A comprehensive economics textbook covering international trade theory, exchange rates, open-economy macroeconomics, trade policy, and global financial systems. The 7th edition presents both theoretical foundations and real-world policy applications with

Stuvia.com - The Marketplace to Buy and Sell your Study Material




TESTBANKFOR gl gl




INTERNATIONALECONOMICS g
l




gl THEORY AND POLICY 7TH
gl gl gl




gl




EDITION BY KRUGMAN AND
gl gl gl




gl OBSTFELD

, Stuvia.com - The Marketplace to Buy and Sell your Study Material




TESTBANK gl




To accompany gl




InternationalEconomics:TheoryandPolicy Sixth
gl gl gl gl gl




Edition gl




KrugmanandObstfeld gl gl




Dr.MitchellKellman gl gl




The City College of The City University of New
gl gl gl gl gl gl gl gl




York, and gl gl




TheGraduateCenter,TheCity University ofNew York
gl gl gl gl gl gl gl gl




And

Dr.YochananShachmurove
gl gl




The City College of The City University of New
gl gl gl gl gl gl gl gl




York, and gl gl




TheUniversity ofPennsylvania
gl gl gl




Downloaded by Charlie Teller ()
gl gl gl gl




Downloaded by: Ariah |
Distribution of this document is illegal

, Stuvia.com - The Marketplace to Buy and Sell your Study Material




Contents Page

Chapter 1
gl Introduction 1
Chapter 2
gl Labor Productivity and Comparative Advantage: The Ricardian Model
gl gl gl gl gl gl gl 14
Chapter 3
gl Specific Factors and Income Distribution
gl gl gl gl 28
Chapter 4
gl Resources and Trade: The Heckscher-Ohlin Model gl gl gl gl gl 41
Chapter 5
gl The Standard Trade Model
gl gl gl 56
Chapter 6
gl Economies of Scale, imperfect Competition, and International Trade
gl gl gl gl gl gl gl 70
Chapter 7
gl International Factor Movements gl gl 82
Chapter 8
gl The Instruments of Trade Policy
gl gl gl gl 96
Chapter 9
gl The Political Economy of Trade Policy
gl gl gl gl gl 108
Chapter 10
gl Trade Policy in Developing Countries
gl gl gl gl 121
Chapter 11
gl Strategic Trade Policy in Advanced Countries
gl gl gl gl gl 133
Chapter 12
gl National Income Accounting and the Balance of Payments
gl gl gl gl gl gl gl 147
Chapter 13
gl Exchange Rates and the Foreign Exchange Market:
gl gl gl gl gl gl




An Asset Approach
gl gl 164
Chapter 14
gl Money, Interest Rates, and Exchange Rates
gl gl gl gl gl 189
Chapter 15
gl Price Levels and Exchange Rate in the Long Run
gl gl gl gl gl gl gl gl 210
Chapter 16
gl Output and Exchange Rate in the Short Run
gl gl gl gl gl gl gl 237
Chapter 17
gl Fixed Exchange Rates and Foreign Exchange Intervention
gl gl gl gl gl gl 256
Chapter 18
gl The International Monetary System, 1870 – 1973
gl gl gl gl gl gl 278
Chapter 19
gl Macroeconomic Policy and Coordination Under gl gl gl gl




Floating Exchange Rates gl gl 302
Chapter 20
gl Optimum Currency Areas and the European Experience
gl gl gl gl gl gl 324
Chapter 21
gl The Global Capital Market: Performance and Policy Problems
gl gl gl gl gl gl gl 346
Chapter 22
gl Developing Countries: Growth, Crisis, and Reform gl gl gl gl gl 370




Downloaded by Charlie Teller () gl gl gl gl




Downloaded by: Ariah |
Distribution of this document is illegal

, Stuvia.com - The Marketplace to Buy and Sell your Study Material




Chapter 1: Introduction
gl g l




MultipleChoiceQuestions
gl gl gl




1. Historians of economic thought often describe gl written by
gl gl gl gl gl gl gl




and published in
gl as the first real exposition of an economic model.
gl gl gl gl gl gl gl gl gl gl




A. "Of the Balance of Trade,” David Hume, 1776 gl gl gl gl gl gl gl




B. "Wealth of Nations," David Hume, 1758 gl gl gl gl gl




C. "Wealth of Nations," Adam Smith, 1758 gl gl gl gl gl




D. "Wealth of Nations," Adam Smith, 1776 gl gl gl gl gl




E. "Of the Balance of Trade," David Hume, 1758 gl gl gl gl gl gl gl




Answer: E
gl gl




2. From 1959 to 2000, gl gl gl




A. the U.S. economy roughly tripled in size. gl gl gl gl gl gl




B. U.S. imports roughly tripled in size. gl gl gl gl gl




C. the share of US Trade in the economy roughly tripled in size.
gl gl gl gl gl gl gl gl gl gl gl




D. U.S. Imports roughly tripled as compared to U.S. exports.
gl gl gl gl gl gl gl gl




E. U.S. exports roughly tripled in size. gl gl gl gl gl




Answer: C gl




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




A. the United States is a relatively large country. gl gl gl gl gl gl gl




B. the United States is a "Superpower.". gl gl gl gl gl




C. the military power of the United States makes it less dependent on
gl gl gl gl gl gl gl gl gl gl gl




anything. gl




D. the United States invests in many other countries gl gl gl gl gl gl gl




E. many countries invest in the United States. gl gl gl gl gl gl




Answer: A gl




4. Ancient theories of international economics from the 18th and 19th Centuries are:
gl gl gl gl gl gl gl gl gl gl gl




A. not relevant to current policy analysis. gl gl gl gl gl




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




C. are highly relevant in today's modern international economy.
gl gl gl gl gl gl gl




D. are the only theories that actually relevant to modern international
gl gl gl gl gl gl gl gl gl




economy. gl




E. are not well understood by modern mathematically oriented theorists.
gl gl gl gl gl gl gl gl




Answer: C gl




1


Downloaded by Charlie Teller () gl gl gl gl




Downloaded by: Ariah |
Distribution of this document is illegal