, TESTBANK FOR International Economics 19th Edition Carbaugh
Important Notes
The file includes the complete test bank, organized chapter by chapter.
A sample of selected pages has been provided for preview.
All available appendices and Excel files (if included in the original resources) are
provided.
We continuously update our files to ensure you receive the latest and most accurate
editions.
New editions are added regularly – stay connected for updates!
✅ Why Buy From Us?
📚 Complete & organized chapter-by-chapter – no missing content, no guessing.
⚡ Instant digital delivery – get your file the moment you pay, no waiting.
📅 Always up to date – we track new editions so you always get the latest version.
💬 Friendly support – real humans ready to help, anytime you need us.
🔒 Safe & secure – thousands of satisfied students trust us every semester.
🛡️Our Guarantees
💰 Money-Back Guarantee: Not satisfied? We offer a full refund – no questions asked.
🔄 Wrong File? No Problem: Contact us and we will replace it immediately with the
correct version, free of charge.
⏰ 24/7 Support: We are always here – reach out anytime and expect a fast response.
Contact Email:
,Chapter 1 The International Economy and Globalization
1. Which of the following is a dimension of integration into the world economy?
a. Fair labor standards.
b. Flexible exchange rates.
c. Decreased foreign competition.
d. Dependence on imported materials.
ANSWER: d
FEEDBACK: a.
b.
c.
d. Integration involves several dimensions, including the
dependence on imported materials.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG:
Analytic
STATE STANDARDS: United States - PA - DISC1: - Gains from trade, specialization, and
trade
TOPICS: The United States as an Open Economy
KEYWORDS: BLOOM'S: Understand
DATE CREATED: 1/21/2025 3:40 AM
DATE MODIFIED: 1/21/2025 3:40 AM
2. Which of the following is a disadvantage of globalization?
a. Living standards can increase more rapidly.
b. Global competition and cheap imports keep a constraint on prices.
c. Easier access to foreign investment and low interest rates.
d. Companies building state-of-the-art factories in low-wage countries.
ANSWER: d
FEEDBACK: a.
b.
c.
d. American employees can lose their competitiveness when
companies build state-of-the-art factories in low-wage
countries, making them as productive as those in the United
States.
POINTS: 1
DIFFICULTY: Challenging
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG:
Analytic
STATE STANDARDS: United States - PA - DISC1: - Gains from trade, specialization, and
trade
TOPICS: Has Globalization Gone Too Far?
KEYWORDS: BLOOM'S: Remember
Copyright Cengage Learning. Powered by Cognero. Page 1
,DATE CREATED: 1/21/2025 3:40 AM
DATE MODIFIED: 1/21/2025 3:40 AM
3. Which statement about globalization is true?
a. It has led to more quotas on trade around the world.
b. It is a purely economic term used to describe interrelated global markets.
c. It has been fueled by trade, immigration, and foreign investment.
d. It is the process by which more countries are becoming economically self-sufficient around
the globe.
ANSWER: c
FEEDBACK: a.
b.
c. Globalization consists of the increased interaction of product
and resource markets across nations via trade, immigration,
and foreign investment.
d.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG:
Analytic
STATE STANDARDS: United States - PA - DISC1: - Gains from trade, specialization, and
trade
TOPICS: Globalization of Economic Activity
KEYWORDS: BLOOM'S: Understand
DATE CREATED: 1/21/2025 3:40 AM
DATE MODIFIED: 1/21/2025 3:40 AM
4. Which statement is true about import restrictions?
a. They decrease the volume of exports.
b. They lead to more jobs for domestic workers.
c. They decrease imports and increase exports.
d. They are more conducive to prosperity than free trade.
ANSWER: a
FEEDBACK: a. Trade restrictions that decrease the volume of imports will also
decrease exports.
b.
c.
d.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG:
Analytic
STATE STANDARDS: United States - PA - DISC1: - Gains from trade, specialization, and
Copyright Cengage Learning. Powered by Cognero. Page 2
, trade
TOPICS: Common Fallacies of International Trade
KEYWORDS: BLOOM'S: Understand
DATE CREATED: 1/21/2025 3:40 AM
DATE MODIFIED: 1/21/2025 3:40 AM
5. Most of the world's population now lives in nations that are
a. integrated or becoming integrated into world markets.
b. trying to overcome economic isolation.
c. cutting back on foreign investment.
d. economically independent.
ANSWER: a
FEEDBACK: a. In today’s world, no nation exists in economic isolation.
b.
c.
d.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG:
Analytic
STATE STANDARDS: United States - PA - DISC1: - Gains from trade, specialization, and
trade
TOPICS: Introduction
KEYWORDS: BLOOM'S: Understand
DATE CREATED: 1/21/2025 3:40 AM
DATE MODIFIED: 1/21/2025 3:40 AM
6. International trade generally
a. decreases jobs.
b. generates income.
c. decreases productivity.
d. reduces competition.
ANSWER: b
FEEDBACK: a.
b. Producing goods for export generates jobs and income for
domestic workers.
c.
d.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG:
Analytic
Copyright Cengage Learning. Powered by Cognero. Page 3
,STATE STANDARDS: United States - PA - DISC1: - Gains from trade, specialization, and
trade
TOPICS: Is International Trade an Opportunity or Threat to Workers?
KEYWORDS: BLOOM'S: Understand
DATE CREATED: 1/21/2025 3:40 AM
DATE MODIFIED: 1/21/2025 3:40 AM
7. The largest amount of trade with the United States in recent years has been conducted with
a. China.
b. Germany.
c. Canada.
d. the United Kingdom.
ANSWER: c
FEEDBACK: a.
b.
c. Canada heads the list of US trading partners
d.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG:
Analytic
STATE STANDARDS: United States - PA - DISC1: - Gains from trade, specialization, and
trade
TOPICS: The United States as an Open Economy
KEYWORDS: BLOOM'S: Remember
DATE CREATED: 1/21/2025 3:40 AM
DATE MODIFIED: 1/21/2025 11:14 AM
8. What led to the sharp loss of market share in the example of the Eastman Kodak Company?
a. increased desire for higher-quality product substitutes
b. consumer concern over Eastman Kodak’s near monopoly in the U.S. markets
c. lack of innovation in emerging digital technologies
d. increased profits of domestic import-competing industries
ANSWER: c
FEEDBACK: a.
b.
c. Kodak provides a striking example of an industrial giant that
faltered in the face of global competition and advancing
technology. It was slow in launching the production of digital
cameras and failed to understand that smartphones replaced
cameras.
d.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
Copyright Cengage Learning. Powered by Cognero. Page 4
,HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG:
Analytic
STATE STANDARDS: United States - PA - DISC1: - Gains from trade, specialization, and
trade
TOPICS: The United States as an Open Economy
KEYWORDS: BLOOM'S: Understand
DATE CREATED: 1/21/2025 3:40 AM
DATE MODIFIED: 1/21/2025 3:40 AM
9. Which statement is true about international trade?
a. It is zero-sum game.
b. Imports always result in domestic unemployment.
c. Tariffs on imports always protect domestic jobs.
d. Imports and exports are connected; as one falls, the other generally rises.
ANSWER: d
FEEDBACK: a.
b.
c.
d. The drag on an economy caused by rising imports tends to be
offset by the stimulus on the economy caused by rising exports.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG:
Analytic
STATE STANDARDS: United States - PA - DISC1: - Gains from trade, specialization, and
trade
TOPICS: Common Fallacies of International Trade
KEYWORDS: BLOOM'S: Understand
DATE CREATED: 1/21/2025 3:40 AM
DATE MODIFIED: 1/21/2025 3:40 AM
10. North Carolina produces sweet potatoes in its rich soil, but does not have the climate to grow oranges
well. It is correct to say that, relative to Florida, North Carolina has which of the following?
a. An absolute advantage in sweet potato production.
b. A monopoly on sweet potato production.
c. A comparative advantage in sweet potato production.
d. A trade imbalance in sweet potato production.
ANSWER: c
FEEDBACK: a.
b.
c. According to the principle of comparative advantage, if
countries specialize in what they are relatively best at
producing, they will import products that their trading partners
are most efficient at producing, yielding benefits for both
countries.
Copyright Cengage Learning. Powered by Cognero. Page 5
, d.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG:
Analytic
STATE STANDARDS: United States - PA - DISC1: - Gains from trade, specialization, and
trade
TOPICS: Common Fallacies of International Trade
KEYWORDS: BLOOM'S: Apply
DATE CREATED: 1/21/2025 3:40 AM
DATE MODIFIED: 1/21/2025 3:40 AM
11. According to human rights activists, which organization supports governments that permit
sweatshops?
a. The International Organization for Standardization
b. The International Monetary Fund
c. The World Health Organization
d. The World Trade Organization
ANSWER: b
FEEDBACK: a.
b. Human rights activists contend that the International Monetary
Fund supports governments that allow sweatshops and
pursues policies that bail out governmental officials at the
expense of local economies.
c.
d.
POINTS: 1
DIFFICULTY: Challenging
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG:
Analytic
STATE STANDARDS: United States - PA - DISC1: - Gains from trade, specialization, and
trade
TOPICS: Has Globalization Gone Too Far?
KEYWORDS: BLOOM'S: Understand
DATE CREATED: 1/21/2025 3:40 AM
DATE MODIFIED: 1/21/2025 3:40 AM
12. With globalization and import competition, U.S. prices generally
a. increase.
b. decrease.
c. remain stable.
d. fluctuate wildly.
ANSWER: b
Copyright Cengage Learning. Powered by Cognero. Page 6
,FEEDBACK: a.
b. Global competition and cheap imports keep a constraint on
prices, so inflation is less likely to disrupt economic growth.
c.
d.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG:
Analytic
STATE STANDARDS: United States - PA - DISC1: - Gains from trade, specialization, and
trade
TOPICS: Has Globalization Gone Too Far?
KEYWORDS: BLOOM'S: Remember
DATE CREATED: 1/21/2025 3:40 AM
DATE MODIFIED: 1/21/2025 3:40 AM
13. The United States was less open to international trade between
a. 1870 and 1914.
b. 1944 and 1980.
c. 1890 and 1950.
d. 1980 and the present.
ANSWER: c
FEEDBACK: a.
b.
c. Two world wars and the Great Depression of the 1930s caused
the United States to reduce its dependence on trade, partly for
national security reasons and partly to protect its home
industries from import competition.
d.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG:
Analytic
STATE STANDARDS: United States - PA - DISC1: - Gains from trade, specialization, and
trade
TOPICS: The United States as an Open Economy
KEYWORDS: BLOOM'S: Remember
DATE CREATED: 1/21/2025 3:40 AM
DATE MODIFIED: 1/21/2025 3:40 AM
14. A sudden shift from import tariffs to free trade may induce short-term unemployment in
a. import-competing industries.
b. industries that are only exporters.
c. industries that sell domestically as well as export.
Copyright Cengage Learning. Powered by Cognero. Page 7
, d. industries that neither import nor export.
ANSWER: a
FEEDBACK: a. Cheap exports produced by lower-cost foreign workers threaten to eliminate jo
workers in industrial countries.
b.
c.
d.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic
STATE STANDARDS: United States - PA - DISC1: - Gains from trade, specialization, and trade
TOPICS: Is International Trade an Opportunity or Threat to Workers?
KEYWORDS: BLOOM'S: Apply
DATE CREATED: 1/21/2025 3:40 AM
DATE MODIFIED: 1/21/2025 3:40 AM
15. Economic interdependence occurs through
a. trade.
b. protectionism.
c. war.
d. tariffs.
ANSWER: a
FEEDBACK: a. Economic interdependence occurs through trade.
b.
c.
d.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG:
Analytic
STATE STANDARDS: United States - PA - DISC1: - Gains from trade, specialization, and
trade
TOPICS: Introduction
KEYWORDS: BLOOM'S: Apply
DATE CREATED: 1/21/2025 3:40 AM
DATE MODIFIED: 1/21/2025 3:40 AM
16. Small countries tend to have higher measures of openness than larger countries because
a. their productivity is higher.
b. they are more reliant on international trade.
c. they are less reliant on international trade.
d. they are more economically diverse.
Copyright Cengage Learning. Powered by Cognero. Page 8
Important Notes
The file includes the complete test bank, organized chapter by chapter.
A sample of selected pages has been provided for preview.
All available appendices and Excel files (if included in the original resources) are
provided.
We continuously update our files to ensure you receive the latest and most accurate
editions.
New editions are added regularly – stay connected for updates!
✅ Why Buy From Us?
📚 Complete & organized chapter-by-chapter – no missing content, no guessing.
⚡ Instant digital delivery – get your file the moment you pay, no waiting.
📅 Always up to date – we track new editions so you always get the latest version.
💬 Friendly support – real humans ready to help, anytime you need us.
🔒 Safe & secure – thousands of satisfied students trust us every semester.
🛡️Our Guarantees
💰 Money-Back Guarantee: Not satisfied? We offer a full refund – no questions asked.
🔄 Wrong File? No Problem: Contact us and we will replace it immediately with the
correct version, free of charge.
⏰ 24/7 Support: We are always here – reach out anytime and expect a fast response.
Contact Email:
,Chapter 1 The International Economy and Globalization
1. Which of the following is a dimension of integration into the world economy?
a. Fair labor standards.
b. Flexible exchange rates.
c. Decreased foreign competition.
d. Dependence on imported materials.
ANSWER: d
FEEDBACK: a.
b.
c.
d. Integration involves several dimensions, including the
dependence on imported materials.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG:
Analytic
STATE STANDARDS: United States - PA - DISC1: - Gains from trade, specialization, and
trade
TOPICS: The United States as an Open Economy
KEYWORDS: BLOOM'S: Understand
DATE CREATED: 1/21/2025 3:40 AM
DATE MODIFIED: 1/21/2025 3:40 AM
2. Which of the following is a disadvantage of globalization?
a. Living standards can increase more rapidly.
b. Global competition and cheap imports keep a constraint on prices.
c. Easier access to foreign investment and low interest rates.
d. Companies building state-of-the-art factories in low-wage countries.
ANSWER: d
FEEDBACK: a.
b.
c.
d. American employees can lose their competitiveness when
companies build state-of-the-art factories in low-wage
countries, making them as productive as those in the United
States.
POINTS: 1
DIFFICULTY: Challenging
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG:
Analytic
STATE STANDARDS: United States - PA - DISC1: - Gains from trade, specialization, and
trade
TOPICS: Has Globalization Gone Too Far?
KEYWORDS: BLOOM'S: Remember
Copyright Cengage Learning. Powered by Cognero. Page 1
,DATE CREATED: 1/21/2025 3:40 AM
DATE MODIFIED: 1/21/2025 3:40 AM
3. Which statement about globalization is true?
a. It has led to more quotas on trade around the world.
b. It is a purely economic term used to describe interrelated global markets.
c. It has been fueled by trade, immigration, and foreign investment.
d. It is the process by which more countries are becoming economically self-sufficient around
the globe.
ANSWER: c
FEEDBACK: a.
b.
c. Globalization consists of the increased interaction of product
and resource markets across nations via trade, immigration,
and foreign investment.
d.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG:
Analytic
STATE STANDARDS: United States - PA - DISC1: - Gains from trade, specialization, and
trade
TOPICS: Globalization of Economic Activity
KEYWORDS: BLOOM'S: Understand
DATE CREATED: 1/21/2025 3:40 AM
DATE MODIFIED: 1/21/2025 3:40 AM
4. Which statement is true about import restrictions?
a. They decrease the volume of exports.
b. They lead to more jobs for domestic workers.
c. They decrease imports and increase exports.
d. They are more conducive to prosperity than free trade.
ANSWER: a
FEEDBACK: a. Trade restrictions that decrease the volume of imports will also
decrease exports.
b.
c.
d.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG:
Analytic
STATE STANDARDS: United States - PA - DISC1: - Gains from trade, specialization, and
Copyright Cengage Learning. Powered by Cognero. Page 2
, trade
TOPICS: Common Fallacies of International Trade
KEYWORDS: BLOOM'S: Understand
DATE CREATED: 1/21/2025 3:40 AM
DATE MODIFIED: 1/21/2025 3:40 AM
5. Most of the world's population now lives in nations that are
a. integrated or becoming integrated into world markets.
b. trying to overcome economic isolation.
c. cutting back on foreign investment.
d. economically independent.
ANSWER: a
FEEDBACK: a. In today’s world, no nation exists in economic isolation.
b.
c.
d.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG:
Analytic
STATE STANDARDS: United States - PA - DISC1: - Gains from trade, specialization, and
trade
TOPICS: Introduction
KEYWORDS: BLOOM'S: Understand
DATE CREATED: 1/21/2025 3:40 AM
DATE MODIFIED: 1/21/2025 3:40 AM
6. International trade generally
a. decreases jobs.
b. generates income.
c. decreases productivity.
d. reduces competition.
ANSWER: b
FEEDBACK: a.
b. Producing goods for export generates jobs and income for
domestic workers.
c.
d.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG:
Analytic
Copyright Cengage Learning. Powered by Cognero. Page 3
,STATE STANDARDS: United States - PA - DISC1: - Gains from trade, specialization, and
trade
TOPICS: Is International Trade an Opportunity or Threat to Workers?
KEYWORDS: BLOOM'S: Understand
DATE CREATED: 1/21/2025 3:40 AM
DATE MODIFIED: 1/21/2025 3:40 AM
7. The largest amount of trade with the United States in recent years has been conducted with
a. China.
b. Germany.
c. Canada.
d. the United Kingdom.
ANSWER: c
FEEDBACK: a.
b.
c. Canada heads the list of US trading partners
d.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG:
Analytic
STATE STANDARDS: United States - PA - DISC1: - Gains from trade, specialization, and
trade
TOPICS: The United States as an Open Economy
KEYWORDS: BLOOM'S: Remember
DATE CREATED: 1/21/2025 3:40 AM
DATE MODIFIED: 1/21/2025 11:14 AM
8. What led to the sharp loss of market share in the example of the Eastman Kodak Company?
a. increased desire for higher-quality product substitutes
b. consumer concern over Eastman Kodak’s near monopoly in the U.S. markets
c. lack of innovation in emerging digital technologies
d. increased profits of domestic import-competing industries
ANSWER: c
FEEDBACK: a.
b.
c. Kodak provides a striking example of an industrial giant that
faltered in the face of global competition and advancing
technology. It was slow in launching the production of digital
cameras and failed to understand that smartphones replaced
cameras.
d.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
Copyright Cengage Learning. Powered by Cognero. Page 4
,HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG:
Analytic
STATE STANDARDS: United States - PA - DISC1: - Gains from trade, specialization, and
trade
TOPICS: The United States as an Open Economy
KEYWORDS: BLOOM'S: Understand
DATE CREATED: 1/21/2025 3:40 AM
DATE MODIFIED: 1/21/2025 3:40 AM
9. Which statement is true about international trade?
a. It is zero-sum game.
b. Imports always result in domestic unemployment.
c. Tariffs on imports always protect domestic jobs.
d. Imports and exports are connected; as one falls, the other generally rises.
ANSWER: d
FEEDBACK: a.
b.
c.
d. The drag on an economy caused by rising imports tends to be
offset by the stimulus on the economy caused by rising exports.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG:
Analytic
STATE STANDARDS: United States - PA - DISC1: - Gains from trade, specialization, and
trade
TOPICS: Common Fallacies of International Trade
KEYWORDS: BLOOM'S: Understand
DATE CREATED: 1/21/2025 3:40 AM
DATE MODIFIED: 1/21/2025 3:40 AM
10. North Carolina produces sweet potatoes in its rich soil, but does not have the climate to grow oranges
well. It is correct to say that, relative to Florida, North Carolina has which of the following?
a. An absolute advantage in sweet potato production.
b. A monopoly on sweet potato production.
c. A comparative advantage in sweet potato production.
d. A trade imbalance in sweet potato production.
ANSWER: c
FEEDBACK: a.
b.
c. According to the principle of comparative advantage, if
countries specialize in what they are relatively best at
producing, they will import products that their trading partners
are most efficient at producing, yielding benefits for both
countries.
Copyright Cengage Learning. Powered by Cognero. Page 5
, d.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG:
Analytic
STATE STANDARDS: United States - PA - DISC1: - Gains from trade, specialization, and
trade
TOPICS: Common Fallacies of International Trade
KEYWORDS: BLOOM'S: Apply
DATE CREATED: 1/21/2025 3:40 AM
DATE MODIFIED: 1/21/2025 3:40 AM
11. According to human rights activists, which organization supports governments that permit
sweatshops?
a. The International Organization for Standardization
b. The International Monetary Fund
c. The World Health Organization
d. The World Trade Organization
ANSWER: b
FEEDBACK: a.
b. Human rights activists contend that the International Monetary
Fund supports governments that allow sweatshops and
pursues policies that bail out governmental officials at the
expense of local economies.
c.
d.
POINTS: 1
DIFFICULTY: Challenging
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG:
Analytic
STATE STANDARDS: United States - PA - DISC1: - Gains from trade, specialization, and
trade
TOPICS: Has Globalization Gone Too Far?
KEYWORDS: BLOOM'S: Understand
DATE CREATED: 1/21/2025 3:40 AM
DATE MODIFIED: 1/21/2025 3:40 AM
12. With globalization and import competition, U.S. prices generally
a. increase.
b. decrease.
c. remain stable.
d. fluctuate wildly.
ANSWER: b
Copyright Cengage Learning. Powered by Cognero. Page 6
,FEEDBACK: a.
b. Global competition and cheap imports keep a constraint on
prices, so inflation is less likely to disrupt economic growth.
c.
d.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG:
Analytic
STATE STANDARDS: United States - PA - DISC1: - Gains from trade, specialization, and
trade
TOPICS: Has Globalization Gone Too Far?
KEYWORDS: BLOOM'S: Remember
DATE CREATED: 1/21/2025 3:40 AM
DATE MODIFIED: 1/21/2025 3:40 AM
13. The United States was less open to international trade between
a. 1870 and 1914.
b. 1944 and 1980.
c. 1890 and 1950.
d. 1980 and the present.
ANSWER: c
FEEDBACK: a.
b.
c. Two world wars and the Great Depression of the 1930s caused
the United States to reduce its dependence on trade, partly for
national security reasons and partly to protect its home
industries from import competition.
d.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG:
Analytic
STATE STANDARDS: United States - PA - DISC1: - Gains from trade, specialization, and
trade
TOPICS: The United States as an Open Economy
KEYWORDS: BLOOM'S: Remember
DATE CREATED: 1/21/2025 3:40 AM
DATE MODIFIED: 1/21/2025 3:40 AM
14. A sudden shift from import tariffs to free trade may induce short-term unemployment in
a. import-competing industries.
b. industries that are only exporters.
c. industries that sell domestically as well as export.
Copyright Cengage Learning. Powered by Cognero. Page 7
, d. industries that neither import nor export.
ANSWER: a
FEEDBACK: a. Cheap exports produced by lower-cost foreign workers threaten to eliminate jo
workers in industrial countries.
b.
c.
d.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic
STATE STANDARDS: United States - PA - DISC1: - Gains from trade, specialization, and trade
TOPICS: Is International Trade an Opportunity or Threat to Workers?
KEYWORDS: BLOOM'S: Apply
DATE CREATED: 1/21/2025 3:40 AM
DATE MODIFIED: 1/21/2025 3:40 AM
15. Economic interdependence occurs through
a. trade.
b. protectionism.
c. war.
d. tariffs.
ANSWER: a
FEEDBACK: a. Economic interdependence occurs through trade.
b.
c.
d.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG:
Analytic
STATE STANDARDS: United States - PA - DISC1: - Gains from trade, specialization, and
trade
TOPICS: Introduction
KEYWORDS: BLOOM'S: Apply
DATE CREATED: 1/21/2025 3:40 AM
DATE MODIFIED: 1/21/2025 3:40 AM
16. Small countries tend to have higher measures of openness than larger countries because
a. their productivity is higher.
b. they are more reliant on international trade.
c. they are less reliant on international trade.
d. they are more economically diverse.
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