Test Bank for International Economics 9th Edition by Krugman Chapter 3

 Test Bank for International  Test International Economics 9th Edition by Krugman Krugman (Sample 1) istorians of economic thought often describe !!!!!!!! "ritten by !!!!!!!! and published in !!!!!!!! as the #rst real e$position of an economic model% *

*

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 &) 'f the Balance of Trade' *a+id ume 1,,-

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 B) '.ealth of /ations' *a+id ume 1,0

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 2) '.ealth of /ations' &dam Smith 1,0

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 *) '.ealth of /ations' &dam Smith 1,,-

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 E) 'f the Balance of Trade' *a+id ume 1,0

3rom 19-4 to 5449 •

 &) the 6%S% economy roughly tripled in si7e%

•

 B) 6%S% imports roughly tripled in si7e%

•

 2) the share of 6S Trade in the economy roughly tripled in si7e%

•

 *) 6%S% Imports roughly tripled as compared to 6%S% e$ports%

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 E) 6%S% e$ports roughly tripled in si7e%

 The 6nited States is less dependent on trade than most other countries because *

•

 &) the 6nited States is a relati+ely large country "ith di+erse

resources% •

 B) the 6nited States is a 'Superpo"er%'

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 2) the military po"er of the 6nited States makes it less dependent

on anything% •

 *) the 6nited States in+ests in many other countries%

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 E) many countries in+est in the 6nited States%

&ncient theories of international economics from the 1th and 19th 2enturies are *

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 &) not rele+ant to current policy analysis%

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 B) are only of moderate rele+ance in today's modern international

economy% •

 2) are highly rele+ant in today's modern international economy%

•

 *) are the only theories that actually rele+ant to modern

international economy% •

 E) are not "ell understood by modern mathematically oriented

theorists% &n important insight of international trade theory is that "hen countries e$change goods and ser+ices one "ith the other it *

*

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 &) is al"ays bene#cial to both countries%

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 B) is usually bene#cial to both countries%

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 2) is typically bene#cial only to the lo" "age trade partner country%

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 *) is typically harmful to the technologically lagging country%

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 E) tends to create unemployment in both countries%

If there are large disparities in "age le+els bet"een countries then

*

*

•

 &) trade is likely to be harmful to both countries%

•

 B) trade is likely to be harmful to the country "ith the high "ages%

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 2) trade is likely to be harmful to the country "ith the lo" "ages%

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 *) trade is likely to be harmful to neither country%

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 E) trade is likely to ha+e no e8ect on either country%

Bene#ts of international trade are •

 &) limited to tangible goods%

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 B) limited to intangible goods%

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 2) limited to all goods but not ser+ices%

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 *) limited to ser+ices%

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 E) not limited to any of the abo+e categories%

.hich of the follo"ing does not belong

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 &) /&3T&

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 B) 6ruguay :ound

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 2) .orld Trade rgani7ation

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 *) non;tari8 barriers

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 E) ma
International economics !!!!!!!! use the same fundamental methods of analysis as other branches of economics because !!!!!!!!% *

•

 &) does not the le+el of comple$ity of international issues is

uni=ue •

 B) does not the interactions associated "ith international

economic relations is highly mathematical •

 2) does not international economics takes a di8erent perspecti+e

on economic issues •

 *) does not international economic policy re=uires cooperation

"ith other countries

•

 E) does the moti+es and beha+ior of indi+iduals are the same in

international trade as they are in domestic transactions *

Because the 2onstitution forbids restraints on interstate trade •

 &) the 6%S% may not impose tari8s on imports from /&3T&

countries% •

 B) the 6%S% may not a8ect the international +alue of the > 6%S%

•

 2) the 6%S% may not put restraints on foreign in+estments in

2alifornia if it in+ol+es a #nancial intermediary in /e" ?ork State% •

 *) the 6%S% may not impose e$port duties%

•

 E) the 6%S% may not disrupt commerce bet"een 3lorida and a"aii%

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