International Economics: Theory and Policy 12th Global Edition by Paul Krugman test bank
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
5) 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.
Answer: A
Difficulty: Easy
AACSB: Application of knowledge
6) 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.
Answer: C
Difficulty: Easy
AACSB: Application of knowledge
7) International economics ________ use the same fundamental methods of analysis as other branches of economics, because ________.
A) does not; the level of complexity of international issues is unique
B) does not; the interactions associated with international economic relations is highly mathematical
C) does not; international economics takes a different perspective on economic issues
D) does; international economists must reach an agreement with other economists on every economic issue
E) does; the motives and behavior of individuals are the same in international trade as they are in domestic transactions
Answer: E
Difficulty: Easy
AACSB: Application of knowledge
8) Because the Constitution forbids restraints on interstate trade
A) the U.S. may not impose tariffs on imports from NAFTA countries.
B) the U.S. may not affect the international value of the $ U.S.
C) the U.S. may not put restraints on foreign investments in California if it involves a financial intermediary in New York State.
D) the U.S. may not impose export duties.
E) the U.S. may not disrupt commerce between Florida and Hawaii.
Answer: E
Difficulty: Easy
AACSB: Application of knowledge
9) An important insight of international economics is that when countries sell goods and services to each other,
A) the exchange is almost always mutually beneficial.
B) one country always benefits at the expense of the other.
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.
Answer: A
Difficulty: Easy
AACSB: Application of knowledge
10) "Trade is generally harmful if there are large disparities between countries in wages."
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
5) 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.
Answer: A
Difficulty: Easy
AACSB: Application of knowledge
6) 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.
Answer: C
Difficulty: Easy
AACSB: Application of knowledge
7) International economics ________ use the same fundamental methods of analysis as other branches of economics, because ________.
A) does not; the level of complexity of international issues is unique
B) does not; the interactions associated with international economic relations is highly mathematical
C) does not; international economics takes a different perspective on economic issues
D) does; international economists must reach an agreement with other economists on every economic issue
E) does; the motives and behavior of individuals are the same in international trade as they are in domestic transactions
Answer: E
Difficulty: Easy
AACSB: Application of knowledge
8) Because the Constitution forbids restraints on interstate trade
A) the U.S. may not impose tariffs on imports from NAFTA countries.
B) the U.S. may not affect the international value of the $ U.S.
C) the U.S. may not put restraints on foreign investments in California if it involves a financial intermediary in New York State.
D) the U.S. may not impose export duties.
E) the U.S. may not disrupt commerce between Florida and Hawaii.
Answer: E
Difficulty: Easy
AACSB: Application of knowledge
9) An important insight of international economics is that when countries sell goods and services to each other,
A) the exchange is almost always mutually beneficial.
B) one country always benefits at the expense of the other.
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.
Answer: A
Difficulty: Easy
AACSB: Application of knowledge
10) "Trade is generally harmful if there are large disparities between countries in wages."