Q.1
If I am better at all types of production, I have the ______ in all forms of production.
  • Comparative advantage
  • Specialization
  • Absolute advantage
  • developed nation
Q.2
Developed nations have all of the following except
  • better education
  • high levels of technology
  • better health
  • higher populations
Q.3
The exchange of goods and services by sale or barter driven by the need for resources.
  • Fair Trade
  • Globalization
  • Trade
  • Standard of Living
Q.4
To focus on producing one thing to improve productivity is known as:
  • Specialization
  • International trade
  • Absolute Advantage
  • Supply and Demand
Q.5
If nations limit trade in of clothing who will benefit?
  • Domestic Consumers of clothing
  • Domestic producers of clothing
  • Foreign Producers of clothing
  • department stores who sell clothing
Q.6
Who has the power to create tariffs?
  • State governments
  • Federal government
  • Store owners
  • Factory owners
Q.7
In a collection involving payment for an international trading transaction, the principal is the exporter and the drawee is the buyer/importer.
  • True
  • False
Q.8
When the trade involves Al-Wakalah letter of credit, what role does the bank assume in the transaction?
  • Agent for the importer
  • Agent for the exporter
Q.9
What is Purchasing Power Parity?
  • Is an economic theory that allows the comparison of the purchasing power of various world currencies
  • Difference between all money flowing into the country in a particular period of time
  • Societies and countries have differing levels of "development" on an international scale.
  • None of them
Q.10
Infant industries can be helped in the world market by giving those industries a
  • subsidy
  • quota
  • embargo
  • tariff
Q.11
This is a tax on imports that is used to increase price of foreign products and raise government revenue.
  • tariff
  • quota
  • subsidy
  • embargo
Q.12
When determining comparative advantage one must determine
  • Opportunity cost
  • Specialization
  • Absolute Advantage
  • Embargos
Q.13
The Nomial Exchange Rate is the relative price of currencies of two countries.
  • False
  • True
Q.14
What is the classical gold standart?
  • Doesn´t say
  • An increase of prices over the time
  • The possibility o an unprecedented event occur that affects asset prices
  • Was a system in which nearly all countries fixed the value of their currencies in terms of a specified amount of gold
Q.15
Bretton Woods System states that Each country fixed the value of its currency in terms of gold or dollar and kept its price within a range ofof its parity value
  • True
  • False
Q.16
What is a reserve currency?
  • An unpredictable event may occur which affects the asset prices
  • A large quantity currency maintained by major financial institutions to prepare for investments to influence their domestic exchange rate
  • System created a collective international currency exchange regime
  • A supply of a commodity not needed for immediate use but available if required.
Q.17
Which are the sides of the crisis?
  • Banking Crisis
  • Capital and Trade Imbalance
  • Fiscal Crisis
  • All of the above
Q.18
The dark matter hypothesis is asking to revisit the question what is actually the true net asset position of a country.
  • False
  • True
Q.19
What are the Trade Imbalances?
  • A rise of prices over a certain period of time
  • Societies and countries have differing levels of "development" on an international scale.
  • Difference between the monetary value of a nation´s exports and imports over a certain time period
  • I don´t know
Q.20
What are International Finances?
  • the trade of goods, services, technology, capital and/or knowledge across national borders
  • Societies and countries have differing levels of "development" on an international scale.
  • The study of monetary interactions between two or more countries.
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