This quiz works best with JavaScript enabled. Home > International > Trade > Trade Exchange And Interdependence – Quiz 15 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Trade Exchange And Interdependence Quiz 15 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. President Trump enacted tariff barriers against China and a lot of people worried that China might retaliate and enact the same tariff barriers. This event is a ..... A) Trade war. B) Misallocation of resources. C) A threat to national security. D) None of above. Show Answer Correct Answer: A) Trade war. 2. Which of the following is part of the arguments about trade against? A) The protection of infant industries. B) The anti-dumping and unfair competition. C) The national security. D) A misallocation of resources. Show Answer Correct Answer: D) A misallocation of resources. 3. Infant industries can be helped in the world market by giving those industries a A) Subsidy. B) Quota. C) Embargo. D) Tariff. Show Answer Correct Answer: A) Subsidy. 4. Which is NOT a reason why people trade? To ..... A) Earn valuable foreign exchange. B) Obtain goods they cannot grow or produce. C) Develop healthy relationships with countries. D) Create trade barriers with countries. Show Answer Correct Answer: D) Create trade barriers with countries. 5. Choose the answer that best completes this sentence. People trade ..... trading allows them to get what they need. A) So. B) Because. C) But. D) None of above. Show Answer Correct Answer: B) Because. 6. There are ..... methods of payment in international trade. A) Five. B) Six. C) Seven. D) None of above. Show Answer Correct Answer: C) Seven. 7. What were the two most important items that traveled from the Americas to other countries? A) Corn and potatoes. B) Tomatoes and bananas. C) Beans and squash. D) Tobacco and pineapples. Show Answer Correct Answer: A) Corn and potatoes. 8. The opposite of a ..... exchange rate is a ..... exchange rate. A) Floating, foreign. B) Foreign, flexible. C) Flexible, floating. D) Fixed, floating. Show Answer Correct Answer: D) Fixed, floating. 9. In which countries do buyers and sellers usually come to agreement on prices in order to trade? A) Russia and Germany. B) Russia and United Kingdom. C) Germany and United Kingdom. D) United Kingdom and United States. Show Answer Correct Answer: D) United Kingdom and United States. 10. When the US$ exchange rate falls it will usually A) Help to reduce a US trade deficit. B) Increase the foreign price of US exports. C) Reduce the price of US imports. D) Reduce US inflation. Show Answer Correct Answer: A) Help to reduce a US trade deficit. 11. An agreement among the United States, Canada and Mexico designed to remove tariff barriers between the three countries. A) NAFTA. B) ASEAN. C) EU. D) None of above. Show Answer Correct Answer: A) NAFTA. 12. A tariff is a tax on trade, if a country has a tariff, what happens to the demand and supply?. A) Decreases demand, decreases supply. B) Increase demand, increase supply. C) Decrease demand, increase supply. D) Increase demand, decrease suppy. Show Answer Correct Answer: A) Decreases demand, decreases supply. 13. Which of the following items was not exported prior to independence? A) Cotton textiles. B) Tea. C) Jute. D) Engineering goods. Show Answer Correct Answer: D) Engineering goods. 14. Why is trade important? A) It provides employment. B) It raises living standards. C) It enables consumers to enjoy a greater variety of goods. D) All answers are correct. Show Answer Correct Answer: D) All answers are correct. 15. The nominal exchange rate at which a given basket of goods and services would cost the same in each country describes A) Appreciation. B) Depreciation. C) Decreases. D) ?????. Show Answer Correct Answer: D) ?????. 16. Which of the following instrument of trade protection directly raises the price of the commodity in the domestic economy? A) Import tariff. B) Export subsidy. C) Import substitution. D) Import liberalisation. Show Answer Correct Answer: A) Import tariff. 17. This is an efficient way to work, and the cost of items produced is lower. A) Specialization. B) Voluntary Trade. C) Currency. D) Currency Exchange. Show Answer Correct Answer: A) Specialization. 18. If a nation chooses to specialize and trade, which of the following situations could be expected to occur? A) Lower prices. B) Fewer domestic jobs. C) Decreased resource availability. D) Decreased dependence on other nations. Show Answer Correct Answer: A) Lower prices. 19. Government policies that restrict or stop the flow of goods and services among countries. A) Trade. B) Shortage. C) Trade Barrier. D) Scarcity. Show Answer Correct Answer: C) Trade Barrier. 20. Another term for a fall in the exchange rate is ..... A) Appreciation. B) Inflation. C) Depreciation. D) Deflation. Show Answer Correct Answer: C) Depreciation. ← PreviousNext →Related QuizzesInternational QuizzesTrade Exchange And Interdependence Quiz 1Trade Exchange And Interdependence Quiz 2Trade Exchange And Interdependence Quiz 3Trade 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