Question 1

The title of Douglas Irwin's famous book on static trade analysis and economic growth is entitled:
A) The Rising Tide.
B) International Trade: An Engine of Growth?
C) Against the Tide.
D) In Defense of Globalization.

Accepted Answer

Douglas Irwin's book "Against the Tide: An Intellectual History of Free Trade" explores the history and arguments for and against free trade, rather than focusing specifically on static trade analysis and economic growth. However, among the given options, it is the title that corresponds to a work by Douglas Irwin.

Question 2

The main theme of Lewer and Van den Berg's (2007) manuscript International Trade and Economic Growth is:
A) the greatest gains from international trade are derived from it's impact on long-run economic growth.
B) the largest gains from international trade come from it's impact on short-run efficiency gains.
C) the largest gains from international trade come from it's impact on factor accumulation.
D) the largest gains from international trade come from it's impact on macroeconomic policies.

Accepted Answer

The main theme of Lewer and Van den Berg's manuscript is that the greatest gains from international trade are derived from its impact on long-run economic growth. This is emphasized throughout the article and supported by various economic theories and empirical evidence.

Question 3

The gains from dealing with strangers: There are three fundamental advantages from expanding the number of people we interact with. Which of the following is not one of the three fundamental advantages from dealing with strangers as mentioned by Seabright (2004)?
A) Gains from specialization.
B) Reductions in risks from unpredictable adverse outcomes.
C) Faster expansion of knowledge.
D) More conflict.

Accepted Answer

Seabright (2004) did not mention more conflict as one of the fundamental advantages from dealing with strangers. Instead, he mentioned gains from specialization, reductions in risks from unpredictable adverse outcomes, and faster expansion of knowledge.

Question 4

In this manuscript, Seabright (2004) mentions the inherent problems that arise from depending on strangers. Seabright calls the recent idea of specialization and dealing with strangers as:
A) the great unknown.
B) the great evolutionary process.
C) the great experiment.
D) the great globalization era.

Accepted Answer

Seabright calls the recent idea of specialization and dealing with strangers as "the great experiment" because it is a new phenomenon that comes with risks and uncertainty.

Question 5

Which of the following Nobel laureates in economics is best known for his contribution to the importance of how institutions impact economic outcomes and human behavior?
A) Milton Friedman.
B) Robert Lucas.
C) Gary Becker.
D) Douglass North.

Accepted Answer

Douglass North is best known for his contribution to new institutional economics, which emphasizes the importance of institutions such as laws, customs, and traditions in shaping economic outcomes and human behavior.

Quiz 9: Restating the Case for Free Trade

The title of Douglas Irwin's famous book on static trade analysis and economic growth is entitled:

The main theme of Lewer and Van den Berg's (2007) manuscript International Trade and Economic Growth is:

The gains from dealing with strangers: There are three fundamental advantages from expanding the number of people we interact with. Which of the following is not one of the three fundamental advantages from dealing with strangers as mentioned by Seabright (2004) ?

In this manuscript, Seabright (2004) mentions the inherent problems that arise from depending on strangers. Seabright calls the recent idea of specialization and dealing with strangers as:

Which of the following Nobel laureates in economics is best known for his contribution to the importance of how institutions impact economic outcomes and human behavior?