Quiz  /  International Trade and Finance Class 12 MCQ Questions With...

  • 1. 
    Underdeveloped nations tend to trade what type of goods

  • Low skill products
  • High tech goods
  • finished products
  • High skill products

  • 2. 
    If nations limit trade in of clothing who will benefit?

  • Domestic Consumers of clothing
  • Domestic producers of clothing
  • Foreign Producers of clothing
  • department stores who sell clothing

  • 3. 
    Tariffs and Quotas can benefit nations imposing them by...

  • Raising revenue
  • increasing variety of goods
  • lowering prices
  • increasing consumption

  • 4. 
    Who will be hurt by a tariff on medicine coming into the US.

  • US medical companies
  • US government revenue
  • Sick people in US

  • 5. 
    When determining comparative advantage one must determine

  • Opportunity cost
  • Specialization
  • Absolute Advantage
  • Embargos

  • 6. 
    This is the most restrictive of the trade restrictions a nation can use to close off all importation of a product.

  • tariff
  • quota
  • subsidy
  • embargo

  • 7. 
    Not trading with nations who create products using child labor is used in the argument for

  • Domestic Jobs
  • National Defense
  • Human Rights
  • Environment

  • 8. 
    Developed nations have all of the following except

  • better education
  • high levels of technology
  • better health
  • higher populations

  • 9. 
    If I am better at all types of production, I have the ______ in all forms of production.

  • Comparative advantage
  • Specialization
  • Absolute advantage
  • developed nation

  • 10. 
    A trade agreement between 27 countries of with the same currency and open trade between those nations.

  • NAFTA
  • EU
  • WTO
  • ABC

  • 11. 
    Which of the following is not a benefit of trade between nations?

  • More stuff
  • Better stuff
  • cheaper stuff
  • similar stuff

  • 12. 
    What is the effect of a tariff on Producer Surplus?

  • Increases
  • Decreases
  • Unchanged
  • Disappears

  • 13. 
    What are some negatives of globalization?

  • Workers are exploited in sweatshops
  • Pollution and deforestation
  • Low wages for factory workers in Asia and Africa
  • All of the answers are correct

  • 14. 
    The development of a worldwide economy where resources flow fairly freely across borders.

  • Globalization
  • Economy
  • GDP
  • Economic Independence

  • 15. 
    A three-country trade agreement negotiated by the governments of Canada, Mexico, and the United States that took effect in 1989.

  • The UN
  • NAFTA
  • NATO
  • IMF

  • 16. 
    A policy in which a nation does not try to limit imports or exports by enacting tariffs (taxes on imports) or subsidies (money to assist an industry so prices can remain low).

  • Free Trade
  • Trade War
  • Goods and Services
  • Supply and Demand

  • 17. 
    When people trade how do both sides benefit?

  • Countries can focus on producing specific goods from their natural resources instead of trying to create everything they need
  • Countries can take advantage of each other making the international market more secure
  • Countries are able to learn the weaknesses of other countries and exploit those for natural resources
  • Countries are able to enter other countries with spies and foreign agents to undermine governments.

  • 18. 
    What is globalization?

  • The increased flow of trade, people, technology, and culture among countries.
  • The decreased flow of trade, people, technology, and culture among countries.
  • The creation of one global empire and government under a single super power.
  • The creation of a global cellular network to use phones internationally.

  • 19. 
    The exchange of goods and services by sale or barter driven by the need for resources.

  • Fair Trade
  • Globalization
  • Trade
  • Standard of Living

  • 20. 
    Bringing goods in from another country to sell.

  • import
  • export

  • 21. 
    WHY ARE TARIFFS USED?

  • TO PROTECT DOMESTIC JOBS AND INDUSTRIES
  • TO RAISE REVENUE FOR GOVERNMENT
  • TO PROTECT STRATEGIC INDUSTRIES
  • ALL OF THE ABOVE

  • 22. 
    Who has the power to create tariffs?

  • State governments
  • Federal government
  • Store owners
  • Factory owners

  • 23. 
    The Trump administration renegotiated NAFTA with Mexico and Canada. President Trump's renegotiated free trade agreement is called

  • YMCA
  • USMCA
  • NAFTA 2.0
  • NASCAR

  • 24. 
    Who typically ends up paying tariffs?

  • Importers and/or consumers
  • The International Monetary Fund
  • Congress
  • Exporters

  • 25. 
    Which of the following was instrumental in creating the global economy that exists today?

  • The use of high taxes for imports and exports
  • Improvements in technology such as the Internet
  • The creation of one form of currency (money) used to trade
  • The success of the Communist governments in guiding trade

  • 26. 
    When the economy of two countries depend on each other, it's called:

  • economic interdependence
  • multinational cooperation
  • isolationism
  • outsourcing

  • 27. 
    What would be one consequence of a prolonged decline in the value of the euro relative to the U.S. dollar?

  • European exports to the United States would become less expensive.
  • U.S. exports to Europe would become cheaper.
  • European imports from the United States would increase.
  • U.S. imports from Europe would become more expensive.U.S. imports from Europe would become more expensive.

  • 28. 
    WHAT ARE THE NEGATIVE IMPACT OF TARIFFS

  • LOWER PRICES
  • MORE CHOICE
  • LACK OF DOMESTIC INNOVATION
  • GREATER CHOICE

  • 29. 
    President Trump has enacted tariffs against China and China has retaliated with tariffs of its own against the United States. This type of situation is known as...

  • a trade war
  • free trade
  • national security
  • Gross Domestic Product (GDP)

  • 30. 
    WHY WOULD A TARIFF EFFECT INNOVATION?

  • DOMESTIC FIRMS OVER CONDFIDENCE
  • LACK OF COMPETITION
  • BOTH
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