国际经济学模拟试题库及答案解析

International Economics（I）Time Allowed: 100 minutesPart I. Multi-choice Questions: (40 Points)1. Over time, the economic interdependence of nations has ( ).A.grownB. diminishedC.remained unchangedD. cannot say2. Economic interdependence is greater for ( ).A.small nationsB. large nationsC. developed nationsD. developing nations3. The commodity in which the nation has the smallest absolute disadvantage is the commodity of its ( ).A. absolute disadvantageB. absolute advantageC. comparative disadvantageD. comparative advantage4. In the trade between a small and a large nation ( ).A.the large nation is likely to receive all of the gains from tradeB.the small nation is likely to receive all of the gains from tradeC.the gains from trade are likely to equally sharedD.we cannot say5. Which of the following is not a reason for increasing opportunity costs? ( )A.technology differs among nationsB.factors of production are not homogenousC.factors of production are not used in the same fixed proportion in theproduction of all commoditiesD.For the nation to produce more of a commodity, it must use resources that areless and less suited in the production of the commodity6. Nation 1’s share of the gains from trade will be greater: ( )A.the greater is nation 1’s demand for nation 2’s exportsB.the closer Px/Py with trade settles to nation 2’s pretrade Px/PyC.the weaker is nation 2’s demand for nation 1’s exportsD.the closer Px/Py with trade settles to nation 1’s pretrade Px/Py7. The offer curve of a nation bulges toward the axis measuring the nation’s ( )A.import commodityB. export commodityC. export or import commodityD. nontraded commodity8. If the nation’s tastes for its import commodity increases ( )A.the nation’s offer curve rotates toward the axis measuring its importcommodityB.the partner’s offer curve rotates toward the axis measuring its importcommodityC.the partner’s offer curve rotates toward the axis measuring its exportcommodityD.the nation’s offer curve rotates toward the axis measuring its exportcommodity9. Which is not an assumption of the H-O model? ( )A.the same the technology in both nationsB.constant returns to scaleplete specializationD.equal tastes in both nations10. A great deal of international trade: ( )A.is intra-industry tradeB.involves differentiated productsC.is based on monopolistic competitionD.all of the above11. The share of transport costs will fall less heavily on the nation: ( )A.with the more elastic demand and supply of the traded commodityB.with the less elastic demand and supply of the traded commodityC.exporting agricultural productsD.with the largest domestic market12. A footloose industry is one in which the product ( )A.gains weight in processingB.loses weight in processingC.both of the aboveD.neither a nor b13. Doubling L with trade in a small L-abundant nation ( )A.reduces the nation’s social welfareB.reduces the nation’s terms of tradeC.reduces the volume of tradeD.all of the above14. Doubling K with trade in a large L-abundant nation ( )A.increases the nation’s welfareB.improves the nation’s terms of tradeC.reduces the volume of tradeD.all of the above15. With a i=50%, t i=0, and t=20%, g is ( ).A.0.4B. 0.2C. 0.8D. 016. The imposition of an optimum tariff by a large nation ( ).A.improves its terms of tradeB.reduces the volume of tradeC.increases the nation’s welfareD.all of the above17. Which of the following is false with respect to strategic trade policy? ( )A.It postulates that a nation can gain by an activist trade policyB.It is practiced to some extent by most industrial nationsC.It can easily be carried outD.It can easily lead to the partners’ retaliation18. The type of dumping which would justify antidumping measures by the country subject to the dumping is ( ).A.predatory dumpingB. sporadic dumpingC. continuous dumpingD. all of the above19. Which of the following statements is correct? ( )A.In a customs union, member nations apply a uniform external tariffB.In a free trade area, member nations harmonize their monetary and fiscalpoliciesC.Within a customs union there is unrestricted factor movementD.A customs union is a higher form of economic integration than a commonmarket20. A customs union that allows for the free movement of labor and capital among its member nations is called ( ).A.PTAB. free trade areaC. common marketD. all of the abovePart II. Draw the offer curves for Nation 1 and Nation 2, showing that Nation 2 is a small nation that trades at the pretrade-relative commodity prices in Nation 1. How are the gains from trade distributed between the two nations? Why? (15 Points)Part III. H-O Model(a) The Definition of H-O theory.(b) Draw a figure to show the Heckscher-Ohlin model with some difference in tastes between Nation 1 and Nation 2.(c) With reference to your figure, give the explanations. (15 Points)Part IV. Draw a figure to show the “immiserizing growth” for nation 2 when the productivity of capital and labor doubled only in the production of commodity Y in Nation 2, and give the explanations. (15 Points)Part V. Assuming that Nation 1 is small, draw a figure to show the general equilibrium effects resulting when nation 1 imposes a 100 percent ad valorem import tariff on commodity Y, starting from its free trade position(assuming that the government use the tariff revenue to subsidize public consumption or for general income tax relief). (15 Points)International Economics（I）AnswersPart I. Multi-choice Questions: (20×2′)1-5: A A D B A6-10: B B D C D11-15: A D A D A16-20: D C A A CPart II.In Figure 1, Nation 2 is the small nation, and we magnified the portion of the offer curve of nation 1 (the large nation) near the origin (where Nation 1’s offer curve coincides with PA4/1, Nation 1’s pretrade–relative commodity price with trade ).This means that Nation 2 can import a sufficiently small quantity of commodity X without perceptibly affecting Px/Py in Nation 1.Thus, Nation 2 is a price takers and captures all of the benefits from is trade with Nation 1 .The same would be true even if Nation 2 were not a small nation ,as long as Nation 1 faced constant opportunity costs and did not specialize completely in the production of commodity X with trade.Figure 1Part III.(a) A nation will export the commodity whose production requires the intensive use of the nation’s relatively abundant and cheap factor and import the commodity whoseproduction requires the intensive use of the nation’s relatively scarce and expensive factor.(b)Figure 2(c) Because commodity X is the L-intensive commodity and Nation 1 is L-abundant nation, Nation 1’s production frontier is skewed along the X-axis. Furthermore, since the two nations have different tastes, there are two indifference maps: indifference curve I & I′.In the absence of trade，Point A and A′ represent their equilibrium points of production. Since PA ＜PA′, Nation 1 has a comparative advantage in commodity X and Nation 2 in commodity Y.With trade, Nation 1 produces at point B and Nation 2 at point B′. In two nations, the relative price of commodity X and Y will be the same. So by exchanging Y for X , Nation 1’s consumption point reaches point E, and Nation 2 reaches point E′.Results: Take Nation 1 for example, Point E involves more of Y but less X than point A, Nevertheless, Nation 1 gains from trade because point E is on higher indifference curve I. The same conditions to nation 2.Both nations gain from trade because they consume on higher indifference curve.Part IV.Figure 3Even if the wealth effect, by itself, tends to increase the nation’s welfare, the terms of trade may deteriorate so much as to lead to a net decline in the nation’s welfare. This case was termed immiserizing growth by Jagdish Bhagwati.Figure 3 shows the production frontier of Nation 2 before and after neutral technical progress increased the productivity of L and K in the production of commodity Y only .With this type of technical progress ,the wealth effect ,by itself, would increase the welfare of Nation 2. However, Nation 2’s terms of trade deteriorate drastically from Py/Px=1 to Py/Px=5/1, so that Nation 1 produces at point C′,and consumes at point G′on indifference curve I (which is lower than indifference curve II which Nation 2 reached with free trade before growth).Part V.Figure 4Explanations:See figure 4, Nation 1 is labor-abundant nation specializing in the production of commodity X (the labor-intensive commodity), which it exports in exchange for imports of commodity Y.From Figure 4,we see that if Px/Py=1 on the world market and Nation 1is too small to affect world prices, it produces at point B, and consumes at point E on its indifference curve Ⅲwith free trade. So it exports 50Y for 50X at PB=1.With the 100 percent ad valorem import tariff on commodity Y, Px/Py=2/1 for domestic producers and consumers but remains at PB=1 on the world market and for the nation as a whole. Production then takes places at point F. Thus, more of importable commodity Y is produced in the nation with the tariff than under free trade. 30Y is exchanged for 30X, of which 20Y is collected in kind by the government of the nation in the form of tariff. Consumption takes places at point H′ on the indifference curve II’ after imposition of the tariff.In Figure 4, note that indifference curve II is tangent to the dashed line parallel to PF=2/1 because individual consumers in the nation face the tariff-inclusive price of Px/Py=2/1. Refer to the former assume, indifference curve must also be on the dashed line parallel to PB=1. Thus, the new consumption point H′ is defined by the intersection of the two dashed lines.International Economics（II）Time allowed: 100 minutesSection A. Multiple Choice Questions (40 points)1.The H－O model extends the classical trade model by:A. explaining the basis for comparative advantageB. examining the effect of trade on factor pricesC. both A and BD. neither A nor B2.If a nation exports twice as much of a differentiated product that it imports, its intra-industry index is equal toA. 1/4B. 1/3C. 3/4D. 2/33. A difference in relative commodity prices between two nations can be based upon a difference inA. factor endowmentsB. technologyC. tastesD. all of the above4.For factor reversal to occur, two commodities must be produced with:A. sufficiently different elasticity of substitution of factorsB. the same K/L ratioC. technologically-fixed factor proportionsD. equal elasticity of substitution of factors5.Which of the following statements is true with regard to the product-cycle theory?A. It depends on differences in technological changes over time among countriesB. It depends on the opening and the closing of technological gaps among countriesC. It postulates that industrial countries export more advanced products to lessadvanced countriesD. all of the above6.The offer curve of a nation shows:A. the supply of a nation’s importsB. the demand for a nation’s exportsC. the trade partner’s demand for imports and supply of exportsD. the nation’s demand for imports and supply of exports7.International trade can be based on economies of scale even if both nations have identical:A. factor endowmentsB. tastesC. technologyD. all of the above8. A deterioration of a nation’s terms of trade causes the nation’s welfare to:A. deteriorateB. improveC. remain unchangedD. any of the above9. A 50 percent productivity increase in the production of commodity YA. increases the output of commodity Y by 50 percentB. does not affect the output of XC. shift the production frontier in the Y direction onlyD. any of the above10.Which of the following is true with respect to the infant-industry argument for protection?A. it refers to temporary protection to establish a domestic industryB. to be valid, the return to the grown-up industry must be sufficiently high also torepay for the higher prices paid by domestic consumers of the commodity during the infancy periodC. is inferior to an equivalent production subsidy to the infant industryD. all of the above11.According to the Stolper-Samuelson theorem, the imposition of a tariff by a nation:A. increases the real return of the nation’s abundant factorB. increases the real return of the nation’s scarce factorC. reduces the real return of the nation’s scarce factorD. any of the above is possible12.The optimum tariff for a small country isA. 100%B. 50%C. 0D. depending on elasticities13.The form of economic integration in which member nations eliminate tariffs on trade among union members and adopt a common external tariff barrier and allow for free movement of factors of production within the union is called aA. free trade areaB. customs unionC. common marketD. economic union14. If in a two-nation (A and B), two-commodity (X and Y) world, it is established that nation A has a comparative advantage in commodity X, then nation B must have:A．an absolute advantage in commodity YB．an absolute disadvantage in commodity YC．a comparative disadvantage in commodity YD．a comparative advantage in commodity Y15. If domestically 3X=3Y in nation A, while 1X=1Y domestically in nation B:A．there will be no trade between the two nationsB．the relative price of X is the same in both nationsC．the relative price of Y is the same in both nationsD．all of the above16. In the trade between a small and a large nation:A．the large nation is likely to receive all of the gains from tradeB．the small nation is likely to receive all of the gains from tradeC．the gains from trade are likely to be equally sharedD．we cannot say17. The offer curve of a nation bulges toward the axis measuring the nation’s: A．import commodityB．export commodityC．export or import commodityD．nontraded commodity18. Export prices must rise for a nation to increase its exports because the nation:A．incurs increasing opportunity costs in export productionB．faces decreasing opportunity costs in producing import substitutesC．faces decreasing marginal rate of substitution in consumptionD．all of the above19. Which of the following statements regarding partial equilibrium analysis is false?A．It relies on traditional demand and supply curvesB．It isolates for study one marketC．It can be used to determine the equilibrium relative commodity price but not the equilibrium quantity withD．none of the above20. An increase in the dollar price of a foreign currency usually：A．benefits U.S. importersB．benefits U.S. exportersC．benefits both U.S. importers and U.S. exportersD．harms both U.S. importers and U.S. exporters21. The Mercantilists did not advocate：A．free tradeB．stimulating the nation’s exportsC．restricting the nation’s importsD．the accumulation of gold by the nation22．The commodity in which the nation has the smallest absolute disadvantage is the commodity of its：A．absolute disadvantageB．absolute advantageC．comparative disadvantageD．comparative advantage23．Ricardo explained the law of comparative advantage on the basis of：A．the labor theory of valueB．the opportunity cost theoryC．the law of diminishing returnsD．all of the above24．The marginal rate of transformation (MRT)of X for Y refers to：A．the amount of Y that a nation must give up to produce each additional unit of X B．the opportunity cost of XC．the absolute slope of the production frontier at the point of productionD．all of the above25．With a i=50%, t i=0, and t=20%, g is ( ).A. 0.4B. 0.2C. 0.8D. 026．Commodity indifference curves：A．are negatively slopedB．are convex to the originC．should not crossD．all of the above27．The marginal rate of substitution (MRS) of X for Y in consumption refers to the：A．amount of X that a nation must give up for one extra unit of Y and still remain on the same indifference curveB．amount of Y that a nation must give up for one extra unit of X and still remain on the same indifference curveC．amount of X that a nation must give up for one extra unit of Y to reach a higher indifference curveD．amount of Y that a nation must give up for one extra unit of X to reach a higher indifference curve28.Over time, the economic interdependence of nations hasB.grownC.diminishedD.remained unchangedE.cannot say29. Economic interdependence is greater forB.small nationsrge nationsC. developed nationsD. developing nations30. Nation 1’s share of the gains from trade will be greaterE.the greater is nation 1’s demand for nation 2’s exportsF.the closer Px/Py with trade settles to nation 2’s pretrade Px/PyG.the weaker is nation 2’s demand for nation 1’s exportsH.the closer Px/Py with trade settles to nation 1’s pretrade Px/Py31. If the nation’s tastes for its import commodity increasesE.the nation’s offer curve rotates toward the axis measuring its import commodityF.the partner’s offer curve rotates toward the axis measuring its import commodityG.the partner’s offer curve rotates toward the axis measuring its export commodityH.the nation’s offer curve rotates toward the axis measuring its export commodity32. A great deal of international tradeE.is intra-industry tradeF.involves differentiated productsG.is based on monopolistic competitionH.all of the above33. The share of transport costs will fall less heavily on the nationE.with the more elastic demand and supply of the traded commodityF.with the less elastic demand and supply of the traded commodityG.exporting agricultural productsH.with the largest domestic market34. A footloose industry is one in which the productE.gains weight in processingF.loses weight in processingG.both A and BH.neither A nor B35. Doubling L with trade in a small L-abundant nationE.reduces the nation’s social welfareF.reduces the nation’s terms of tradeG.reduces the volume of tradeH.all of the above36. Doubling K with trade in a large L-abundant nationE.increases the nation’s welfareF.improves the nation’s terms of tradeG.reduces the volume of tradeH.all of the above37. The imposition of an optimum tariff by a large nationE.improves its terms of tradeF.reduces the volume of tradeG.increases the nation’s welfareH.all of the above38. The imposition of an import tariff by a small nationA.increases the nation’s welfareB.reduces the nation’s welfareC.leave the nation’s welfare unchangedD.all of the above is possible39. Which of the following is false with respect to strategic trade policy?E.It postulates that a nation can gain by an activist trade policyF.It has been practiced to some extent mainly by some industrial nationsG.It can easily be carried outH.It can easily lead to the partners’ retaliation40. The type of dumping which would justify antidumping measures by the country subject to the dumping isB.predatory dumpingC.sporadic dumpingC. continuous dumpingD. all of the aboveSection B. Problem (60 points)1.Please analyze the basis for and the gains from trade with increasing costs, and explain the reason for increasing opportunity costs.2.Please draw a figure to illustrate the immiserizing growth for an increase in the population and labor force of Nation 2.3.Analyze the effects of trade liberalization on factor returns under trade protectionism by applying the Stolper-Samuelson theorem. Try to illustrate your arguments on how to apply the Stolper-Samuelson theorem.参考答案Section A.1.C2.D3.D4.A5.D6.D7.D8.D9.D10.D11.B12.C13.C14.D15.D16.B17.B18.D19.C20.B21.A22.D23.A24.D25.A26.D27.B28.A29.A30.B31.D32.D33.A34.D35.A36.D37.D38.B39.C40.ASection B1.Figure 1(a) The basis for trade is the difference in relative commodity prices across nations. As shown in Figure 1, before trade the PPF and IC of N1 jointly determines the equilibrium production and consumption point at A. Accordingly, the relative commodity prices is at 1/4 in the nation. In Nation 2, the autarky equilibrium is at A’ where the PPF is tangent to the IC curve, with the relative commodity price being 4. Because the price of X is relatively lower in Nation 1 and the price of Y is relatively lower in Nation 2, N1 has a comparative advantage in X and N1 in Y. Consequently it is possible for the two nations to trade with each other for mutual benefits. When the two nations trade, N1 moves from A to B in production. By exchanging 60X for 60Y with N2, N1 ends up consuming at E on indifference curve III. Thus N1 gains 20X and 20Y from trade (comparing the autarky point A with point E). Similarly, with trade N2 moves from A’ to B’ in production. By then exchanging 60X for 60Y with N1, it ends up consuming at point E’ and also gains 20X and 20Y from trade. P B=P B’=1 is the equilibrium-relative price at which trade is balanced.(b) To sum up, a difference in relative commodity prices between two nations is a reflection of their comparative advantage and forms the basis for mutually beneficial trade. With specialization in production and trade, each nation can consume outside its production frontier Note also that when increasing opportunity costs are assumed, specialization is usually incomplete. The reason is as the two nations specialize in the production of the commodity of their comparative advantage, they both incur increasing costs. As a result, relative commodity prices move toward each other until they are identical in both nations.2.Figure 2(a) Immiserizing growth refers to a situation first proposed by Jagdish Bhagwati (1958), where economic growth could result in a country being worse off than before the growth. If growth is heavily export biased it will lead to a fall in the terms of trade of the exporting country, in rare circumstances this fall in the terms of trade may be so large as to outweigh the gains from growth, this situation would cause a country to be worse off after growth than before.(b) Figure 2 presents the production frontier of Nation 1 which is labor abundant before and after neutral technical progress increased the productivity of L and K in the production of X only. Before technical progress, PPF is the black one. Before growth and with trade, N1 produces at P and consumes at C. After growth in the production of X, PPF shifts out along the X axis. We can see from the figure that C’ is on a lower indifference curve than C, suggest of the deterioration in national welfare. The reason is that although such technical progress by itself increases the welfare of N1 with increased productivity of and returns to labor, the terms of trade deteriorate drastically so that N1 produces at P’ and consumes at C’ on a lower indifference curve that what it could achieve with free trade before growth. That is, the unfavorable terms of trade effect more than offsets the favorable wealth effect, resulting in net loss in welfare.(c) It should be pointed out that immiserizing growth is not very prevalent in the real world. Its occurrence requires several conditions. First, growth increases the nation’s exports substantially at constant terms of trade. Secondly, the nation is large enough to incur a deteriorating terms of trade. Third, the demand elasticity to price is inelastic , that is, when small movements on supply of goods produces big changes on prices. Fourth, the nation is so heavily dependent on trade that deterioration in terms of trade leads to a reduction in national welfare. 3.(a) The Stolper-Samuelson Theorem holds that an increase in the relative price of a commodity raises the return or earnings of the factor used intensively in the production of the commodity. When a nation imposes a tariff, the relative price of its import commodity will rise accordingly and the real returns to its scarce factor.(b) When trade barriers such as import tariff and import quota are removed, import price will be lowered in a small nation and usually lower in a large country. As a result, the relative price of the export commodity will rise. According to the theorem, the earning of the factor used intensively in the product of the exportable goods will increase.qqConsumption decrease on exportable goods (possible but not necessary)Production increase on exportable goods(c) The theorem always holds for small nations in the case of import tariff because reduction in demand in a small nation does not affect world price. For a large country, it is usually true. However, if the reduction in demand incurred by the nation’s imposition of a tariff drastically decreases world price so as to make the relatively price of the import commodity fall after the imposition of the tariff, the theorem will not hold. Therefore, when applying the Stolper-Samuelson Theorem to analyzing the effect of a tariff on factor returns, we need to be take into consideration whether it is small country or a large country. In the large country case, we need to investigate the possibility of Metzler paradox. Also to be pointed out is that the theorem refers to the long run when all factors are mobile between the nation’s industries and it is inappropriate to apply it to short run situations.International Economics （III）Time Allowed : 120 minutesSection A. Multiple Choice Questions (40 points)1.If with one hour of labor time nation A can produce either 3X or 3Y while nation B can produce either 1X or 3Y (and labor is the only input), the range of mutually beneficial trade between nation A and B is:1.3Y<3X<5Y2.5Y<3X<9Y3.3Y<3X<9Y4.1Y<3X<3Y2.If a nation exports three times as much of a differentiated product that it imports, its intra-industry index is equal toA. 1/4B. 1/2C. 3/4D. 2/33.Nation 1’s share of the gains from trade will be greater:A. the greater is nation 1’s demand for nation 2’s exportsB. the closer P X/P Y with trade settles to nation 2’s pre-trade P X/P YC. the weaker is nation 2’s demand for nation 1’s exportsD. the closer P X/P Y with trade settles to nation 1’s pre-trade P X/P Y4.For factor reversal to occur, two commodities must be produced with:A. sufficiently different elasticity of substitution of factorsB. the same K/L ratioC. technologically-fixed factor proportionsD. equal elasticity of substitution of factors5.The Metzler ParadoxA. could theoretically happen when a small country levies a tariff.B. refers to a situation when an Optimal Tariff hurts a country’s economic welfare.C. refers to a situation when the imposition of a tariff lowers the domestic relative prices of theimported goods.D. refers to a situation when the imposition of a tariff helps foreign exporters.6.According to the Stolper-Samuelson theorem, the imposition of a tariff by a nation:A. increases the real return of the nation’s abundant factorB. increases the real return of the nation’s scarce factorC. reduces the real return of the nation’s scarce factorD. any of the above is possible。