International Economics Mock Test

Refer to International Economics Mock Test below. Students of BA Economics International Economics can do the below online test and refer to the full list of free International Economics BA Economics Mock Online Test provided below. These online Mock tests for BA Economics International Economics have been designed based on the pattern of questions expected to come in the upcoming examinations and the latest syllabus. This International Economics Mock Test is a free online mock practice test based on the important multiple choice questions (MCQs) from your BA Economics syllabus. The test for the topic International Economics includes a series of carefully selected questions with four options each as you can see below. Whether you’re a first-year, second-year, or final-year BA Economics student, this test will help you revise key questions that are likely to appear in your semester exams or university assessments.

Online Mock Test for BA Economics International Economics

In the Mock test for BA Economics International Economics you can see the list of questions below with options out of which you have to select one correct answer and after completing the test you can check your answers and score. This mock test will help students to check understanding of all topics in International Economics. Mock tests for International Economics are a proven way to boost BA Economics exam performance. The more you practice, the more confident you become in your exams. Our BA Economics: International Economics Online Mock Test will help you understand the subject better and prepare for exams more effectively

BA Economics International Economics Mock Test

1. Which of the following is NOT true?

Economists believe that international trade is beneficial for all countries involved in it, in most cases. Small countries depend more on trade than large countries. U.S. imports exceed U.S. exports. Imports cannot exceed exports for an extended period of time.

2. If a very small country trades with a very large country according to the Ricardianmodel, then

The small country will enjoy gains from trade. The small country will suffer a decrease in economic welfare. The large country will suffer a decrease in economic welfare. The large country will enjoy gains from trade.

3. Which of the following theories was proposed by David Ricardo?

Theory of differences in factor endowments. Theory of random components determining the pattern of trade. Theory of differences in climate and resources. Theory of differences in labor productivity.

4. The trade model of the Swedish economists Heckscher and Ohlin maintains that:

The division of labor is limited by the size of the world market Absolute advantage determines the distribution of the gains from trade Comparative advantage determines the distribution of the gains from trade. A country exports goods for which its resource endowments are most suited.

5. What is the effect of a currency devaluation under fixed exchange rates in the short run?

A decline in foreign reserves. An increase in exports. A decline in output. An increase in imports.

6. A primary reason why nations conduct international trade is because:

Trade enhances opportunities to accumulate profits Interest rates are not identical in all trading nations Some nations prefer to produce one thing while others produce another Resources are not equally distributed to all trading nations

7. Why do some people argue against free international trade?

The U.S. is a large country and therefore does not gain from international trade. Trade alters the distribution of income between broad groups of people. There is disagreement on whether or not there are gains from trade. Free trade threatens our country's security.

8. A nation engaging in trade according to the Ricardian model will find its consumption bundle

Inside its trade-partner's production possibilities frontier. On its production possibilities frontier. Inside its production possibilities frontier. Outside its production possibilities frontier.

9. A main advantage of specialization results from:

Smaller production runs resulting in lower unit costs. High wages paid to foreign workers The specializing country behaving as a monopoly Economics of large scale production

10. Reducing a current account deficit requires a country to:

Decrease the government's deficit and decrease private investment relative to saving Increase the government's deficit and increase private investment relative to saving Decrease the government's deficit increase private investment relative to saving Increase the government's deficit and decrease private investment relative to saving

11. According to the factor endowment model of Heckscher and Ohlin, countries heavil y endowed with land will:

Devote excessive amounts of resources to agricultural production. Import products that are land-intensive. Export products that are land-intensive. Devote insufficient amounts of resources to agricultural production

12. In the Ricardian model, if a country's trade is restricted, this will cause all except which?

Limit specialization and the division of labor. Cause nations to produce inside their production possibilities curves May result in a country producing some of the product of its comparative Disadvantage Reduce the volume of trade and the gains from trade

13. According to the Heckscher-Ohlin model

The gainers from trade outnumber the losers from trade The scarce factor necessarily gains from trade Everyone automatically gains from trade none of the options

14. What are most trade policies driven by?

Disagreements on the prices of major commodities. Conflicts of interest between nations. Disagreements regarding who should produce certain products. Conflicts of interest within nations.

15. International trade forces domestic firms to become more competitive in terms of:

Product design and quality The introduction of new products Product price all of the options

16. Which of the following is international trade:

Trade between provinces Trade between countries Trade between regions none

17. Free trade is based on the principle of:

Comparative scale Comparative advantage Economies of advantage Production possibility advantage

18. Theory of comparative advantage was presented by:

Adam Smith Hicks Ricardo Arshad

19. If a nation has an open economy it means that the nation:

Has fixed exchange rates Has flexible exchange rates Conducts trade with other countries Allows private ownership of capital.

20. In 2003, the US had the largest total amount of imports from and exports to

Germany. China. Canada. Mexico.

21. Modern theory of international trade is based n the views of:

Heckcsher and Ohlin Robbins and Ricardo Adam Smith and Marshall Saleem and Kareem

22. Many countries were fixing the price of their currency in terms of gold:

During World War I. During World War II. Before World War I. After World War II.

23. Gross domestic product measures

the gross weight of products that are imported into a domestic country. the gross profits from all final goods and services produced in an economy. the total value of all final goods and services produced within an economy. the gross weight of products that are exported from a domestic country.

24. If there is a decline in output, to keep the exchange rate fixed, the central bank has to:

Purchase domestic assets. Sell foreign assets. Purchase foreign assets. Sell domestic assets.

25. How are international trade policies governed?

By the GATT. They are not governed by anyone. By the IMF. By the U.N.

26. Governments around the world tend to auction quota licenses

Seldom Often Never Always

27. If the central bank purchases assets, it will result in:

An increase in the money supply. An increase in the central bank's net worth. A decline in the central bank's net worth. A decline in the money supply.

28. Outsourcing refers to the case in which

consumers find out the source of where production occurs. a firm moves part of its business operations out of the domestic country. a firm imports into a country rather than buying products from within a domestic country. a firm exports out of a country rather than selling products within a country.

29. A(n) __________ is an example of a quota where foreigners hold quota licenses.

Export quota Embargo Auction quota Tariff quota

30. Which of the following is NOT true regarding international capital markets?

Nations can default on their debt and may not be brought to court. The volume of trade on capital markets is lower ever since the "debt crisis" of 1982. Currency fluctuations add instability. There are special regulations in many countries with respect to foreign investment.

31. Which of the following is true?

none Trade only hurts countries with lower wages. Trade necessarily hurts poorer countries. Countries that open up for trade see their wages rise over time relative to U.S. wages.

32. Domestic content legislation applied to autos would tend to:

Support wage levels of American autoworkers Lower auto prices for American autoworkers Encourage American automakers to locate production overseas Increase profits of American auto companies

33. In his empirical test of comparative advantage, Wassily Leontief found that

U.S. exports are neither labor nor capital intensive U.S. imports are labor intensive relative to U.S. exports U.S. exports are capital intensive relative to U.S. imports none of the options

34. Trade between two countries can benefit both countries if

Each country exports that good in which it has a comparative advantage. Each country has a more elastic demand for the imported goods. Each country enjoys superior terms of trade. Each country has a more elastic supply for the supplied goods.

35. The Heckscher-Ohlin model predicts all of the following except:

The volume of trade. That wages will tend to become equal in both trading countries. Which factor of production within each country will gain from trade. Which country will export which product

36. In the 2-factor, 2 good Heckscher-Ohlin model, the two countries differ in

Military capabilities Relative availabilities of factors of production Tastes Size

37. Which is NOT an advantage of international trade:

Import of defence material Dependence on foreign countries Export of surplus production Availability of cheap raw materials

38. When all of the debit or credit items in the balance of payments are combined:

Merchandise imports equal merchandise exports The total surplus or deficit equals zero Capital imports equal capital exports Services exports equal services imports

39. International dumping may involve

selling goods to foreigners at a price below the cost of production selling goods to foreigners at a price below that charged domestic consumers antidumping duties being levied on the imported, dumped goods all of the options

40. A tariff:

Reduces the volume of trade Increases the volume of trade Has no effect on volume of trade none of the options

41. The welfare effects of a quota depend to a considerable extent upon

Who has the quota license Elasticities of domestic demand and supply The size of the quota all of the options

42. Nontariff trade barriers could include all of the following except

Domestic content laws Government procurement policies Health, safety, and environmental standards Antidumping/countervailing duties applied to imports

43. In the balance of payments, the statistical discrepancy is used to:

Ensure that the sum of all debits matches the sum of all credits Obtain an accurate account of a balance-of-payments deficit Ensure that trade imports equal the value of trade exports Obtain an accurate account of a balance-of-payments surplus

44. Trade between two countries can be useful if cost ratios of goods are:

Decreasing Different Equal Undetermined

45. As a result of trade, specialization in the Ricardian model tends to be

Complete with constant costs and incomplete with increasing costs. Complete with constant costs and with increasing costs. Incomplete with constant costs and incomplete with increasing costs. Incomplete with constant costs and complete with increasing costs.

46. The Heckscher-Ohlin model assumes that _____ are identical in all trading countries

Factor endowments Technologies Both Gross domestic product and Technologies Gross domestic product

47. All of the following are credit items in the balance of payments, except:

Merchandise exports Investment inflows Private gifts to foreign residents Payments for American services to foreigners

48. According to the Heckscher-Ohlin model, the source of comparative advantage is a country's

Both Technology and Advertising.. Technology Advertising. Factor endowments

49. The Heckscher-Ohlin model differs from the Ricardian model of Comparative Advantage in that the former

Has two factors of production. Has only two products. Has two production possibility frontiers (one for each country). Has only two countries

50. All of the following are debit items in the balance of payments, except:

Foreign aid granted to other nations Capital outflows Merchandise exports Private gifts to foreigners

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BA Economics Mock online test International Economics

The above link for International Economics Mock Test will help you to check your understanding of all important concepts which have been prepared based on latest BA Economics syllabus. The free online mock tests for International Economics should be used by BA Economics students to check their understanding. We bring here the biggest collection of International Economics BA Economics MCQ Test to help you prepare properly and get highest rank in exams. Students can attempt the mock tests for BA Economics as many number of times as these mock online tests for BA Economics International Economics have been developed by our teachers after thorough review of the latest book and based on pattern of questions in upcoming exams.

How to improve your preparation with BA Economics International Economics Mock Test?

The International Economics mock online tests for BA Economics has been designed by our teachers to improve your understanding of this chapter. These online mock tests are structured so that it feels like real exam condition for students so that they can build their confidence and accuracy of answers. By daily practicing these MCQ based questions for BA Economics with answers students will be able to identify key topics to focus on and improve performance. The mock tests have been updated as per the latest NCERT book for BA Economics to help in your exam preparation.

Why choose to do International Economics Mock Test?

Daily practicing the International Economics mock tests for BA Economics has several benefits as they help to familiarize students with important concepts and effective time management skills. Each mock test for chapter International Economics given above includes a variety of questions that have been selected from Question Papers for BA Economics and cover all important topics so that you have full preparation. After completing the International Economics Mock Test, students can review the answers to identify mistakes and improve further. Access these free online mock tests anytime and take a step closer to achieving excellence in your BA Economics exams.

How to do Mock Test for BA Economics International Economics?

Follow these simple steps to attempt the test:
a. The International Economics Mock Test has 30-50 questions for students as per BA Economics Sample Papers pattern.
b. Each International Economics question has four options, students of must read the question carefully and choose the correct answer.
c. Answer all questions given above for International Economics Mock Test.
d. Once you have answered all the International Economics MCQ based questions, click on the Submit button.
e. Your score of Online test for International Economics Mock Test will be shown instantly above.
f. To check your mistakes in MCQ based test for International Economics in BA Economics for , scroll up and see the correct answers.
g. You can attempt the International Economics Mock Test as many times to improve your score in BA Economics exams.

Are these BA Economics mock tests free?

Yes, all BA Economics Online Mock Tests are completely free for students.

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There is no limit to the number of attempts and you can practice BA Economics online tests as many times as you want.

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Yes, we continuously update our BA Economics question bank to align with the latest syllabus and exam patterns.