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International Economics: Theory and Policy Sixth Edition Krugman and Obstfeld Dr. Mitchell Kellman The City College of The City University of New York, and The Graduate Center, The City University of New York

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TEST BANK To accompany International Economics: Theory and Policy Sixth Edition Krugman and Obstfeld Dr. Mitchell Kellman The City College of The City University of New York, and The Graduate ... Center, The City University of New York And Dr. Yochanan Shachmurove The City College of The City University of New York, and The University of PennsylvaniaContents Page Chapter 1 Introduction 1 Chapter 2 Labor Productivity and Comparative Advantage: The Ricardian Model 14 Chapter 3 Specific Factors and Income Distribution 28 Chapter 4 Resources and Trade: The Heckscher-Ohlin Model 41 Chapter 5 The Standard Trade Model 56 Chapter 6 Economies of Scale, imperfect Competition, and International Trade 70 Chapter 7 International Factor Movements 82 Chapter 8 The Instruments of Trade Policy 96 Chapter 9 The Political Economy of Trade Policy 108 Chapter 10 Trade Policy in Developing Countries 121 Chapter 11 Strategic Trade Policy in Advanced Countries 133 Chapter 12 National Income Accounting and the Balance of Payments 147 Chapter 13 Exchange Rates and the Foreign Exchange Market: An Asset Approach 164 Chapter 14 Money, Interest Rates, and Exchange Rates 189 Chapter 15 Price Levels and Exchange Rate in the Long Run 210 Chapter 16 Output and Exchange Rate in the Short Run 237 Chapter 17 Fixed Exchange Rates and Foreign Exchange Intervention 256 Chapter 18 The International Monetary System, 1870 – 1973 278 Chapter 19 Macroeconomic Policy and Coordination Under Floating Exchange Rates 302 Chapter 20 Optimum Currency Areas and the European Experience 324 Chapter 21 The Global Capital Market: Performance and Policy Problems 346 Chapter 22 Developing Countries: Growth, Crisis, and Reform 3701 Chapter 1: Introduction Multiple Choice Questions 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 Answer: E 2. From 1959 to 2000, 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 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. Answer: C [Show More]

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