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1、International Economics, 9e (Krugman) 1Chapter 1 Introduction1.1 What Is International Economics About?1) Historians of economic thought often describe _ written by _ and published in _ as the first real exposition of an economic model. A) Of the Balance of Trade, David Hume, 1776 B) Wealth of Natio
2、ns, David Hume, 1758 C) Wealth of Nations, Adam Smith, 1758 D) Wealth of Nations, Adam Smith, 1776 E) Of the Balance of Trade, David Hume, 1758 Answer: E Question Status: Previous Edition2) From 1959 to 2004, A) the U.S. economy roughly tripled in size. B) U.S. imports roughly tripled in size. C) th
3、e share of US Trade in the economy roughly tripled in size. D) U.S. Imports roughly tripled as compared to U.S. exports. E) U.S. exports roughly tripled in size. Answer: C Question Status: Previous Edition3) The United States is less dependent on trade than most other countries because A) the United
4、 States is a relatively large country. B) the United States is a Superpower. C) the military power of the United States makes it less dependent on anything. D) the United States invests in many other countries. E) many countries invest in the United States. Answer: A Question Status: Previous Editio
5、n4) Ancient theories of international economics from the 18th and 19th Centuries are A) not relevant to current policy analysis. B) are only of moderate relevance in todays modern international economy. C) are highly relevant in todays modern international economy. D) are the only theories that actu
6、ally relevant to modern international economy. E) are not well understood by modern mathematically oriented theorists. Answer: C Question Status: Previous Edition5) An important insight of international trade theory is that when countries exchange goods and services one with the other it A) is alway
7、s beneficial to both countries. B) is usually beneficial to both countries. C) is typically beneficial only to the low wage trade partner country. D) is typically harmful to the technologically lagging country. E) tends to create unemployment in both countries. Answer: B Question Status: Previous Ed
8、ition 6) If there are large disparities in wage levels between countries, then A) trade is likely to be harmful to both countries. B) trade is likely to be harmful to the country with the high wages. C) trade is likely to be harmful to the country with the low wages. D) trade is likely to be harmful
9、 to neither country. E) trade is likely to have no effect on either country. Answer: D Question Status: Previous Edition7) Benefits of international trade are limited to A) tangible goods. B) intangible goods. C) all goods but not services. D) services. E) None of the above. Answer: E Question Statu
10、s: Previous Edition8) Which of the following does not belong? A) NAFTA B) Uruguay Round C) World Trade Organization D) None Tariff Barriers E) None of the above. Answer: D Question Status: Previous Edition9) International economics does not use the same fundamental methods of analysis as other branc
11、hes of economics, because A) the level of complexity of international issues is unique. B) the interactions associated with international economic relations is highly mathematical. C) international economics takes a different perspective on economic issues. D) international economic policy requires
12、cooperation with other countries. E) None of the above. Answer: E Question Status: New10) Because the Constitution forbids restraints on interstate trade, A) the U.S. may not impose tariffs on imports from NAFTA countries. B) the U.S. may not affect the international value of the $ U.S. C) the U.S.
13、may not put restraints on foreign investments in California if it involves a financial intermediary in New York State. D) the U.S. may not impose export duties. E) None of the above Answer: E Question Status: New 11) Which of the following is not a major concern of international economic theory? A)
14、protectionism B) the balance of payments C) exchange rate determination D) Bilateral trade relations with China E) None of the above Answer: D Question Status: New12) Trade is generally harmful if there are large disparities between countries in wages. A) This is generally true. B) This is generally false. C) Trade theory has nothing to say about this issue. D) This is true if the trade partner ignores child labor laws. E) This is tr
