Question 1

It is argued that if a rich high wage country such as the United States were to expand trade with a relatively poor and low wage country such as Mexico,then U.S.industry would migrate south,and U.S.wages would fall to the level of Mexico's.What do you think about this argument?

Accepted Answer

The student may think anything...

Question 2

Trade theorists have proven that the gains from international trade

Accepted Answer

A)  must raise the economic welfare of every country engaged in trade.
B)  must raise the economic welfare of everyone in every country engaged in trade.
C)  must harm owners of "specific" factors of production.
D)  will always help "winners" by an amount exceeding the losses of "losers."
E)  usually outweigh the benefits of protectionist policies.F) A) and C)
G) C) and D)

Question 3

Cost-benefit analysis of international trade

Accepted Answer

A)  is basically useless.
B)  is empirically intractable.
C)  focuses attention primarily on conflicts of interest within countries.
D)  focuses attention on conflicts of interest between countries.
E)  never leads to government intervention in international trade.F) B) and C)
G) C) and D)

Question 4

The insight that patterns of trade are primarily determined by international differences in labor productivity was first proposed by

Accepted Answer

A)  Adam Smith.
B)  David Hume.
C)  David Ricardo.
D)  Eli Heckscher.
E)  Lerner and Samuelson.F) All of the above
G) A) and B)

Question 5

After World War II,the United States has pursued a broad policy of

Accepted Answer

A)  strengthening "Fortress America" protectionism.
B)  removing barriers to international trade.
C)  isolating Iran and other members of the "axis of evil."
D)  protecting the U.S.from the economic impact of oil producers.
E)  restricting trade of manufactured goods.F) C) and E)
G) B) and E)

Question 6

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

Accepted Answer

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 not,international economic policy requires cooperation with other countries
E)  does,the motives and behavior of individuals are the same in international trade as they are in domestic transactionsF) B) and E)
G) A) and D)

Question 7

Since 1994,trade rules have been enforced by

Accepted Answer

A)  the WTO.
B)  the G10.
C)  the GATT.
D)  The U.S.Congress.
E)  the European Union.F) B) and D)
G) A) and B)

Question 8

How are the patterns of international trade,that is the pattern of what different countries export and import,explained?

Accepted Answer

Climate explains why Brazil exports coff...

Question 9

International capital markets experience a kind of risk not faced in domestic capital markets,namely

Accepted Answer

A)  "economic meltdown" risk.
B)  Flood and hurricane crisis risk.
C)  the risk of unexpected downgrading of assets by Standard and Poor.
D)  the risk of exchange rate fluctuations.
E)  the risk of political upheaval.F) A) and B)
G) D) and E)

Question 10

Which of the following does NOT belong?

Accepted Answer

A)  NAFTA
B)  Uruguay Round
C)  World Trade Organization
D)  non-tariff barriers
E)  major free trade agreements of the 1990sF) C) and D)
G) A) and C)

Question 11

The international financial crisis of 2007 was the result of

Accepted Answer

A)  failure of the Euro currency.
B)  runaway inflation in the U.S.
C)  a deep global recession.
D)  the collapse of global currency markets.
E)  defaults on U.S.mortgage-backed securities.F) A) and B)
G) A) and C)

Question 12

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

Accepted Answer

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.F) B) and C)
G) B) and D)

Question 13

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

Accepted Answer

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.F) B) and D)
G) All of the above

Question 14

A fundamental problem in international economics is how to produce

Accepted Answer

A)  a perfect degree of monetary harmony.
B)  an acceptable degree of harmony among the international trade policies of different countries.
C)  a world government that can harmonize trade and monetary policies
D)  a counter-cyclical monetary policy so that all countries will not be adversely affected by a financial crisis in one country.
E)  a worldwide form of currency.F) B) and D)
G) A) and B)

Question 15

For almost 70 years international trade policies have been governed

Accepted Answer

A)  by the World Trade Organization.
B)  by the International Monetary Fund.
C)  by the World.
D)  by an international treaty known as the General Agreement on Tariffs and Trade (GATT) .
E)  by the North American Free Trade Agreement (NAFT
A)  .F) B) and E)
G) A) and B)

Question 16

International trade theory implies that international trade is beneficial to all trading countries.However,casual observation leads to the conclusion that official obstruction of international trade flows is widespread.How might you reconcile these two facts?

Accepted Answer

This question is meant to allo...

Question 17

Because the Constitution forbids restraints on interstate trade

Accepted Answer

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.F) C) and D)
G) A) and D)

Exam 1: Introduction

After World War II,the United States has pursued a broad policy of

Correct Answer
verified

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

Correct Answer
verified

The insight that patterns of trade are primarily determined by international differences in labor productivity was first proposed by

Correct Answer
verified

Cost-benefit analysis of international trade

Correct Answer
verified

Trade theorists have proven that the gains from international trade

Correct Answer
verified

International capital markets experience a kind of risk not faced in domestic capital markets,namely

Correct Answer
verified

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

Correct Answer
verified

How are the patterns of international trade,that is the pattern of what different countries export and import,explained?

Correct Answer
verified
Climate explains why Brazil exports coff...
View Answer

It is argued that if a rich high wage country such as the United States were to expand trade with a relatively poor and low wage country such as Mexico,then U.S.industry would migrate south,and U.S.wages would fall to the level of Mexico's.What do you think about this argument?

Correct Answer
verified
The student may think anything...
View Answer

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

Correct Answer
verified

Which of the following does NOT belong?

Correct Answer
verified

Since 1994,trade rules have been enforced by

Correct Answer
verified

For almost 70 years international trade policies have been governed

Correct Answer
verified

International trade theory implies that international trade is beneficial to all trading countries.However,casual observation leads to the conclusion that official obstruction of international trade flows is widespread.How might you reconcile these two facts?

Correct Answer
verified
This question is meant to allo...
View Answer

Because the Constitution forbids restraints on interstate trade

Correct Answer
verified

The international financial crisis of 2007 was the result of

Correct Answer
verified

A fundamental problem in international economics is how to produce

Correct Answer
verified

Exam 1: Introduction

After World War II,the United States has pursued a broad policy of

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The insight that patterns of trade are primarily determined by international differences in labor productivity was first proposed by

Correct AnswerverifiedShow Answer

Cost-benefit analysis of international trade

Correct AnswerverifiedShow Answer

Trade theorists have proven that the gains from international trade

Correct AnswerverifiedShow Answer

International capital markets experience a kind of risk not faced in domestic capital markets,namely

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

How are the patterns of international trade,that is the pattern of what different countries export and import,explained?

Correct AnswerverifiedClimate explains why Brazil exports coff...View AnswerShow Answer

It is argued that if a rich high wage country such as the United States were to expand trade with a relatively poor and low wage country such as Mexico,then U.S.industry would migrate south,and U.S.wages would fall to the level of Mexico's.What do you think about this argument?

Correct AnswerverifiedThe student may think anything...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following does NOT belong?

Correct AnswerverifiedShow Answer

Since 1994,trade rules have been enforced by

Correct AnswerverifiedShow Answer

For almost 70 years international trade policies have been governed

Correct AnswerverifiedShow Answer

International trade theory implies that international trade is beneficial to all trading countries.However,casual observation leads to the conclusion that official obstruction of international trade flows is widespread.How might you reconcile these two facts?

Correct AnswerverifiedThis question is meant to allo...View AnswerShow Answer

Because the Constitution forbids restraints on interstate trade

Correct AnswerverifiedShow Answer

The international financial crisis of 2007 was the result of

Correct AnswerverifiedShow Answer

A fundamental problem in international economics is how to produce

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified
Climate explains why Brazil exports coff...
View Answer

Correct Answer
verified
The student may think anything...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
This question is meant to allo...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified