Q. International trade is based on the idea that:
✅ Correct Answer: (D)
Resources are less mobile internationally than are goods
International Economics MCQs and Notes
Q. The movement to free international trade is most likely to generate short-term unemployment in which industries:
✅ Correct Answer: (B)
Import-competing industries.
Q. International trade forces domestic firms to become more competitive in terms of:
✅ Correct Answer: (D)
All of the above
Q. International trade in goods and services is sometimes used as a substitute for all of the following except:
✅ Correct Answer: (D)
Domestic production of different goods and services
Q. A main advantage of specialization results from:
✅ Correct Answer: (A)
Economics of large scale production
Q. A primary reason why nations conduct international trade is because:
✅ Correct Answer: (B)
Resources are not equally distributed to all trading nations
Q. Which of the following is NOT a part of a "policy trilemma"?
✅ Correct Answer: (A)
International trade policy
Q. Which of the following is NOT a motive for international asset trade?
✅ Correct Answer: (A)
Capital controls
Q. Which of the following is NOT true about the gold standard?
✅ Correct Answer: (Exchange r)
Q. Which of the following is NOT true about the reserve currency standard?
✅ Correct Answer: (The reserv)