tbch01 - Chapter 1: Introduction Multiple Choice Questions...

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Chapter 1: Introduction Multiple Choice Questions 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 2. From 1959 to 2000, A. the U.S. economy roughly tripled in size. B. U.S. imports roughly tripled in size. C. the share of US Trade in the economy roughly tripled in size. D. U.S. Imports roughly tripled as compared to U.S. exports. E. U.S. exports roughly tripled in size. Answer: C 3. The United States is less dependent on trade than most other countries because A. the United States is a relatively large country. 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 4. Ancient theories of international economics from the 18 th and 19 th Centuries are: A. not relevant to current policy analysis. B. are only of moderate relevance in today's modern international economy. C. are highly relevant in today's modern international economy. D. are the only theories that actually relevant to modern international economy. E. are not well understood by modern mathematically oriented theorists. Answer: C 1
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An important insight of international trade theory is that when countries exchange goods and services one with the other it A. is always beneficial to both countries. B. is usually beneficial to both countries. C. is typically beneficial only to the low wage trade partner country . D. is typically harmful to the technologically lagging country. E. tends to create unemployment in both countries. Answer: B 6. If there are large disparities in wage levels between countries, then A. trade is likely to be harmful to both countries. B. trade is likely to be harmful to the country with the high wages. C. trade is likely to be harmful to the country with the low wages. D. trade is likely to be harmful to neither country. E. trade is likely to have no effect on either country. Answer: D 7. Benefits of international trade are limited to A. tangible goods. B. intangible goods. C. all goods but not services. D. services. E. None of the above. Answer: E 8. Attempts to explain the pattern of international trade A. have been a major focus of international economists. B. have proven to be hopeless. C. have proven to be a trivial exercise. D. have been the preoccupation of economic development theorists. E.
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This note was uploaded on 05/30/2011 for the course ECONOMICS 120 taught by Professor Dr.mohamed during the Spring '11 term at Faculty of English Commerce Ain Shams University.

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tbch01 - Chapter 1: Introduction Multiple Choice Questions...

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