International Economics 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 1950 to 2015

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

• U.S. imports roughly tripled in size.

• the share of U.S. trade in the global economy roughly tripled in size.

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

• U.S. exports roughly tripled in size.

The United States is less dependent on trade than most other countries because

• the United States is a relatively large country with diverse resources.

• the United States is a "Superpower."

• the military power of the United States makes it less dependent on anything.

• the United States invests in many other countries.

• many countries invest in the United States.

Theories of international economics from the 18th and 19th centuries are

• not relevant to current policy analysis.

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

• highly relevant in today's modern international economy.

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

• not well understood by modern mathematically oriented theorists.

An important insight of international trade theory is that when two countries engage in voluntary trade

• one country always benefits at the expense of the other.

• it is almost always beneficial to both countries.

• it only benefits the low wage country.

• it only benefits the high wage country.

• it is almost never beneficial to 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.

The benefits of international trade are derived from trade in

• tangible goods only.

• intangible goods only.

• goods but not services.

• services but not goods.

• anything of value.

Which of the following does NOT belong?

• NAFTA

• Uruguay Round

• World Trade Organization

• non-tariff barriers

• major free trade agreements of the 1990s

International economics ________ use the same fundamental methods of analysis as other branches of economics, because ________.

• does not, the level of complexity of international issues is unique

• does not, the interactions associated with international economic relations is highly mathematical

• does not, international economics takes a different perspective on economic issues

• does not, international economic policy requires cooperation with other countries

• does, the motives and behavior of individuals are the same in international trade as they are in domestic transactions

Because the Constitution forbids restraints on interstate trade

• the U.S. may not impose tariffs on imports from NAFTA countries.

• the U.S. may not affect the international value of the $ U.S.

• the U.S. may not put restraints on foreign investments in California if it involves a financial intermediary in New York State.

• the U.S. may not impose export duties.

• the U.S. may not disrupt commerce between Florida and Hawaii.