Complete Solution Manual for
International Economics Theory and
Policy 11th Edition RATED A+
EXAM
**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 Nations," 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** ✅
*Source: *
**2. From 1950 to 2015:**
A) the U.S. economy roughly tripled in size
B) U.S. imports roughly tripled in size
**C) the share of U.S. trade in the global 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
,*Source: *
**3. The United States is less dependent on trade than most other
countries because:**
**A) the United States is a relatively large country with diverse
resources** ✅
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
*Source: *
**4. Theories of international economics from the 18th and 19th
centuries are:**
A) not relevant to current policy analysis
B) only of moderate relevance in today's modern international
economy
**C) highly relevant in today's modern international economy** ✅
D) the only theories that are actually relevant to modern international
economy
E) not well understood by modern mathematically oriented theorists
*Source: *
,**5. An important insight of international trade theory is that when
two countries engage in voluntary trade:**
A) one country always benefits at the expense of the other
**B) it is almost always beneficial to both countries** ✅
C) it only benefits the low wage country
D) it only benefits the high wage country
E) it is almost never beneficial to both countries
*Source: *
**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 to neither country** ✅
E) trade is likely to have no effect on either country
*Source: *
**7. The benefits of international trade are derived from trade in:**
A) tangible goods only
B) intangible goods only
C) goods but not services
D) services but not goods
, **E) anything of value** ✅
*Source: *
**8. Which of the following does NOT belong?**
A) NAFTA
B) Uruguay Round
C) World Trade Organization
**D) non-tariff barriers** ✅
E) major free trade agreements of the 1990s
*Source: *
**9. International economics uses the same fundamental methods of
analysis as other branches 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 cooperation with other
countries
**E) the motives and behavior of individuals are the same in
international trade as they are in domestic transactions** ✅
*Source: *
International Economics Theory and
Policy 11th Edition RATED A+
EXAM
**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 Nations," 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** ✅
*Source: *
**2. From 1950 to 2015:**
A) the U.S. economy roughly tripled in size
B) U.S. imports roughly tripled in size
**C) the share of U.S. trade in the global 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
,*Source: *
**3. The United States is less dependent on trade than most other
countries because:**
**A) the United States is a relatively large country with diverse
resources** ✅
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
*Source: *
**4. Theories of international economics from the 18th and 19th
centuries are:**
A) not relevant to current policy analysis
B) only of moderate relevance in today's modern international
economy
**C) highly relevant in today's modern international economy** ✅
D) the only theories that are actually relevant to modern international
economy
E) not well understood by modern mathematically oriented theorists
*Source: *
,**5. An important insight of international trade theory is that when
two countries engage in voluntary trade:**
A) one country always benefits at the expense of the other
**B) it is almost always beneficial to both countries** ✅
C) it only benefits the low wage country
D) it only benefits the high wage country
E) it is almost never beneficial to both countries
*Source: *
**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 to neither country** ✅
E) trade is likely to have no effect on either country
*Source: *
**7. The benefits of international trade are derived from trade in:**
A) tangible goods only
B) intangible goods only
C) goods but not services
D) services but not goods
, **E) anything of value** ✅
*Source: *
**8. Which of the following does NOT belong?**
A) NAFTA
B) Uruguay Round
C) World Trade Organization
**D) non-tariff barriers** ✅
E) major free trade agreements of the 1990s
*Source: *
**9. International economics uses the same fundamental methods of
analysis as other branches 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 cooperation with other
countries
**E) the motives and behavior of individuals are the same in
international trade as they are in domestic transactions** ✅
*Source: *
