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978-0134519579 Chapter 1
Chapter 1 Introduction ■ Chapter Organization What Is International Economics About? The Gains from Trade. The Pattern of Trade. How Much Trade? Balance of Payments. Exchange Rate Determination. International Policy Coordination. The International Capital Market. International Economics: Trade and Money […]
978-0134519579 Chapter 10
Chapter 10 The Political Economy of Trade Policy ◼ Chapter Organization The Case for Free Trade Free Trade and Efficiency Additional Gains from Free Trade Rent Seeking Political Argument for Free Trade National Welfare Arguments against Free Trade The Terms […]
978-0134519579 Chapter 11
Chapter 11 Trade Policy in Developing Countries ■ Chapter Organization Import-Substituting Industrialization. The Infant Industry Argument. Promoting Manufacturing Through Protectionism. Case Study: Mexico Abandons Import-Substituting Industrialization. Results of Favoring Manufacturing: Problems of Import-Substituting Industrialization. Trade Liberalization since 1985. Trade and […]
978-0134519579 Chapter 12
Chapter 12 Controversies in Trade Policy ■ Chapter Organization Sophisticated Arguments for Activist Trade Policy. Technology and Externalities. Imperfect Competition and Strategic Trade Policy. Box: A Warning from Intel’s Founder. Case Study: When the Chips Were Up. Globalization and Low-Wage […]
978-0134519579 Chapter 13
Chapter 13 National Income Accounting and the Balance of Payments ■ Chapter Organization The National Income Accounts. National Product and National Income. Capital Depreciation and International Transfers. Gross Domestic Product. National Income Accounting for an Open Economy. Consumption. Investment. Government […]
978-0134519579 Chapter 14
Chapter 14 Exchange Rates and the Foreign Exchange Market: An Asset Approach ■ Chapter Organization Exchange Rates and International Transactions. Domestic and Foreign Prices. Exchange Rates and Relative Prices. The Foreign Exchange Market. The Actors. Box: Exchange Rates, Auto Prices, […]
978-0134519579 Chapter 15
Chapter 15 Money, Interest Rates, and Exchange Rates ■ Chapter Organization Money Defined: A Brief Review. Money as a Medium of Exchange. Money as a Unit of Account. Money as a Store of Value. What Is Money? How the Money […]
978-0134519579 Chapter 16
Chapter 16 Price Levels and the Exchange Rate in the Long Run ■ Chapter Organization The Law of One Price. Purchasing Power Parity. The Relationship between PPP and the Law of One Price. Absolute PPP and Relative PPP. A Long-Run […]
978-0134519579 Chapter 17
Chapter 17 Output and the Exchange Rate in the Short Run ◼ Chapter Organization Determinants of Aggregate Demand in an Open Economy. Determinants of Consumption Demand. Determinants of the Current Account. How Real Exchange Rate Changes Affect the Current Account. […]
978-0134519579 Chapter 18
© 2018 Pearson Education, Inc. Chapter 18 Fixed Exchange Rates and Foreign Exchange Intervention ■ Chapter Organization Why Study Fixed Exchange Rates? Central Bank Intervention and the Money Supply. The Central Bank Balance Sheet and the Money Supply. Foreign Exchange […]
978-0134519579 Chapter 19
Chapter 19 International Monetary Systems: An Historical Overview ■ Chapter Organization Macroeconomic Policy Goals in an Open Economy. Internal Balance: Full Employment and Price Level Stability. External Balance: The Optimal Level of the Current Account. Box: Can a Country Borrow […]
978-0134519579 Chapter 2
Chapter 2 World Trade: An Overview ■ Chapter Organization Who Trades with Whom? Size Matters: The Gravity Model. Using the Gravity Model: Looking for Anomalies. Impediments to Trade: Distance, Barriers, and Borders. The Changing Pattern of World Trade. Has the […]
978-0134519579 Chapter 20
© 2018 Pearson Education, Inc. Chapter 20 Financial Globalization: Opportunity and Crisis ■ Chapter Organization The International Capital Market and the Gains from Trade. Three Types of Gains from Trade. Risk Aversion. Portfolio Diversification as a Motive for International Asset […]
978-0134519579 Chapter 21
© 2018 Pearson Education, Inc. Chapter 21 Optimum Currency Areas and the Euro ■ Chapter Organization How the European Single Currency Evolved. What Has Driven European Monetary Cooperation? Box: Brexit. The European Monetary System, 1979–1998. Germany Monetary Dominance and the […]
978-0134519579 Chapter 22
© 2018 Pearson Education, Inc. Chapter 22 Developing Countries: Growth, Crisis, and Reform ■ Chapter Organization Income, Wealth, and Growth in the World Economy. The Gap between Rich and Poor. Has the World Income Gap Narrowed Over Time? The Importance […]
978-0134519579 Chapter 3
© 2018 Pearson Education, Inc. Chapter 3 Labor Productivity and Comparative Advantage: The Ricardian Model ■ Chapter Organization The Concept of Comparative Advantage. A One-Factor Economy. Relative Prices and Supply. Trade in a One-Factor World. Determining the Relative Price after […]
978-0134519579 Chapter 4
Chapter 4 Specific Factors and Income Distribution ■ Chapter Organization The Specific Factors Model. Box: What Is a Specific Factor? Assumptions of the Model. Production Possibilities. Prices, Wages, and Labor Allocation. Relative Prices and the Distribution of Income International Trade […]
978-0134519579 Chapter 5
Chapter 5 Resources and Trade: The Heckscher-Ohlin Model ■ Chapter Organization Model of a Two-Factor Economy. Prices and Production. Choosing the Mix of Inputs. Factor Prices and Goods Prices. Resources and Output. Effects of International Trade between Two-Factor Economies. Relative […]
978-0134519579 Chapter 6
Chapter 6 The Standard Trade Model ■ Chapter Organization A Standard Model of a Trading Economy. Production Possibilities and Relative Supply. Relative Prices and Demand. The Welfare Effect of Changes in the Terms of Trade. Case Study: Unequal Gains from […]
978-0134519579 Chapter 7
Chapter 7 External Economies of Scale and the International Location of Production ■ Chapter Organization Economies of Scale and International Trade: An Overview. Economies of Scale and Market Structure. The Theory of External Economies. Specialized Suppliers. Labor Market Pooling. Knowledge […]
978-0134519579 Chapter 8
Chapter 8 Firms in the Global Economy: Export Decisions, Outsourcing, and Multinational Enterprises ■ Chapter Organization The Theory of Imperfect Competition. Monopoly: A Brief Review. Monopolistic Competition. Monopolistic Competition and Trade. The Effects of Increased Market Size. Gains from an […]
978-0134519579 Chapter 9
Chapter 9 The Instruments of Trade Policy ■ Chapter Organization Basic Tariff Analysis. Supply, Demand, and Trade in a Single Industry. Effects of a Tariff. Measuring the Amount of Protection. Costs and Benefits of a Tariff. Consumer and Producer Surplus. […]
978-0134519579 Test Bank Chapter 1
International Economics: Theory and Policy, 11e (Krugman et al.) Chapter 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 […]
978-0134519579 Test Bank Chapter 10
International Economics: Theory and Policy, 11e (Krugman et al.) Chapter 10 The Political Economy of Trade Policy 10.1 The Case for Free Trade 1) The efficiency case made for free trade is that as trade distortions such as tariffs are […]
978-0134519579 Test Bank Chapter 11
International Economics: Theory and Policy, 11e (Krugman et al.) Chapter 11 Trade Policy in Developing Countries 11.1 Import-Substituting Industrialization 1) The infant industry argument was an important theoretical basis for A) neo-colonialist theory of international exploitation. B) import-substituting industrialization. C) […]
978-0134519579 Test Bank Chapter 12
International Economics: Theory and Policy, 11e (Krugman et al.) Chapter 12 Controversies in Trade Policy 12.1 Sophisticated Arguments for Activist Trade Policy 1) The existence of positive externalities due to the impossibility of full appropriability A) supports the conclusions of […]
978-0134519579 Test Bank Chapter 13 Part 1
International Economics: Theory and Policy, 11e (Krugman et al.) Chapter 13 National Income Accounting and the Balance of Payments 13.1 The National Income Accounts 1) A country’s gross national product (GNP) is A) the value of all final goods and […]
978-0134519579 Test Bank Chapter 13 Part 2
27) What is the national income identity for a closed economy? Answer: Y = C + I + G Page Ref: 327 Difficulty: Easy 28) What is the national income identity for an open economy? Answer: Y = C + […]
978-0134519579 Test Bank Chapter 14 Part 1
International Economics: Theory and Policy, 11e (Krugman et al.) Chapter 14 Exchange Rates and the Foreign Exchange Market: An Asset Approach 14.1 Exchange Rates and International Transactions 1) How many dollars would it cost to buy an Edinburgh Woolen Mill […]
978-0134519579 Test Bank Chapter 14 Part 2
12) For the following 15 cases, compare the dollar rates of return on dollar and euro deposits. Answer: Page Ref: 366-367 Difficulty: Moderate 18 Copyright © 2018 Pearson Education, Inc. 13) For the table below calculate the EXACT relationship. Answer: […]
978-0134519579 Test Bank Chapter 15 Part 1
International Economics: Theory and Policy, 11e (Krugman et al.) Chapter 15 Money, Interest Rates, and Exchange Rates 15.1 Money Defined: A Brief Review 1) The exchange rate between currencies depends on A) the interest rate that can be earned on […]
978-0134519579 Test Bank Chapter 15 Part 2
15.6 Money, the Price Level, and the Exchange Rate in the Long Run 1) An economy’s long-run equilibrium is A) the equilibrium that would occur if prices were perfectly flexible. B) the equilibrium that would occur if prices were perfectly […]
978-0134519579 Test Bank Chapter 16 Part 1
International Economics: Theory and Policy, 11e (Krugman et al.) Chapter 16 Price Levels and the Exchange Rate in the Long Run 16.1 The Law of One Price 1) Which of the following statements is the MOST accurate? The law of […]
978-0134519579 Test Bank Chapter 16 Part 2
The rise in the interest rate from to creates a momentary excess supply of real U.S. money balances at the prevailing price level . However, since under this. Monetary Approach, prices are assumed to be flexible, prices will immediately adjust […]
978-0134519579 Test Bank Chapter 17 Part 1
International Economics: Theory and Policy, 11e (Krugman et al.) Chapter 17 Output and the Exchange Rate in the Short Run 17.1 Determinants of Aggregate Demand in an Open Economy 1) How does an increase in the real exchange rate affect […]
978-0134519579 Test Bank Chapter 17 Part 2
2) Which of the following have to be in equilibrium for the economy to be in equilibrium? A) the money market only B) the goods market only C) the output and asset markets D) the savings and investment markets E) […]
978-0134519579 Test Bank Chapter 18 Part 1
International Economics: Theory and Policy, 11e (Krugman et al.) Chapter 18 Fixed Exchange Rates and Foreign Exchange Intervention 18.1 Why Study Fixed Exchange Rates? 1) Central banks often intervene in currency markets. This activity is called A) super-pegging. B) flexible […]
978-0134519579 Test Bank Chapter 18 Part 2
22) Please use a figure to discuss whether or not a devaluation under a fixed exchange rate has the same long-run effect as a proportional increase in the money supply under a floating rate. Answer: A currency devaluation shifts the […]
978-0134519579 Test Bank Chapter 19 Part 1
International Economics: Theory and Policy, 11e (Krugman et al.) Chapter 19 International Monetary Systems: An Historical Overview 19.1 Macroeconomic Policy Goals in an Open Economy 1) A country seeking to maintain internal balance would be concerned A) only with attaining […]
978-0134519579 Test Bank Chapter 19 Part 2
9) An expenditure-changing policy A) alters the direction of the economy’s total demand for goods and services. B) alters the level of the economy’s total demand for goods and services. C) has no effect on aggregate demand. D) is the […]
978-0134519579 Test Bank Chapter 19 Part 3
23) The DD schedule shows A) interest rate and output pairs for which aggregate demand equals aggregate output. B) exchange rate and output pairs for which aggregate demand equals aggregate output. C) exchange rate and output pairs for which aggregate […]
978-0134519579 Test Bank Chapter 2
International Economics: Theory and Policy, 11e (Krugman et al.) Chapter 2 World Trade: An Overview 2.1 Who Trades with Whom? 1) Approximately what percent of all world production of goods and services is exported to other countries? A) 10% B) […]
978-0134519579 Test Bank Chapter 20 Part 1
International Economics: Theory and Policy, 11e (Krugman et al.) Chapter 20 Financial Globalization: Opportunity and Crisis 20.1 The International Capital Market and the Gains from Trade 1) If you are offered a gamble in which you win 500 dollars 3/8 […]
978-0134519579 Test Bank Chapter 20 Part 2
7) Banks in the U.S. A) cannot hold common stocks. B) can hold common stocks. C) cannot hold common stocks of companies they do business with. D) cannot hold common stocks of companies that have their headquarters in the same […]
978-0134519579 Test Bank Chapter 21 Part 1
International Economics: Theory and Policy, 11e (Krugman et al.) Chapter 21 Optimum Currency Areas and the Euro 21.1 How the European Single Currency Evolved 1) The European Economic and Monetary Union A) set up a single currency and sole bank […]
978-0134519579 Test Bank Chapter 21 Part 2
16) Which one of the following statements is TRUE for Norway, a non-euro country? A) Of course, owners of capital that cannot be moved cannot avoid more of the economic stability loss due to fixed exchange rates when Norway’s economy […]
978-0134519579 Test Bank Chapter 22 Part 1
International Economics: Theory and Policy, 11e (Krugman et al.) Chapter 22 Developing Countries: Growth, Crisis, and Reform 22.1 Income, Wealth, and Growth in the World Economy 1) The world’s economies can be divided into four main categories according to their […]
978-0134519579 Test Bank Chapter 22 Part 2
4) Brazil’s 1999 crisis was relatively short lived because A) Brazil’s financial institutions had avoided borrowing all together. B) Brazil’s financial institutions had avoided heavy borrowing in local currency. C) Brazil’s financial institutions had avoided heavy borrowing in dollars. D) […]
978-0134519579 Test Bank Chapter 3
International Economics: Theory and Policy, 11e (Krugman et al.) Chapter 3 Labor Productivity and Comparative Advantage: The Ricardian Model 3.1 The Concept of Comparative Advantage 1) Trade between two countries can benefit both countries if A) each country exports that […]
978-0134519579 Test Bank Chapter 4
International Economics: Theory and Policy, 11e (Krugman et al.) Chapter 4 Specific Factors and Income Distribution 4.1 The Specific Factors Model 1) The Ricardian model of international trade demonstrates that trade can be mutually beneficial. Why, then, do governments restrict […]
978-0134519579 Test Bank Chapter 5
International Economics: Theory and Policy, 11e (Krugman et al.) Chapter 5 Resources and Trade: The Heckscher-Ohlin Model 5.1 Model of a Two-Factor Economy 1) In the 2-factor, 2-good Heckscher-Ohlin model, an influx of workers from across the border would A) […]
978-0134519579 Test Bank Chapter 6
International Economics: Theory and Policy, 11e (Krugman et al.) Chapter 6 The Standard Trade Model 6.1 A Standard Model of a Trading Economy 1) The meaning of “terms of trade” is A) the amount of exports sold by a country. […]
978-0134519579 Test Bank Chapter 7
International Economics: Theory and Policy, 11e (Krugman et al.) Chapter 7 External Economies of Scale and the International Location of Production 7.1 Economies of Scale and International Trade: An Overview 1) If a firm’s output more than doubles when all […]
978-0134519579 Test Bank Chapter 8
International Economics: Theory and Policy, 11e (Krugman et al.) Chapter 8 Firms in the Global Economy: Export Decisions, Outsourcing, and Multinational Enterprises 8.1 The Theory of Imperfect Competition 1) A monopolistic firm A) can sell as much as it wants […]
978-0134519579 Test Bank Chapter 9
International Economics: Theory and Policy, 11e (Krugman et al.) Chapter 9 The Instruments of Trade Policy 9.1 Basic Tariff Analysis 1) Specific tariffs are A) import taxes stated in specific legal statutes. B) import taxes calculated as a fixed charge […]