Test Bank for International Economics: Theory and Policy, 12th Edition by Krugman

International Economics: Theory and Policy, 12e (Krugman)
Chapter 1 Introduction

1.1 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 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
Answer: E
Difficulty: Easy
AACSB: Application of knowledge

2) From 1960 to 2019
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 compared with the
economy as a whole.
D) U.S. imports roughly tripled as compared to U.S. exports.
E) U.S. exports roughly tripled in size.
Answer: C
Difficulty: Easy
AACSB: Application of knowledge

3) From 1960 to 2019, both U.S. imports and exports have increased, ________ have grown
more, leading to a large excess of ________.
A) imports; imports over exports
B) exports; exports over imports
C) imports; exports over imports
D) exports; imports over exports
Answer: A
Difficulty: Easy
AACSB: Application of knowledge

4) The facts that U.S. imports and exports plunged in 2009 during the global economic crisis and
in 2020 during the Covid-19 pandemic demonstrated the close links between
A) world trade and the overall state of the world economy.
B) crisis and unemployment.
C) the pandemic and shortage of goods and services.
D) the business cycle and trade policies.
Answer: A
Difficulty: Easy
AACSB: Application of knowledge

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