Top 250+ Solved International Economics MCQ Questions Answer
Q. What would encourage trade between two countries?
a. Different tax system
b. Quality control
c. Reduced tariffs
d. Fixing import quota
Q. In the European Union:
a. All member countries have a single exchange rate
b. All members set their own tariffs
c. There is a common tariff against non-members
d. All taxes are set the same
Q. The European Union has grown to be one of the world's largest trading blocs and markets. What is the approximate size of the population of the EU?
a. 500 million people
b. 292 million people
c. 1.3 billion people
d. 127 million people
Q. Which two institutions decide the Union's budget?
a. The Council of Ministers and the European Commission
b. The European Parliament and the European Central Bank
c. The Council of Ministers and the European Parliament
d. The European Central Bank and the European Commission
Q. The European Union is one powerful global economic bloc. ASEAN is best described as being:
a. A free trade zone
b. A confederation of states
c. A customs union
d. A monetary union
Q. Which of the following EU countries are sometimes referred to as the PIGS countries?
a. Portugal, Ireland. Greece, Spain
b. Poland, Italy, Germany, Slovenia
c. Poland, Ireland, Greece, Switzerland
d. Portugal, Italy, Greece, Slovenia
Q. What is the main reason behind the introduction of the euro?
a. It promotes economic sovereignty
b. It can protect business trading from currency fluctuations
c. To allow the free movement of people
d. It was a branding exercise
Q. Which of the following are exclusive EU competencies in relation to Member States?
a. Conservation of marine biological resources (common fisheries policies), common market policies, the customs union and monetary policy for Member States belonging to the Eurozone.
b. The customs union, the environment, agriculture and consumer protection.
c. Monetary policy for Member states belonging to the Eurozone, tourism, transport and industrial policy, EU regional Policy.
d. The customs union, common commercial (trade) policies, education and culture.
Q. A common or single market will have all of the following features except:
a. No internal trade barriers
b. Common external tariff
c. Factor and Asset mobility
d. A common currency
Q. Which of the options below is the only characteristic of a free trade area?
a. A common currency
b. Common economic policy
c. No internal trade barriers
d. Common external tariff
Q. On the balance-of-payments statements, merchandise imports are classified in the:
a. Current account
b. Capital account
c. Unilateral transfer account
d. Official settlements account
Q. The balance of international indebtedness is a record of a country’s international:
a. Investment position over a period of time
b. Investment position at a fixed point in time
c. Trade position over a period of time
d. Trade position at a fixed point in time
Q. Which balance-of-payments item does not directly enter into the calculation of the U.S.gross domestic product?
a. Merchandise imports
b. Shipping and transportation receipts
c. Direct foreign investment
d. Service exports
Q. Which of the following is considered a capital inflow?
a. A sale of U.S. financial assets to a foreign buyer
b. A loan from a U.S. bank to a foreign borrower
c. A purchase of foreign financial assets by a U.S. buyer
d. A U.S. citizen’s repayment of a loan from a foreign bank