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Key Factors in International Trade Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. Which of the following is an example of poor working conditions that can happen due to open trade?

Question 2 2. All of the following are correct concerning open trade EXCEPT that it _____.

Question 3 3. Mikea and Troy are two countries that are involved in a trade dispute. Which of the following countries has the absolute advantage?

Question 4 4. Gaudea is a country that can produce four barrels of wine for the price of one watch. Silica can produce three barrels for the price of one watch, while Rideria can produce one barrel of wine for the price of one watch. Ademia can produce only half a barrel of wine for the price of one watch. Which of the following has the absolute advantage in producing wine?

Question 5 5. All of the following are correct concerning Mercosur EXCEPT that it:

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Question 6 6. Silesia is an imaginary country in southeast Europe. It wants the disparity in labor costs there and in its neighbor, Dalmatia, to disappear. Based on the school of economic integration, they need to _____.

Question 7 7. Which of the following theories places its focus on innovation and research and development?

Question 8 8. Which of the following is an assumption of the classical theory of economic growth?

Question 9 9. Why is a command system problematic for the entry of foreign capital?

Question 10 10. Which of the following is an example of a physical barrier to trade?

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Question 11 11. The country of Timore has a far lower opportunity cost in the production of hard drives in comparison to its neighbors. This is an example of a(n) _____.

Question 12 12. Tetovia is a small country in central Europe. It can produce either wine at a cost of $65 and revenue of $110 per unit or watches that cost $150 and generate $215 profit per unit. What is the opportunity cost of producing wines?

Question 13 13. All of the following are reasons why free trade enhances comparative advantages EXCEPT _____.

Question 14 14. Why has NAFTA caused decreased labor wages?

Question 15 15. Which of the following is an example of a trade deficit?

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Question 16 16. Why does Saudi Arabia have a large trade surplus?

Question 17 17. Why did the U.S. trade deficit start to grow in the 1990s?

Question 18 18. What is one con of NAFTA?

Question 19 19. What are the three main economic growth theories?

Question 20 20. What does it mean for a nation to have an absolute advantage in the production of a good?

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Question 21 21. If Sally can produce 1 term paper or 4 cookies in one hour, and Adam can produce 2 term papers or 1 cookie in the same amount of time, which of these statements is true?

Question 22 22. Colombia produces the best and lowest cost coffee in the world. This gives Colombia a _____ over other nations.

Question 23 23. Which of the following is the general argument in support of economic integration?

Question 24 24. How is a market system different from a command system?

Question 25 25. Why does Saudi Arabia have a large trade surplus?

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Question 26 26. What are tariffs?

Question 27 27. What new resource does the New Growth Theory include to explain how capital and labor do not experience diminishing marginal returns?

Question 28 28. The table here shows the labor hours necessary to produce one unit of two goods, salmon and coconut creme pies, in two countries. If labor is the only input used, which of the following statements is true?

Question 29 29. Which of the following are problems that all economies face?

Question 30 30. Which of the following is NOT a way for a country to be successful at international trade?

Key Factors in International Trade Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

Business 120: International Business  /  Business Courses
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