INTERNATIONAL ECONOMICS EXAMINATION
QUESTIONS AND CORRECT ANSWER WITH
EXPLANATION GRADED A+ STUDY GUIDE SOUTHERN
NEW HAMPSHIRE UNIVERSITY
1.
What is international economics?
A. Study of local markets only
B. Study of trade, finance, and economic relations between countries
C. Sports economics only
D. Religious economics only
Correct Answer: B. Study of trade, finance, and economic relations between countries
Rationale: International economics examines global economic interactions.
2.
What is international trade?
A. Domestic exchange only
B. Exchange of goods and services between countries
C. Sports trade only
D. Religious exchange only
Correct Answer: B. Exchange of goods and services between countries
Rationale: International trade connects global markets.
3.
What is exports?
A. Goods bought from other countries
B. Goods sold to other countries
C. Sports products only
D. Religious materials only
,Correct Answer: B. Goods sold to other countries
Rationale: Exports generate foreign income for a country.
4.
What is imports?
A. Goods sold abroad
B. Goods purchased from other countries
C. Sports equipment only
D. Religious imports only
Correct Answer: B. Goods purchased from other countries
Rationale: Imports provide products unavailable locally.
5.
What is balance of trade?
A. Political agreement only
B. Difference between a country’s exports and imports
C. Sports balance only
D. Religious balance only
Correct Answer: B. Difference between a country’s exports and imports
Rationale: Balance of trade measures trade performance.
6.
What is free trade?
A. Trade without restrictions or tariffs
B. Trade banned internationally
C. Sports trade only
D. Religious exchange only
Correct Answer: A. Trade without restrictions or tariffs
Rationale: Free trade encourages open global markets.
, 7.
What is a tariff?
A. Government tax on imports or exports
B. Sports fee only
C. Religious contribution only
D. Entertainment charge only
Correct Answer: A. Government tax on imports or exports
Rationale: Tariffs protect domestic industries and raise revenue.
8.
What is globalization in economics?
A. Isolation of economies
B. Increasing economic integration among countries
C. Sports integration only
D. Religious globalization only
Correct Answer: B. Increasing economic integration among countries
Rationale: Globalization links economies worldwide.
9.
What is foreign exchange?
A. Domestic currency only
B. Exchange of one currency for another
C. Sports exchange only
D. Religious exchange only
Correct Answer: B. Exchange of one currency for another
Rationale: Foreign exchange supports international transactions.
10.
What is exchange rate?
QUESTIONS AND CORRECT ANSWER WITH
EXPLANATION GRADED A+ STUDY GUIDE SOUTHERN
NEW HAMPSHIRE UNIVERSITY
1.
What is international economics?
A. Study of local markets only
B. Study of trade, finance, and economic relations between countries
C. Sports economics only
D. Religious economics only
Correct Answer: B. Study of trade, finance, and economic relations between countries
Rationale: International economics examines global economic interactions.
2.
What is international trade?
A. Domestic exchange only
B. Exchange of goods and services between countries
C. Sports trade only
D. Religious exchange only
Correct Answer: B. Exchange of goods and services between countries
Rationale: International trade connects global markets.
3.
What is exports?
A. Goods bought from other countries
B. Goods sold to other countries
C. Sports products only
D. Religious materials only
,Correct Answer: B. Goods sold to other countries
Rationale: Exports generate foreign income for a country.
4.
What is imports?
A. Goods sold abroad
B. Goods purchased from other countries
C. Sports equipment only
D. Religious imports only
Correct Answer: B. Goods purchased from other countries
Rationale: Imports provide products unavailable locally.
5.
What is balance of trade?
A. Political agreement only
B. Difference between a country’s exports and imports
C. Sports balance only
D. Religious balance only
Correct Answer: B. Difference between a country’s exports and imports
Rationale: Balance of trade measures trade performance.
6.
What is free trade?
A. Trade without restrictions or tariffs
B. Trade banned internationally
C. Sports trade only
D. Religious exchange only
Correct Answer: A. Trade without restrictions or tariffs
Rationale: Free trade encourages open global markets.
, 7.
What is a tariff?
A. Government tax on imports or exports
B. Sports fee only
C. Religious contribution only
D. Entertainment charge only
Correct Answer: A. Government tax on imports or exports
Rationale: Tariffs protect domestic industries and raise revenue.
8.
What is globalization in economics?
A. Isolation of economies
B. Increasing economic integration among countries
C. Sports integration only
D. Religious globalization only
Correct Answer: B. Increasing economic integration among countries
Rationale: Globalization links economies worldwide.
9.
What is foreign exchange?
A. Domestic currency only
B. Exchange of one currency for another
C. Sports exchange only
D. Religious exchange only
Correct Answer: B. Exchange of one currency for another
Rationale: Foreign exchange supports international transactions.
10.
What is exchange rate?
