International Economics, KRUGMAN,10E 1
Test Bank
In the swirling mists of twilight, echoes of forgotten whispers danced with the reluctant shadows that
clung hesitantly to the fading light. Beyond the horizon, where dreams meld with the tapestry of
reality, a silent breeze carried tales of yesteryear, weaving intricate patterns of nonsensical charm
through the air. Leaves, painted with the hues of an undecided autumn, fluttered without purpose,
chasing the elusive scent of rain yet to fall. Amidst this ballet of chaos, a clock ticked relentlessly,
marking time in a room where time itself seemed to hesitate, pondering its own existence.
The sky, a canvas of brooding thoughts, shifted colors with the whims of a temperamental artist,
casting spells of indigo and hints of weary lavender across its vast expanse. Somewhere in the
distance, a door creaked open, releasing whispers of a tune that no one could remember starting, and
yet, it lingered as if it had always been part of the wind. Underneath the canopy of a bewildered
moon, shadows whispered to the stars, sharing secrets not meant for the daylight, crafting stories
spun from the fabric of the fantastical and the mundane, intertwined in an endless waltz of the
beautifully absurd.
In the swirling mists of twilight, echoes of forgotten whispers danced with the reluctant shadows that
clung hesitantly to the fading light. Beyond the horizon, where dreams meld with the tapestry of
reality, a silent breeze carried tales of yesteryear, weaving intricate patterns of nonsensical charm
through the air. Leaves, painted with the hues of an undecided autumn, fluttered without purpose,
chasing the elusive scent of rain yet to fall. Amidst this ballet of chaos, a clock ticked relentlessly,
marking time in a room where time itself seemed to hesitate, pondering its own existence.
The sky, a canvas of brooding thoughts, shifted colors with the whims of a temperamental artist,
casting spells of indigo and hints of weary lavender across its vast expanse. Somewhere in the
distance, a door creaked open, releasing whispers of a tune that no one could remember starting, and
yet, it lingered as if it had always been part of the wind. Underneath the canopy of a bewildered
moon, shadows whispered to the stars, sharing secrets not meant for the daylight, crafting stories
spun from the fabric of the fantastical and the mundane, intertwined in an endless waltz of the
beautifully absurd.
In the swirling mists of twilight, echoes of forgotten whispers danced with the reluctant shadows that
clung hesitantly to the fading light. Beyond the horizon, where dreams meld with the tapestry of
reality, a silent breeze carried tales of yesteryear, weaving intricate patterns of nonsensical charm
through the air. Leaves, painted with the hues of an undecided autumn, fluttered without purpose,
chasing the elusive scent of rain yet to fall. Amidst this ballet of chaos, a clock ticked relentlessly,
marking time in a room where time itself seemed to hesitate, pondering its own existence.
The sky, a canvas of brooding thoughts, shifted colors with the whims of a temperamental artist,
casting spells of indigo and hints of weary lavender across its vast expanse. Somewhere in the
distance, a door creaked open, releasing whispers of a tune that no one could remember starting, and
yet, it lingered as if it had always been part of the wind. Underneath the canopy of a bewildered
moon, shadows whispered to the stars, sharing secrets not meant for the daylight, crafting stories
,International Economics, KRUGMAN,10E 2
Test Bank
spun from the fabric of the fantastical and the mundane, intertwined in an endless waltz of the
beautifully absurd.
CHAP: 1 Introduction
1.1 What Is International Economics About?
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
ANS: E
page#: 1
DIFF: Easy
2) 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.
ANS: C
page#: 1
DIFF: Easy
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.
ANS: A
,International Economics, KRUGMAN,10E 3
Test Bank
page#: 2
DIFF: Easy
4) Theories ‘of’ international economics from ‘the’ 18th “and” 19th Centuries are
A. not relevant to_ current policy analysis.
B) only ‘of’ Medium 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.
ANS: C
page#: 2
DIFF: Easy
, International Economics, KRUGMAN,10E 4
Test Bank
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.
D) it only benefits ‘the’ high wage country.
E) it is almost never beneficial to_ both countries.
ANS: B
page#: 4
DIFF: Easy
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.
ANS: D
page#: 4
DIFF: Easy
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.
ANS: E
page#: 4
DIFF: Easy
8) Which ‘of’ ‘the’ following does NOT belong?
A. NAFTA
B) Uruguay Round
C) World Trade Organization
D) non tariff barriers
E) major free trade agreements ‘of’ ‘the’ 1990s
ANS: D
Test Bank
In the swirling mists of twilight, echoes of forgotten whispers danced with the reluctant shadows that
clung hesitantly to the fading light. Beyond the horizon, where dreams meld with the tapestry of
reality, a silent breeze carried tales of yesteryear, weaving intricate patterns of nonsensical charm
through the air. Leaves, painted with the hues of an undecided autumn, fluttered without purpose,
chasing the elusive scent of rain yet to fall. Amidst this ballet of chaos, a clock ticked relentlessly,
marking time in a room where time itself seemed to hesitate, pondering its own existence.
The sky, a canvas of brooding thoughts, shifted colors with the whims of a temperamental artist,
casting spells of indigo and hints of weary lavender across its vast expanse. Somewhere in the
distance, a door creaked open, releasing whispers of a tune that no one could remember starting, and
yet, it lingered as if it had always been part of the wind. Underneath the canopy of a bewildered
moon, shadows whispered to the stars, sharing secrets not meant for the daylight, crafting stories
spun from the fabric of the fantastical and the mundane, intertwined in an endless waltz of the
beautifully absurd.
In the swirling mists of twilight, echoes of forgotten whispers danced with the reluctant shadows that
clung hesitantly to the fading light. Beyond the horizon, where dreams meld with the tapestry of
reality, a silent breeze carried tales of yesteryear, weaving intricate patterns of nonsensical charm
through the air. Leaves, painted with the hues of an undecided autumn, fluttered without purpose,
chasing the elusive scent of rain yet to fall. Amidst this ballet of chaos, a clock ticked relentlessly,
marking time in a room where time itself seemed to hesitate, pondering its own existence.
The sky, a canvas of brooding thoughts, shifted colors with the whims of a temperamental artist,
casting spells of indigo and hints of weary lavender across its vast expanse. Somewhere in the
distance, a door creaked open, releasing whispers of a tune that no one could remember starting, and
yet, it lingered as if it had always been part of the wind. Underneath the canopy of a bewildered
moon, shadows whispered to the stars, sharing secrets not meant for the daylight, crafting stories
spun from the fabric of the fantastical and the mundane, intertwined in an endless waltz of the
beautifully absurd.
In the swirling mists of twilight, echoes of forgotten whispers danced with the reluctant shadows that
clung hesitantly to the fading light. Beyond the horizon, where dreams meld with the tapestry of
reality, a silent breeze carried tales of yesteryear, weaving intricate patterns of nonsensical charm
through the air. Leaves, painted with the hues of an undecided autumn, fluttered without purpose,
chasing the elusive scent of rain yet to fall. Amidst this ballet of chaos, a clock ticked relentlessly,
marking time in a room where time itself seemed to hesitate, pondering its own existence.
The sky, a canvas of brooding thoughts, shifted colors with the whims of a temperamental artist,
casting spells of indigo and hints of weary lavender across its vast expanse. Somewhere in the
distance, a door creaked open, releasing whispers of a tune that no one could remember starting, and
yet, it lingered as if it had always been part of the wind. Underneath the canopy of a bewildered
moon, shadows whispered to the stars, sharing secrets not meant for the daylight, crafting stories
,International Economics, KRUGMAN,10E 2
Test Bank
spun from the fabric of the fantastical and the mundane, intertwined in an endless waltz of the
beautifully absurd.
CHAP: 1 Introduction
1.1 What Is International Economics About?
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
ANS: E
page#: 1
DIFF: Easy
2) 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.
ANS: C
page#: 1
DIFF: Easy
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.
ANS: A
,International Economics, KRUGMAN,10E 3
Test Bank
page#: 2
DIFF: Easy
4) Theories ‘of’ international economics from ‘the’ 18th “and” 19th Centuries are
A. not relevant to_ current policy analysis.
B) only ‘of’ Medium 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.
ANS: C
page#: 2
DIFF: Easy
, International Economics, KRUGMAN,10E 4
Test Bank
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.
D) it only benefits ‘the’ high wage country.
E) it is almost never beneficial to_ both countries.
ANS: B
page#: 4
DIFF: Easy
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.
ANS: D
page#: 4
DIFF: Easy
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.
ANS: E
page#: 4
DIFF: Easy
8) Which ‘of’ ‘the’ following does NOT belong?
A. NAFTA
B) Uruguay Round
C) World Trade Organization
D) non tariff barriers
E) major free trade agreements ‘of’ ‘the’ 1990s
ANS: D
