Full Test Bank for International Economics: Theory and Policy, 11th Edition Global Edition – Paul Krugman, Maurice Obstfeld, Marc Melitz

TestVBankVforVEssentialsVofVOrganizationalVBehavior,V15thVEditio
n”VbyVStephen
P.VRobbinsV&VTimothyVA.VJudge.
1.1 WhatVIsVInternationalVEconomicsVAbout?

1) HistoriansVofVeconomicVthoughtVoftenVdescribeV writtenVby andVpublishedVin
asVtheVfirstVrealVexpositionVofVanVeconomicVmodel.
A) "OfVtheVBalanceVofVTrade,"VDavidVHume,V1776
B) "WealthVofVNations,"VDavidVHume,V1758
C) "WealthVofVNations,"VAdamVSmith,V1758
D) "WealthVofVNations,"VAdamVSmith,V1776
E) "OfVtheVBalanceVofVTrade,"VDavidVHume,V1
758VAnswer:V E
PageVRef:V29VDiffi
culty:V Easy

2) FromV1950VtoV2015
A) theVU.S.VeconomyVroughlyVtripledVinVsize.
B) U.S.VimportsVroughlyVtripledVinVsize.
C) theVshareVofVU.S.VtradeVinVtheVglobalVeconomyVroughlyVtripledVinVsize.
D) U.S.VimportsVroughlyVtripledVasVcomparedVtoVU.S.Vexports.
E) U.S.VexportsVroughlyVtripledVinVsi
ze.VAnswer:V C
PageVRef:V29VDiffi
culty:V Easy

3) TheVUnitedVStatesVisVlessVdependentVonVtradeVthanVmostVotherVcountriesVbecause
A) theVUnitedVStatesVisVaVrelativelyVlargeVcountryVwithVdiverseVresources.
B) theVUnitedVStatesVisVaV"Superpower."
C) theVmilitaryVpowerVofVtheVUnitedVStatesVmakesVitVlessVdependentVonVanything.
D) theVUnitedVStatesVinvestsVinVmanyVotherVcountries.
E) manyVcountriesVinvestVinVtheVUnitedVSta
tes.VAnswer:V A
PageVRef:V30VDiffi
culty:V Easy

4) TheoriesVofVinternationalVeconomicsVfromVtheV18thVandV19thVcenturiesVare
A) notVrelevantVtoVcurrentVpolicyVanalysis.
B) onlyVofVmoderateVrelevanceVinVtoday'sVmodernVinternationalVeconomy.
C) highlyVrelevantVinVtoday'sVmodernVinternationalVeconomy.
D) theVonlyVtheoriesVthatVareVactuallyVrelevantVtoVmodernVinternationalVeconomy.
E) notVwellVunderstoodVbyVmodernVmathematicallyVorientedVtheor
ists.VAnswer:V C
PageVRef:V30VDiffi
culty:V Easy
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CopyrightV©V2018VPearsonVEducationV
Ltd.

,5) AnVimportantVinsightVofVinternationalVtradeVtheoryVisVthatVwhenVtwoVcountriesVen
gageVinVvoluntaryVtrade
A) oneVcountryValwaysVbenefitsVatVtheVexpenseVofVtheVother.
B) itVisValmostValwaysVbeneficialVtoVbothVcountries.
C) itVonlyVbenefitsVtheVlowVwageVcountry.
D) itVonlyVbenefitsVtheVhighVwageVcountry.
E) itVisValmostVneverVbeneficialVtoVbothVcount
ries.VAnswer:V B
PageVRef:V32VDiffi
culty:V Easy

6) IfVthereVareVlargeVdisparitiesVinVwageVlevelsVbetweenVcountries,Vthen
A) tradeVisVlikelyVtoVbeVharmfulVtoVbothVcountries.
B) tradeVisVlikelyVtoVbeVharmfulVtoVtheVcountryVwithVtheVhighVwages.
C) tradeVisVlikelyVtoVbeVharmfulVtoVtheVcountryVwithVtheVlowVwages.
D) tradeVisVlikelyVtoVbeVharmfulVtoVneitherVcountry.
E) tradeVisVlikelyVtoVhaveVnoVeffectVonVeitherVco
untry.VAnswer:V D
PageVRef:V32VDiffi
culty:V Easy

7) TheVbenefitsVofVinternationalVtradeVareVderivedVfromVtradeVin
A) tangibleVgoodsVonly.
B) intangibleVgoodsVonly.
C) goodsVbutVnotVservices.
D) servicesVbutVnotVgoods.
E) anythingVofVvalu
e.
Answer:V E
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culty:V Easy

8) WhichVofVtheVfollowingVdoesVNOTVbelong?
A) NAFTA
B) UruguayVRound
C) WorldVTradeVOrganization
D) non-tariffVbarriers
E) majorVfreeVtradeVagreementsVofVtheV19
90sVAnswer:V D
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culty:V Easy




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CopyrightV©V2018VPearsonVEducationV
Ltd.

,9) InternationalVeconomicsV
useVtheVsameVfundamentalVmethodsVofVanalysisVasVotherVbranchesVofVeconomics,Vbec
auseV .
A) doesVnot,VtheVlevelVofVcomplexityVofVinternationalVissuesVisVunique
B) doesVnot,VtheVinteractionsVassociatedVwithVinternationalVeconomicVrelationsVisV
highlyVmathematical
C) doesVnot,VinternationalVeconomicsVtakesVaVdifferentVperspectiveVonVeconomicVissues
D) doesVnot,VinternationalVeconomicVpolicyVrequiresVcooperationVwithVotherVcountries
E) does,VtheVmotivesVandVbehaviorVofVindividualsVareVtheVsameVinVinternationalVtradeVasVth
eyVareVinVdomesticVtransactions
Answer:V EV Pa
geVRef:V31VDif
ficulty:V Easy

10) BecauseVtheVConstitutionVforbidsVrestraintsVonVinterstateVtrade
A) theVU.S.VmayVnotVimposeVtariffsVonVimportsVfromVNAFTAVcountries.
B) theVU.S.VmayVnotVaffectVtheVinternationalVvalueVofVtheV$VU.S.
C) theVU.S.VmayVnotVputVrestraintsVonVforeignVinvestmentsVinVCaliforniaVifVitVinvolvesVaV
financialVintermediaryVinVNewVYorkVState.
D) theVU.S.VmayVnotVimposeVexportVduties.
E) theVU.S.VmayVnotVdisruptVcommerceVbetweenVFloridaVandVHa
waii.VAnswer:V E
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culty:V Easy

11) WhichVofVtheVfollowingVisVNOTVaVmajorVconcernVofVinternationalVeconomicVtheory?
A) protectionism
B) theVbalanceVofVpayments
C) exchangeVrateVdetermination
D) bilateralVtradeVrelationsVwithVChina
E) theVinternationalVcapitalVmark
etVAnswer:V D
PageVRef:V32VDiffi
culty:V Easy

12) "TradeVisVgenerallyVharmfulVifVthereVareVlargeVdisparitiesVbetweenVcountriesVinVwages."
A) ThisVisVgenerallyVtrue.
B) ThisVisVgenerallyVfalse.
C) TradeVtheoryVhasVnothingVtoVsayVaboutVthisVissue.
D) ThisVisVtrueVifVtheVtradeVpartnerVignoresVchildVlaborVlaws.
E) ThisVisVtrueVifVtheVtradeVpartnerVusesVprisonVl
abor.VAnswer:V B
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culty:V Easy




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CopyrightV©V2018VPearsonVEducationV
Ltd.

, 13) WhoVsellsVwhatVtoVwhom
A) hasVbeenVaVmajorVpreoccupationVofVinternationalVeconomics.
B) isVnotVaVvalidVconcernVofVinternationalVeconomics.
C) isVnotVconsideredVimportantVforVgovernmentVforeignVtradeVpolicyVsinceVsuchVdecisionsVar
eVmadeVinVtheVprivateVcompetitiveVmarket.
D) isVdeterminedVbyVpoliticalVratherVthanVeconomicVfactors.
E) isVlessVimportantVthanVinternationalVeconomicVthe
ory.VAnswer:V A
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culty:V Easy

14) TheVinsightVthatVpatternsVofVtradeVareVprimarilyVdeterminedVbyVinternationalVdiffere
ncesVinVlaborVproductivityVwasVfirstVproposedVby
A) AdamVSmith.
B) DavidVHume.
C) DavidVRicardo.
D) EliVHeckscher.
E) LernerVandVSamuelso
n.VAnswer:V A
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culty:V Easy

15) AfterVWorldVWarVII,VtheVUnitedVStatesVhasVpursuedVaVbroadVpolicyVof
A) strengtheningV"FortressVAmerica"Vprotectionism.
B) removingVbarriersVtoVinternationalVtrade.
C) isolatingVIranVandVotherVmembersVofVtheV"axisVofVevil."
D) protectingVtheVU.S.VfromVtheVeconomicVimpactVofVoilVproducers.
E) restrictingVtradeVofVmanufacturedVgoo
ds.VAnswer:V B
PageVRef:V34VDiffi
culty:V Easy

16) TheVbalanceVofVpaymentsVhasVbecomeVaVcentralVissueVforVtheVUnitedVStatesVbecause
A) whenVtheVbalanceVofVpaymentsVisVnotVbalanced,VsocietyVisVunbalanced.
B) theVU.S.VeconomyVcannotVgrowVwhenVtheVbalanceVofVpaymentsVisVinVdeficit.
C) theVU.S.VhasVrunVhugeVtradeVdeficitsVinVeveryVyearVsinceV1982.
D) theVU.S.VneverVexperiencedVaVsurplusVinVitsVbalanceVofVpayments.
E) theVU.S.VonceVranVaVlargeVtradeVsurplusVofVaboutV$40V
billion.VAnswer:V C
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culty:V Easy




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Ltd.