Chapter 1 tmqt

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 1959 to 2000,

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

• U.S. imports roughly tripled in size

• the share of US Trade in the 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.

• 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

Ancient theories of international economics from the 18th and 19th Centuries are

• . not relevant to current policy analysis.

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

• are highly relevant in today's modern international economy.

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

• are not well understood by modern mathematically oriented theorists

An important insight of international trade theory is that when countries exchange goods and services one with the other it

• is always beneficial to both countries.

• is usually beneficial to both countries

• is typically beneficial only to the low wage trade partner country

• is typically harmful to the technologically lagging country.

• tends to create unemployment in 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.

. Benefits of international trade are limited to

• tangible goods.

• intangible goods.

• all goods but not services.

• services.

• . None of the above.

Attempts to explain the pattern of international trade

• have been a major focus of international economists.

• have proven to be hopeless.

• have proven to be a trivial exercise.

• have been the preoccupation of economic development theorists.

• None of the above

Which of the following does not belong?

• NAFTA

• Uruguay Round

• WTO

• None Tariff Barries

• None of the above

Cost-benefit analysis of international trade

• . is basically useless.

• is empirically intractable.

• focuses attention on conflicts of interest within countries.

• focuses attention on conflicts of interests between countries.

• E. None of the above.