International Economics Quiz Questions & Answers
International Economics Quiz
9 multiple choice quiz questions with answers
Test your knowledge on International Economics, Trade Theory, and Trade Policies with this quiz. Explore the impact of international differences in productive resources, the economic theory of international trade, and the international institutions affecting them. Discover the theory of comparative...
Test your knowledge on International Economics, Trade Theory, and Trade Policies with this quiz. Explore the impact of international differences in productive resources, the economic theory of international trade, and the international institutions affecting them. Discover the theory of comparative advantage, modern trade analysis, and the net benefits of trade. Learn about Samuelson's factor price equalisation theorem and the concept of infant industries. Evaluate the benefits of globalization, international migration, and the risks involved in international finance. This quiz is perfect for anyone interested
-
1. What is the main difference between international trade theory and the rest of economic theory?
- International trade theory assumes limited international mobility of capital and labor
-
2. What is the motive for the development of trade theory?
- To determine the consequences of government restrictions on international trade
-
3. What is the theory of comparative advantage?
- A logical explanation of international trade based on comparative advantages
-
4. What is the Heckscher-Ohlin theorem?
- A theory that depends upon the assumptions of no international differences of technology, productivity, or consumer preferences
-
5. What is Samuelson's factor price equalisation theorem?
- Indicates that, if productivity were the same in both countries, the effect of trade would be to bring about equality in wage rates
-
6. What is the term 'infant industry' used to denote?
- A new industry which has prospects of gaining comparative advantage in the long-term, but which would be unable to survive in the face of competition from imported goods
-
7. What is the IMF?
- An organization that offers loans to member countries to overcome balance of payments problems
-
8. What is globalization?
- The move toward complete mobility of capital and labor and their products, reducing politically imposed barriers and costs of transport and communication
-
9. What is the main argument of economists who oppose globalization?
- It has led to income inequalities and to damaging losses of social capital in parent countries and social stresses resulting from immigration in receiving countries
The Ultimate Quiz on Comparative Advantage
9 multiple choice quiz questions with answers
Test your knowledge on the theory of comparative advantage with this quiz! From understanding the basics of comparative advantage to the benefits of international trade, this quiz covers the key concepts and criticisms of the theory. See if you can answer questions on David Ricardo's classical theor...
Test your knowledge on the theory of comparative advantage with this quiz! From understanding the basics of comparative advantage to the benefits of international trade, this quiz covers the key concepts and criticisms of the theory. See if you can answer questions on David Ricardo's classical theory, the relationship between comparative advantage and specialization, and the role of empirical works in testing predictions of the model. Whether you are a student of economics or simply interested in international trade, this quiz is a great way to test your understanding of the theory
-
1. What is comparative advantage?
- The ability to produce a good at a lower relative opportunity cost or autarky price
-
2. Who first alluded to the concept of absolute advantage and comparative advantage, respectively?
- Adam Smith and Robert Torrens
-
3. What does the Ricardian model assume about labor mobility?
- Labor is mobile domestically but not internationally
-
4. What determines the relative price of cloth and wine in each country?
- The labor cost of producing each good in each country
-
5. What are the terms of trade?
- The rate at which one good could be traded for another
-
6. What did Haberler's reformulation of comparative advantage do?
- Provided a modern opportunity cost formulation and revolutionized the theory of international trade
-
7. What have critics of comparative advantage underlined?
- Its theoretical implications hardly hold when applied to individual commodities or pairs of commodities in a world of multiple commodities
-
8. What do structural estimation approaches do?
- Test predictions of a particular model
-
9. What did Dosi et al. (1988) suggest about international trade in manufactured goods?
- It is largely driven by differences in national technological competencies
Exchange Across International Borders
9 multiple choice quiz questions with answers
Test your knowledge on the complexities of international trade with our quiz on Exchange Across International Borders. From factors that influence trade to the top traded commodities, this quiz will challenge you on your understanding of the global economy. Keywords: international trade, GDP, govern...
Test your knowledge on the complexities of international trade with our quiz on Exchange Across International Borders. From factors that influence trade to the top traded commodities, this quiz will challenge you on your understanding of the global economy. Keywords: international trade, GDP, government policies, World Trade Organization, statistics, tariffs, commodities, globalization.
-
1. What is the definition of international trade?
- The exchange of goods and services across international borders
-
2. Which of the following factors can influence international trade?
- Government policies
-
3. What is the role of the World Trade Organization in international trade?
- To promote international trade
-
4. Why is international trade more costly than domestic trade?
- Because of additional costs such as tariffs and non-tariff barriers
-
5. What is the top traded commodity by value for exports?
- Crude oil
-
6. What are the impacts of advanced technology on international trade systems?
- Mixed impact
-
7. What are the disadvantages of international trade for local production?
- Environmental impact
-
8. What is the focus of international trade?
- Trade in goods and services only
-
9. What do statistical services of intergovernmental and supranational organizations and governmental statistical agencies publish?
- Official statistics on international trade
Test Your Knowledge on Trade Barriers and Their Impact on Global Trade
9 multiple choice quiz questions with answers
Are you familiar with the different types of trade barriers and their impact on international trade? Test your knowledge with our quiz on Restrictions Limiting International Trade. From tariffs to non-tariff barriers, agricultural goods to manufactured goods, this quiz covers it all. Find out how tr...
Are you familiar with the different types of trade barriers and their impact on international trade? Test your knowledge with our quiz on Restrictions Limiting International Trade. From tariffs to non-tariff barriers, agricultural goods to manufactured goods, this quiz covers it all. Find out how trade barriers affect small firms, developing countries, and customers, and learn about the latest trade deals addressing these issues. Sharpen your understanding of global trade by taking this informative quiz.
-
1. What are trade barriers?
- Government-induced restrictions on international trade that raise the price or availability of traded products.
-
2. What is the principle behind most trade barriers?
- Imposing some sort of cost (money, time, bureaucracy, quota) on trade.
-
3. Which countries have fewer trade barriers?
- High-income countries
-
4. Which industries are most commonly protected by trade barriers?
- Agriculture, textiles, apparel, and footwear
-
5. What has happened to tariffs in the last 20 years?
- They have declined
-
6. What is the impact of trade barriers on the developing world?
- Limiting access to markets and lowering prices for crops
-
7. What is the effect of trade barriers on product choice and prices?
- Limited choice of products and higher prices
-
8. Which firms are most affected by trade barriers?
- Small firms
-
9. What do modern trade deals tackle?
- Non-tariff barriers to trade, such as different standards and regulations, in addition to tariffs.
Exchange Rates Quiz
9 multiple choice quiz questions with answers
Test your knowledge on exchange rates with our detailed overview quiz! Learn about the basics of exchange rates, including how they are determined and the different exchange rate regimes. Explore the concept of the real exchange rate, its effects on a country's balance of payments, and the debate su...
Test your knowledge on exchange rates with our detailed overview quiz! Learn about the basics of exchange rates, including how they are determined and the different exchange rate regimes. Explore the concept of the real exchange rate, its effects on a country's balance of payments, and the debate surrounding the equilibrium RER. Discover popular approaches to finding alternative equilibrium RER measures, such as the Fundamental Equilibrium Exchange Rate and the Behavioural Equilibrium Exchange Rate. Finally, learn about different models and theories used to explain exchange
-
1. What is an exchange rate?
- The rate at which one currency will be exchanged for another currency
-
2. What is the retail currency exchange market?
- A market that involves different buying and selling rates quoted by money dealers
-
3. What is the real exchange rate (RER)?
- The purchasing power of a currency relative to another at current exchange rates and prices
-
4. What is the Fundamental Equilibrium Exchange Rate (FEER)?
- A RER consistent with macroeconomic balance, characterized by internal and external balances achieved simultaneously
-
5. What is the Balance of Payments Model?
- Foreign exchange rates are at an equilibrium level if they produce a stable current account balance
-
6. What is the Asset Market Model?
- Currencies are asset prices traded in an efficient financial market
-
7. What is the Uncovered Interest Rate Parity Model (UIRP)?
- An appreciation or depreciation of one currency against another currency might be neutralized by a change in the interest rate differential
-
8. What is a parallel exchange rate?
- An unofficial exchange rate that responds to excess demand for foreign currency at the official exchange rate
-
9. What is exchange rate manipulation?
- When a country controls the market for its currency to keep its value low
Test Your Knowledge on Trade Balances and Their Impact on Global Prosperity!
9 multiple choice quiz questions with answers
This quiz will test your knowledge on the key points related to the difference between the monetary value of a nation's exports and imports, also known as the balance of trade. You will learn about the different types of trade balances, factors that can affect them, and how they can differ across th...
This quiz will test your knowledge on the key points related to the difference between the monetary value of a nation's exports and imports, also known as the balance of trade. You will learn about the different types of trade balances, factors that can affect them, and how they can differ across the business cycle. You will also gain insights into the trade deficits and surpluses of various countries and understand the debate surrounding their impact on global prosperity. This quiz is perfect for anyone interested in international trade and economics
-
1. What is the balance of trade?
- The difference between the monetary value of a nation's exports and imports
-
2. What is a trade surplus?
- When a country exports a greater value than it imports
-
3. What is a trade deficit?
- When a country imports a greater value than it exports
-
4. Why is measuring the balance of trade problematic?
- Due to problems with recording and collecting data
-
5. What are some factors that can affect the balance of trade?
- Exchange rates, tariffs, and quotas
-
6. What is the difference between the monetary balance of trade and the physical balance of trade?
- Monetary balance measures the value of exports and imports, while physical balance measures the quantity of exports and imports
-
7. What is the current account?
- The sum of the balance of trade, net income from abroad, and net current transfers
-
8. Which economies typically run trade surpluses?
- Economies that have savings surpluses, such as Japan and Germany
-
9. What is the view of trade experts and economists on bilateral trade deficits?
- The notion that bilateral trade deficits are bad in and of themselves is overwhelmingly rejected
Foreign Direct Investment Quiz
9 multiple choice quiz questions with answers
Test your knowledge about Foreign Direct Investment with this informative quiz! Learn about the basics of FDI, including its types, determinants, and Hymer's framework. Find out which countries are the top FDI destinations and discover the importance of democratic institutions in attracting FDI. Thi...
Test your knowledge about Foreign Direct Investment with this informative quiz! Learn about the basics of FDI, including its types, determinants, and Hymer's framework. Find out which countries are the top FDI destinations and discover the importance of democratic institutions in attracting FDI. This quiz is perfect for students, business professionals, and anyone interested in understanding the world of international investment.
-
1. What is foreign direct investment (FDI)?
- The purchase of an asset in one country by an entity based in another country
-
2. What distinguishes FDI from foreign portfolio investment?
- Direct control
-
3. What are the main determinants of FDI?
- Growth prospects of the economy of the country
-
4. What is the difference between inorganic and organic FDI?
- Inorganic FDI is made by buying a company in the target country, while organic FDI is made by expanding the operations of an existing business in that country
-
5. What is Hymer's framework on FDI?
- A theory that explains why FDI occurs
-
6. What is the difference between capital investment and direct investment?
- Direct investment allows firms to obtain a greater level of control than portfolio investment
-
7. What are the types of FDI investments?
- Based on the perspective of the investor/source country and host/destination country
-
8. Which country was the largest foreign direct investment recipient in Europe in 2020?
- France
-
9. Which country emerged as the top FDI destination in 2015, surpassing China and the US?
- India
