: A) Factors of production. B) Specialization. C) Infrastructure. D) Economy. Show Answer Correct Answer: A) Factors of production. 23. Which of these is an example of involuntary trade? A) Paying taxes. B) Paying for a taxi. C) None of these options. D) Trading for sugar beets. Show Answer Correct Answer: A) Paying taxes. 24. A custom established by an authority or government A) Tariff. B) Subsidy. C) Quota. D) Standard. Show Answer Correct Answer: D) Standard. 25. Ricardian Model is based on differences in A) Technology. B) Resource Endowments. C) Both. D) None. Show Answer Correct Answer: A) Technology. 26. This term is used when nations produced different goods and services based on the resources that they have. A) Trade Barrier. B) Specialization. C) Embargo. D) Bartering. Show Answer Correct Answer: B) Specialization. 27. Which of these is an example of service? A) Fixing your computer. B) Nike shoes. C) Bushel of apples. D) Smartphone. Show Answer Correct Answer: A) Fixing your computer. 28. Inflation often causes tha currency of the country with the highest rate to ..... A) Depreciate. B) Appreciate. C) Peg. D) None of the above. Show Answer Correct Answer: A) Depreciate. 29. When did the Columbian Exchange take place? A) Before AD Rome. B) During the European Dark Ages. C) After 1492. D) After WW2. Show Answer Correct Answer: C) After 1492. 30. What is the name we give to any exchange of one thing for something else? A) Service. B) Money. C) Trade. D) None of above. Show Answer Correct Answer: C) Trade. ← PreviousNext →Related QuizzesInternational QuizzesEconomics QuizzesTrade Exchange And Interdependence Quiz 1Trade Exchange And Interdependence Quiz 2Trade Exchange And Interdependence Quiz 4Trade Exchange And Interdependence Quiz 5Trade Exchange And Interdependence Quiz 6Trade Exchange And Interdependence Quiz 7Trade Exchange And Interdependence Quiz 8Trade Exchange And Interdependence Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books