ECO201 - chap 1 Exam Questions
and Answers 100% Pass
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 - ✔✔E
From 1960 to 2012
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 global 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. - ✔✔C
EMILY CHARLENE © 2025, ALL RIGHTS RESERVED 1
,3) The United States is less dependent on trade than most other countries because
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. - ✔✔A
4) Theories of international economics from the 18th and 19th Centuries are
A) not relevant to current policy analysis.
B) only of moderate relevance in today's modern international economy.
C) highly relevant in today's modern international economy.
D) the only theories that actually relevant to modern international economy.
E) not well understood by modern mathematically oriented theorists. - ✔✔C
5) An important insight of international trade theory is that when two countries engage
in voluntary trade
A) one country always benefits at the expense of the other.
B) it is almost always beneficial to both countries.
C) it only benefits the low wage country.
EMILY CHARLENE © 2025, ALL RIGHTS RESERVED 2
, D) it only benefits the high wage country.
E) it is almost never beneficial to both countries. - ✔✔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. - ✔✔D
7) The benefits of international trade are derived from trade in
A) tangible goods only.
B) intangible goods only.
C) goods but not services.
D) services but not goods.
E) anything of value. - ✔✔E
8) Which of the following does NOT belong?
A) NAFTA
B) Uruguay Round
EMILY CHARLENE © 2025, ALL RIGHTS RESERVED 3
and Answers 100% Pass
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 - ✔✔E
From 1960 to 2012
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 global 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. - ✔✔C
EMILY CHARLENE © 2025, ALL RIGHTS RESERVED 1
,3) The United States is less dependent on trade than most other countries because
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. - ✔✔A
4) Theories of international economics from the 18th and 19th Centuries are
A) not relevant to current policy analysis.
B) only of moderate relevance in today's modern international economy.
C) highly relevant in today's modern international economy.
D) the only theories that actually relevant to modern international economy.
E) not well understood by modern mathematically oriented theorists. - ✔✔C
5) An important insight of international trade theory is that when two countries engage
in voluntary trade
A) one country always benefits at the expense of the other.
B) it is almost always beneficial to both countries.
C) it only benefits the low wage country.
EMILY CHARLENE © 2025, ALL RIGHTS RESERVED 2
, D) it only benefits the high wage country.
E) it is almost never beneficial to both countries. - ✔✔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. - ✔✔D
7) The benefits of international trade are derived from trade in
A) tangible goods only.
B) intangible goods only.
C) goods but not services.
D) services but not goods.
E) anything of value. - ✔✔E
8) Which of the following does NOT belong?
A) NAFTA
B) Uruguay Round
EMILY CHARLENE © 2025, ALL RIGHTS RESERVED 3
