Top 50+ Solved International Economy MCQ Questions Answer
Q. Arguments for free trade are sometimes disregarded by politicians because:
a. Maximizing domestic efficiency is not considered important
b. Maximizing consumer welfare may not be a chief priority
c. other economies
d. Economists tend to favor highly protected domestic markets
Q. Technological improvements are similar to international trade since they both:
a. Provide benefits for all producers and consumers
b. increase the nation aggregate income
c. Reduce unemployment for all domestic workers
d. Ensure that industries can operate at less than full capacity
Q. A widely used indicator to differentiate developed countries from developing
a. international trade per capita
b. real income per capita
c. unemployment per capita
d. calories per capita
Q. All of the following are debit items in the balance of payments, except:
a. capital outflows
b. merchandise exports
c. private gifts to foreigners
d. foreign aid granted to other nations
Q. The role of ----------- is to direct one nation's saving into another nation
a. merchandise trade flows
b. services flows
c. current account flows
d. capital flows
Q. The current account includes
a. the value of trade in merchandise
b. services
c. unilateral transfers
d. all of the above
Q. A current account surplus implies that
a. the country is a net lender to the rest of the world
b. the country is running a net capital account surplus
c. foreign investment in domestic securities is at very low levels
d. all of the above