International Economics Theory and Policy 6th Edition Quiz

Historians of economic thought often describe ___________ written by _______ and published in __________ as the first real exposition of an economic model.

• "Of the Balance of Trade,” David Hume, 1776

• "Wealth of Nations," David Hume, 1758

• "Wealth of Nations," Adam Smith, 1758

• "Wealth of Nations," Adam Smith, 1776

• "Of the Balance of Trade," David Hume, 1758

From 1959 to 2000,

• the U.S. economy roughly tripled in size.

• U.S. imports roughly tripled in size.

• the share of US Trade in the economy roughly tripled in size.

• U.S. Imports roughly tripled as compared to U.S. exports.

• U.S. exports roughly tripled in size.

Ancient theories of international economics from the 18th and 19th Centuries are:

• not relevant to current policy analysis.

• are only of moderate relevance in today's modern international economy.

• are highly relevant in today's modern international economy.

• are the only theories that actually relevant to modern international economy.

• are not well understood by modern mathematically oriented theorists.

An important insight of international trade theory is that when countries exchange goods and services one with the other it

• is always beneficial to both countries.

• is usually beneficial to both countries.

• is typically beneficial only to the low wage trade partner country .

• is typically harmful to the technologically lagging country.

• tends to create unemployment in both countries.

If there are large disparities in wage levels between countries, then

• trade is likely to be harmful to both countries.

• trade is likely to be harmful to the country with the high wages.

• trade is likely to be harmful to the country with the low wages.

• trade is likely to be harmful to neither country.

• trade is likely to have no effect on either country.

Benefits of international trade are limited to

• tangible goods.

• intangible goods.

• all goods but not services.

• services.

Attempts to explain the pattern of international trade

• have been a major focus of international economists.

• have proven to be hopeless.

• have pr

Attempts to explain the pattern of international trade

• have been a major focus of international economists.

• have proven to be hopeless.

• have proven to be a trivial exercise.

• have been the preoccupation of economic development theorists.

Which of the following does not belong?

• NAFTA

• Uruguay Round

• World Trade Organization

• None Tariff Barriers

Cost-benefit analysis of international trade

• is basically useless.

• is empirically intractable.

• focuses attention on conflicts of interest within countries.

• focuses attention on conflicts of interests between countries.