Question

and published in 1) Historians of economic thought often describe written by 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 2) 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. 3) 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. 4) The insight that patterns of trade are primarily determined by international differences in labor productivity was first proposed by A) Adam Smith B) David Hume. C) David Ricardo. D) Eli Heckscher. E) Lerner and Samuelson. 5) The gravity model offers a logical explanation for the fact that A) trade between Asia and the U.S. has grown faster than NAFTA trade. B) trade in services has grown faster than trade in goods. C) trade in manufactures has grown faster than in agricultural products. D) Intra-European Union trade exceeds international trade by the European Union. E) the U.S. trades more with Western Europe than it does with Canada.

Answer 1

As per rules, only first question is allowed. As questions are small, I am answering first three questions. Kindly ask other questions separately. Thank you.

1) Of the balance of trade written by David Hume in 1758 is considered as first real exposition of an economic model. It is text on monetary economics and stated that as exports rise and gold will flow into the country, prices will rise.

Option e.

2) An important insight of international trade theory is that when two countries engage in voluntary trade, it benefits both the countries. It is quite obvious as otherwise why would any country will engage in trade.

Option b.

3) The benefit of international trade are derived from trade in anything of value. As we see that goods and services both are traded.

Option e.