国际经济学英⽂版选择题练习题⼆： Part A: Multiple ChoiceDADCC BACDB DD1. In the 2-factor, 2 good Heckscher-Ohlin model, the two countries differ inA) tastes.B) military capabilities.C) size.D) relative availabilities of factors of production.E) labor productivities.2.The slope of a country?s PPF reflectsA) the opportunity cost of product S in terms of product T.B) the opportunity cost of T in terms of money prices.C) the opportunity cost of S or T in terms of S.D) Both A and B.E) Both A and C.3. According to the Heckscher-Ohlin model, the source of comparative advantage is a country?sA) Technology.B) advertising.C) human capital.D) factor endowments.E) Both A and B.4. If Australia has relatively more land per worker, and Belgium has relatively m ore capital per worker, then if trade were to open up between these two countries , A) the relative price of the capital-intensive product would rise in Australia. B) the world price of the land-intensive product would be higher than it had been in Belgium.C) the world price of the land intensive product would be higher than it had been in Australia.D) the relative price of the land intensive product would rise in Belgium.E) None of the above.5. The Heckscher-Ohlin model predicts all of the following exceptA) which country will export which product.B) which factor of production within each country will gain from trade.C) the volume of trade.D) that wages will tend to become equal in both trading countries.E) None of the above.6. External economies of scale arise when the cost per unitA) rises as the industry grows larger.B) falls as the industry grows larger rises as the average firm grows larger.C) falls as the average firm grows larger.D) remains constant.E) None of the above.7. External economies of scaleA) may be associated with a perfectly competitive industry.B) cannot be associated with a perfectly competitive industry.C) tends to result in one huge monopoly.D) tends to result in large profits for each firm.E) None of the above.8. The simultaneous export and import of widgets by the United States is an exa mple ofA) increasing returns to scale.B)B) imperfect competition.C) intra-industry trade.D) inter-industry trade.E) None of the above.9. Intra-industry trade can be explained in part byA) transportation costs within and between countries.B) problems of data aggregation and categorization.C) increasing returns to scale.D) All of the above.E) None of the above.10. Intra-industry trade will tend to dominate trade flows when which of the foll owing exists?A) large differences between relative country factor availabilitiesB) small differences between relative country factor availabilitiesC) homogeneous products that cannot be differentiatedD) constant cost industriesE) None of the above.11. The larger the number of firms in a monopolistic competition situation,A) the larger are that country?s exports.B) the higher is the price charged.C) the fewer varieties are sold.D) the lower is the price charged.E) None of the above.12. The larger the number of firms in a monopolistic competition situation,A) the larger are that country?s exports.B) the higher is the price charged.C) the fewer varieties are sold.D) the lower is the price charged.E) None of the above.Part B： Short Questions1. ?The H.O. model remains useful as a way to predict the income distribution effect s of trade.? Discuss.Answer: T he Stolper-Samuelson theorem, one of the basic theorems arising from theHeckscher-Ohlin model yields an elegant demonstration of the fact that changes i n product prices (such as will occur when trade is expanded or curtailed) telesco pes its effects onto factor prices, so that not only do relative factor returns mirror product prices, but that actual returns to factors may either rise or fall in real te rms. Hence, as a policy framework, the disproportionate effect trade may have o n real incomes of sectors, such as skilled-labor is quite useful both theoretically a nd practically (or polemically)2. International trade leads to complete equalization of factor prices. Discuss. This statement is typically ?true . . . but.? Undera strict and limited set of assumptions, such as the original Heckscher-Ohlin model which excludes country specific technologies; non- homothetic taste s; factor intensity reversals; large country differences in (relative) factor abunda nces, more factors than goods, and an equilibrium solution within the ?cone of specialization?; then it may bedemonstrated that internal consistency demands that the above stated sentence istrue. However, the minute one relaxes any of the above listed assumptions one may easily identify solutions, which contradict the factor price equalization theorem.3. If a scale economy is the dominant technological factor defining or establishing comparativeadvantage, then the underlying facts explaining why a particular country domin ates world markets in some product may be pure chance, or historical accident. Explain, and compare this with the answer you would give for the Heckscher-Ohl in model of comparative advantage.T his statement is true, since the reason the seller is a monopolist may be that it happened to have been the first to produce this product in this country. It may h ave no connection to any supply or demand related factors; nor to any natural or man-made availability. This is all exactly the opposite of the Heckscher-Ohlin Ne o-Classical model?s explanation of the determinants of comparative advantage.练习题三 Part A Multiple ChoiceB E D D A D A A AC C A BD D1) International borrowing and lending may be interpreted as one form ofA) intermediate trade.B) inter-temporal trade.C) trade in services.D) unrequited international transfers.E) None of the above.2) International free labor mobility will under all circumstancesA) increase total world output.B) improve the economic welfare of everyone.C) improve the economic welfare of workers everywhere.D) improve the economic welfare of landlords (or capital owners) everywhere.E) None of the above.3) International labor mobilityA) leads to wage convergence by raising wages in destination country and lowering in source country.B) is in accordance with the specific factors model.C) is in accordance with the Heckscher-Ohlin factor proportions model.D) leads to wage convergence by raising wages in source and lowering them in destin ation country.E) is in accordance with scale economy model.4) If initially wages are higher in Home than in Foreign, then a movement of wor kers from Foreign to Home willA) lower the marginal product of labor in Foreign.B) raise total product in Foreign.C) raise the income of land owners in Foreign.D) raise the income of land owners in Home.E) None of the above.5) A country that has a comparative advantage in future production of consumpt ion goodsA) will tend to be an international borrower.B) will tend to have low real interest rates.C) will tend to be an international investor or lender.D) will tend to have good work ethics. E) None of the above.6) Why a good is produced in two different countries is known as the question ofA) internalization.B) vertical integration.C) exploitation.D) location.E) None of the above.7) Direct foreign investment may take any of the following forms exceptA) investors buying bonds of an existing firm overseas.B) the creation of a wholly owned business overseas.C) the takeover of an existing company overseas.D) the construction of a manufacturing plant overseas.E) None of the above.8) Multinational corporationsA) increase the transfer of technology between nations.B) make it harder for nations to foster activities of comparative advantage.C) always enjoy political harmony in host countries in which their subsidiaries operat e.D) require governmental subsidies in order to conduct worldwide operations.E) None of the above.9) The shift of labor-intensive assembly operations from the United States to Mex ican maqiladora may be best explained in terms of a theory ofA) location.B) vertical integration.C) horizontal integration.D) internalization.E) None of the above.10) A lower tariff on imported steel would most likely benefitA)foreign producers at the expense of domestic consumers.B) domestic manufacturers of steel.C) domestic consumers of steel.D) workers in the steel industry.E) None of the above.11) In the country levying the tariff, the tariff willA) increase both consumer and producer surplus.B) decrease both the consumer and producer surplus.C) decrease consumer surplus and increase producer surplus.D) increase consumer surplus and decrease producer surplus.E) None of the above.12) If the tariff on computers is not changed, but domestic computer producers s hift from domestically produced semiconductors to imported components, then the effective rate of protection in the computer industry willA) increase.B) decreaseC) remain the same.D)depend on whether computers are PCs or ?Supercomputers.?E) None of the above.13) If a small country imposes a tariff, thenA）the producers must suffer a loss.B) the consumers must suffer a loss.C) the government revenue must suffer a loss. D) the demand curve must shift to the l eft.E) None of the above.14) The effective rate of protection measuresA)the ?true? ad valorum value of a tariff.B) the quota equivalent value of a tariff.C) the efficiency with which the tariff is collected at the customhouse.D) the protection given by the tariff to domestic value added.E) None of the above.15) As globalization tends to increase the proportion of imported inputs relative t o domestically supplied components,A) the nominal tariff automatically increases.B) the rate of (effective) protection automatically decreases.C) the nominal tariff automatically decreases.D) the rate of (effective) protection automatically increases. E) None of the above. PART B Short Question 1.It has been argued that even if intra-European Union labor mobility were to be c ompletely removed, one should not expect to observe massive, or even large reall ocations of populations with the E.U. Discuss.T heoretically, just as completely free trade consistent with Heckscher-Ohlin model (with no complete specialization) is associated with factor price equalizatio n; so does completely free labor mobility. It therefore follows that if intra E.U. tr ade flourishes, as any restraints on trade there are abolished, the economic incen tive for labor mobility will be removed. Since language and cultural differences r emain, we would expect populations to tend to stay where they are.2. The two deadweight triangles are the Consumption distortion and Production distortion losses. It is easy to understand why the Consumption distortion constit utes a loss for society. After all it raises the prices of goods to consumers, and eve n causes some consumers to drop out of the market altogether. It seems paradoxi cal that the Production distortion is considered an equivalent burden on society. After all, in this case, profits increase, and additional production (with its associa ted employment) comes on line. This would seem to be an offset rather than an addition to the burden or loss borne by society. Explain why the Production distor tion is indeed a loss to society, and what is wrong with the logic that leads to the a pparent paradox.T he Production Distortion represents an inefficient shift of society?s resources to produce a good, which it could not sell profitably at world prices. S ince (with full employment assumed) these resources were formerly used to prod uce export goods, which could compete profitably, the net result is a loss in real i ncome to the country.练习题五：A E C A D C D D E D A D 1．Which of the following statements is the most accurate? The law of one price states:A) in competitive markets free of transportation costs and official barrier to trade, ide ntical goods sold in different countries must sell for the same price when their prices a re expressed in terms of the same currency.B) in competitive markets free of transportation costs and official barrier to trade, iden tical goods sold in the same country must sell for the same price when their prices are expressed in terms of the same currency.C) in competitive markets free of transportation costs and official barrier to trade, ide ntical goods sold in different countries must sell for the same price.D) identical goods sold in different countries must sell for the same price when their p rices are expressed in terms of the same currency.E) None of the above.2. In order for the condition E$/HK$ = Pus/PHK to hold, what assumptions does the principle of purchasing power parity make?A) No transportation costs and restrictions on trade; commodity baskets that are a reli able indication of price level.B) Markets are perfectly competitive, i.e., P = MC.C) The factors of production are identical between countries.D) No arbitrage exists. E) A and B.3. Under Purchasing Power Parity,A) E$/E = PiUS/PiE.B) E$/E = PiE/PiUS.C) E$/E = PUS/PE.D) E$/E = PE/PES.E) None of the above.4. In the short run,A) the interest rate can rise when the domestic money supply falls.B) the interest rate can decrease when the domestic money supply falls.C) the interest rate stays constant when the domestic money supply falls.D) the interest rate rises in the same proportion as the domestic money supply falls.E) None of the above.5. The PPP theory fails in reality becauseA) transport costs and restrictions on trade.B) monopolistic or oligopolistic practices in goods markets.C) the inflation data reported in different countries are based on different commodity baskets.D) A, B, and C.E) A and B only.6. The PPP theory fails in reality becauseA) transport costs and restrictions on trade.B) monopolistic or oligopolistic practices in goods markets.C) the inflation data reported in different countries are based on different commodity baskets.D) A, B, and C.E) A and B only.7. A country?s domestic currency?s real exchange rate, q, is defined asA) E.B) E times P.C) E times P.D) (E times P)/P.E) P/(E times P).8. In the short-run, any fall in EP/P, regardless of its causes, will causeA) an upward shift in the aggregate demand function and an expansion of outputB) an upward shift in the aggregate demand function and a reduction in outputC) a downward shift in the aggregate demand function and an expansion of outputD) an downward shift in the aggregate demand function and a reduction in outputE) an upward shift in the aggregate demand function but leaves output intact9. In the short-run, a temporary increase in money supplyA) shifts the DD curve to the right, increases output and appreciates the currency.B) shifts the AA curve to the left, increases output and depreciates the currency.C) shifts the AA curve to the left, decreases output and depreciates the currency.D) shifts the AA curve to the left, increases output and appreciates the currency.E) shifts the AA curve to the right, increases output and depreciates the currency.10. Temporary tax cuts would cause:A) the AA-curve to shift left.B) the AA-curve to shift right.C) the DD-curve to shift left.D) the DD-curve to shift right.E) a shift in the AA-curve, although the direction is ambiguous.11. In the short-run, a temporary increase in the money supplyA) shifts the AA curve to the right, increases output and depreciates the currency.B) shifts the AA curve to the left, increases output and depreciates the currency.C) shifts the AA curve to the left, decreases output and depreciates the currency.D) shifts the AA curve to the left, increases output and appreciates the currency.E) shifts the AA curve to the right, increases output and appreciates the currency.12. Assume the asset market is always in equilibrium. Therefore a fall in Y would result in:A) higher inflation abroad.B) a decreased demand for domestic products.C) a contraction of the money supply.D) a depreciation of the home currency.E) an appreciation of the home currency.13. What can explain the failure of relative PPP to hold in reality?Government measures of the price level differ from country to country. One reason f or these differences is that people living in different countries spend their income in di fferent ways. Because of this inherent difference among countries, certain baskets will be affected more by price changes given their consumptions basket. For example, con sumers in country, X, eats more fish relative to another country. More than likely, the government, upon determining a commodity basket to reflect preference, will have an overwhelming representation of fish in their basket. Any price level change in the fish market will be felt particularly by country X, and their overall price level will reflect this. Thus, changes in the relative prices of basket components can cause relative PPP to become distorted.14. Using a figure show that under full employment, a temporary fiscal expansion wo uld increase output (overemployment) but cannot increase output in the long run.A temporarily fiscal expansion will move the economy from DD1 to DD2, and outp ut increases. A permanent fiscal expansion will also shift the AA curve to the left and down. The nominal exchange rate appreciates, i.e. E decreases.15. Using the DD model, explain what happens to out put when Government demands increase. Use a figure to explain when it is taking place.T he figure below shows the G1 to G2 raises output at every level of the exchange rat e. The change shifts the DD to the right. Which in turns increases output to Y2.。
