Type:
Test Bank
Resource:
International Economics
Edition:
11th Edition
Author(s):
Dominick Salvatore
TEST BANK Leonie L. Stone, Ph.D. State University of New York at Geneseo
to accompany
International Economics Eleventh Edition Dominick Salvatore Fordham University
Salvatore’s International Economics – 11th Edition
Test Bank
File: Ch01; Chapter 1: Introduction
Multiple Choice
1. Which of the following products are not produced at all in the United States? a. Coffee, tea, cocoa b. steel, copper, aluminum c. petroleum, coal, natural gas d. typewriters, computers, airplanes Ans: a Level: Easy Heading: The Globalization of the World Economy
2. International trade is most important to the standard of living of: a. the United States b. Switzerland c. Germany d. England Ans: b Level: Easy Heading: International Trade and a Nation’s Standard of Living
3. Over time, the economic interdependence of nations has: a. grown b. diminished c. remained unchanged d. cannot say Ans: a Level: Easy Heading: International Trade and a Nation’s Standard of Living
4. A rough measure of the degree of economic interdependence of a nation is given by:
(ch01(2))
1-1
Copyright © 2010 John Wiley & Sons, Inc.
Salvatore’s International Economics – 11th Edition
Test Bank
a. the size of the nations' population b. the percentage of its population to its GDP c. the percentage of a nation's imports and exports to its GDP d. all of the above Ans: c Level: Easy Heading: International Trade and a Nation’s Standard of Living
5. Economic interdependence is greater for: a. small nations b. large nations c. developed nations d. developing nations Ans: a Level: Easy Heading: International Trade and a Nation’s Standard of Living
6. The gravity model of international trade predicts that trade between two nations is larger a. the larger the two nations b. the closer the nations c. the more open are the two nations d. all of the above Ans: d Level: Medium Heading: The International Flow of Goods, Services, Labor and Capital
7. International economics deals with: a. the flow of goods, services, and payments among nations b. policies directed at regulating the flow of goods, services, and payments c. the effects of policies on the welfare of the nation d. all of the above Ans: d Level: Easy Heading: International Economic Theories and Policies
(ch01(2))
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Copyright © 2010 John Wiley & Sons, Inc.
Salvatore’s International Economics – 11th Edition
Test Bank
8. International trade theory refers to: a. the microeconomic aspects of international trade b. the macroeconomic aspects of international trade c. open economy macroeconomics or international finance d. all of the above Ans: a Level: Easy Heading: International Economic Theories and Policies
9. Which of the following is not the subject matter of international finance? a. foreign exchange markets b. the balance of payments c. the basis and the gains from trade d. policies to adjust balance of payments disequilibria Ans: c Level: Easy Heading: International Economic Theories and Policies
10. Economic theory: a. seeks to explain economic events b. seeks to predict economic events c. abstracts from the many detail that surrounds an economic event d. all of the above Ans: d Level: Medium Heading: International Economic Theories and Policies
11. Which of the following is not an assumption generally made in the study of international economics? a. two nations b. two commodities c. perfect international mobility of factors d. two factors of production Ans: c Level: Medium
(ch01(2))
1-3
Copyright © 2010 John Wiley & Sons, Inc.