【国际经济学专题考试试卷二十一】The Theory of Consumer Choice

《国际经济学》模拟试题及参考答案（一）一、名词解释（每小题5 分，共20 分）1.要素禀赋2.倾销3.黄金输送点4.三元悖论二、单项选择题：从下列每小题的四个选项中，选出一项正确的，将其标号填在题后的括号内。

（每小题2 分，共20 分）2.根据相互需求原理，两国均衡的交换比例取决于（）A 两国的绝对优势B 两国的比较优势C 两国的相对需求强度D 两国的要素禀赋3.在当今的国际贸易格局中，产业内贸易更容易发生于（）A 发展中国家与发达国家B 发达国家与发达国家C 发展中国家与发展中国家D 发展中国家和最不发达国家4.课征关税会增加生产者剩余，减少消费者剩余，社会总福利的变化将（）A 上升B 降低C 不变D 不确定5.以下选项中，哪个选项不属于国际收支统计中居民的概念？（）A 外国企业B 非盈利机构C 国际经济组织D 政府7.布雷顿森林体系创立了（）A 以英镑为中心的固定汇率制度B 以美元为中心的固定汇率制度C 以英镑为中心的有管理的浮动汇率制度D 以美元为中心的有管理的浮动汇率制度8.在下列投资方式中，属于国际间接投资的是（）A 在国外设立分公司B 在国外设立独资企业C 在国外设立合资企业D 购买国外企业债券9.经济非均衡的无形传导方式不包括（）A 技术转让B 信息交流C 信息回授D 示范效应10.在斯图旺表中第三象限表示（）A 通货膨胀与国际收支顺差并存B 衰退与国际收支顺差并存C 衰退与国际收支逆差并存D 通货膨胀与国际收支逆差并存三、判断正误题：正确的命题在括号里划"√"，错误的命题在括号里划"×"。

（每小题2 分，共20 分）1.亚当。

斯密的绝对利益学说和大卫•李嘉图的比较利益学说都是从劳动生产率差异的角度来解释国际贸易的起因。

（）2.出口的贫困化增长现象是一种普遍存在的现象，几乎所有国家都曾出现过，并且很难避免。

（）3.国际贸易与国内贸易有相同的起因和特征，彼此之间不存在本质上的差别。

《国际经济学》模拟试题及参考答案（一）一、名词解释（每小题 5 分，共 20 分）1.要素禀赋2.倾销3.黄金输送点4.三元悖论二、单项选择题：从下列每小题的四个选项中，选出一项正确的，将其标号填在题后的括号内。

（每小题 2 分，共 20 分）2.根据相互需求原理，两国均衡的交换比例取决于（）A 两国的绝对优势B 两国的比较优势C 两国的相对需求强度D 两国的要素禀赋3.在当今的国际贸易格局中，产业内贸易更容易发生于（）A 发展中国家与发达国家B 发达国家与发达国家C 发展中国家与发展中国家D 发展中国家和最不发达国家4.课征关税会增加生产者剩余，减少消费者剩余，社会总福利的变化将（）A 上升B 降低C 不变D 不确定5.以下选项中，哪个选项不属于国际收支统计中居民的概念？（）A 外国企业B 非盈利机构C 国际经济组织D 政府7.布雷顿森林体系创立了（）A 以英镑为中心的固定汇率制度B 以美元为中心的固定汇率制度C 以英镑为中心的有管理的浮动汇率制度D 以美元为中心的有管理的浮动汇率制度8.在下列投资方式中，属于国际间接投资的是（）A 在国外设立分公司B 在国外设立独资企业C 在国外设立合资企业D 购买国外企业债券9.经济非均衡的无形传导方式不包括（）A 技术转让B 信息交流C 信息回授D 示范效应10.在斯图旺表中第三象限表示（）A 通货膨胀与国际收支顺差并存B 衰退与国际收支顺差并存C 衰退与国际收支逆差并存D 通货膨胀与国际收支逆差并存三、判断正误题：正确的命题在括号里划"√"，错误的命题在括号里划"×"。

（每小题 2 分，共 20 分）1.亚当。

斯密的绝对利益学说和大卫•李嘉图的比较利益学说都是从劳动生产率差异的角度来解释国际贸易的起因。

（）2.出口的贫困化增长现象是一种普遍存在的现象，几乎所有国家都曾出现过，并且很难避免。

国际经济学英文题库（最全版附答案）【国际经济学】英文题库Chapter 1: IntroductionMultiple-Choice Questions1. Which of the following products are not produced at all in the United States *A. Coffee, tea, cocoaB. steel, copper, aluminumC. petroleum, coal, natural gasD. typewriters, computers, airplanes2. International trade is most important to the standard of living of:A. the United States*B. SwitzerlandC. GermanyD. England3. Over time, the economic interdependence of nations has:*A. grownB. diminishedC. remained unchangedD. cannot say4. A rough measure of the degree of economic interdependence of a nation is giv en by:A. the size of the nations' populationB. the percentage of its population to its GDP*C. the percentage of a nation's imports and exports to its GDPD. all of the above5. Economic interdependence is greater for:*A. small nationsB. large nationsC. developed nationsD. developing nations6. The gravity model of international trade predicts that trade between two nat ions is largerA. the larger the two nationsB. the closer the nationsC. the more open are the two nations*D. all of the above7. International economics deals with:A. the flow of goods, services, and payments among nationsB. policies directed at regulating the flow of goods, services, and paymentsC. the effects of policies on the welfare of the nation*D. all of the above8. International trade theory refers to:*A. the microeconomic aspects of international tradeB. the macroeconomic aspects of international tradeC. open economy macroeconomics or international financeD. all of the above9. Which of the following is not the subject matter of international financeA. foreign exchange marketsB. the balance of payments*C. the basis and the gains from tradeD. policies to adjust balance of payments disequilibria10. Economic theory:A. seeks to explain economic eventsB. seeks to predict economic eventsC. abstracts from the many detail that surrounds aneconomic event*D. all of the above11. Which of the following is not an assumption generally made in the study of international economicsA. two nationsB. two commodities*C. perfect international mobility of factorsD. two factors of production12. In the study of international economics:A. international trade policies are examined before the bases for tradeB. adjustment policies are discussed before the balance of paymentsC. the case of many nations is discussed before the two-nations case*D. none of the above13. International trade is similar to interregional trade in that both must ove rcome:*A. distance and spaceB. trade restrictionsC. differences in currenciesD. differences in monetary systems14. The opening or expansion of international trade usually affects all members of society:A. positivelyB. negatively*C. most positively but some negativelyD. most negatively but some positively15. An increase in the dollar price of a foreign currency usually:A. benefit . importers*B. benefits . exportersC. benefit both . importers and . exportersD. harms both . importers and . exporters16. Which of the following statements with regard to international economics is trueA. It is a relatively new field*B. it is a relatively old fieldC. most of its contributors were not economistsD. none of the above思考题：1.为什么学习国际经济学非常重要2.列举体现当前国际经济学问题的一些重要事件，它们为什么重要3.当今世界面临的最重要的国家经济问题是什么全球化的利弊各是什么Chapter 2: The Law of Comparative AdvantageMultiple-Choice Questions1. The Mercantilists did not advocate:* tradeB. stimulating the nation's exportsC. restricting the nations' importsD. the accumulation of gold by the nation2. According to Adam Smith, international trade was based on:*A. absolute advantageB. comparative advantageC. both absolute and comparative advantageD. neither absolute nor comparative advantage3. What proportion of international trade is based onabsolute advantageA. AllB. most*C. someD. none4. The commodity in which the nation has the smallest absolute disadvantage is the commodity of its:A. absolute disadvantageB. absolute advantageC. comparative disadvantage*D. comparative advantage5. If in a two-nation (A and B), two-commodity (X and Y) world, it is establish ed 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 Y*D. a comparative advantage in commodity Y6. If with one hour of labor time nation A can produce either 3X or 3Y while na tion B can produce either 1X or 3Y (and labor is the only input):A. nation A has a comparative disadvantage in commodity XB. nation B has a comparative disadvantage in commodity Y*C. nation A has a comparative advantage in commodity XD. nation A has a comparative advantage in neither commodity7. With reference to the statement in Question 6:A. Px/Py=1 in nation AB. Px/Py=3 in nation BC. Py/Px=1/3 in nation B*D. all of the above8. With reference to the statement in Question 6, if 3X is exchanged for 3Y:A. nation A gains 2X*B. nation B gains 6YC. nation A gains 3YD. nation B gains 3Y9. With reference to the statement of Question 6, the range of mutually benefic ial trade between nation A and B is:A. 3Y < 3X < 5YB. 5Y < 3X < 9Y*C. 3Y < 3X < 9YD. 1Y < 3X < 3Y10. 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 nations*D. all of the above11. 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 above12. Which of the following statements is trueA. The combined demand for each commodity by the two nations is negatively slop edB. the combined supply for each commodity by the two nations is rising stepwiseC. the equilibrium relative commodity price for each commodity with trade isgiven by the intersection of the demand and supply of each commod ity by the two nations*D. all of the above13. A difference in relative commodity prices between two nations can be based upon a difference in:A. factor endowmentsB. technologyC. tastes*D. all of the above14. In the trade between a small and a large nation:A. the large nation is likely to receive all of the gains from trade*B. 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 say15. The Ricardian trade model has been empirically*A. verifiedB. rejectedC. not testedD. tested but the results were inconclusive思考题：比较优势原理所带来的贸易所得是从何而来的贸易利益又是如何分配的现实世界中比较优势是如何度量的你认为目前中国具有比较优势的商品有哪些这意味着什么比较优势会不会发生变化什么样的原因可能会导致其变化经济学家是如何验证比较优势原理的Chapter 3: The Standard Theory of International TradeMultiple-Choice Questions1. A production frontier that is concave from the origin indicates that the nat ion incurs increasing opportunity costs in the production of:A. commodity X onlyB. commodity Y only*C. both commoditiesD. neither commodity2. 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 o f XB. the opportunity cost of XC. the absolute slope of the production frontier at the point of production*D. all of the above3. Which of the following is not a reason for increasing opportunity costs:*A. technology differs among nationsB. factors of production are not homogeneousC. factors of production are not used in the same fixed proportion in the produ ction of all commoditiesD. for the nation to produce more of a commodity, it must use resources that ar e less and less suited in the production of the commodity4. Community indifference curves:A. are negatively slopedB. are convex to the originC. should not cross*D. all of the above5. 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 rem ain on the same indifference curve*B. amount of Y that a nation must give up for one extra unit of X and still re main on the same indifference curveC. amount of X that a nation must give up for one extra unit of Y to reach a hi gher indifference curveD. amount of Y that a nation must give up for one extra unit of X to reach a hi gher indifference curve6. Which of the following statements is true with respect to the MRS of X for YA. It is given by the absolute slope of the indifference curveB. declines as the nation moves down an indifference curveC. rises as the nation moves up an indifference curve*D. all of the above7. Which of the following statements about community indifference curves is t rueA. They are entirely unrelated to individuals' community indifference curvesB. they cross, they cannot be used in the analysis*C. the problems arising from intersecting community indifference curves can be overcome by the application of the compensation principleD. all of the above.8. Which of the following is not true for a nation that is in equilibrium in isolation*A. It consumes inside its production frontierB. it reaches the highest indifference curve possible with itsproduction front ierC. the indifference curve is tangent to the nation's production frontierD. MRT of X for Y equals MRS of X for Y, and they are equal to Px/Py9. If the internal Px/Py is lower in nation 1 than in nation 2 without trade:A. nation 1 has a comparative advantage in commodity YB. nation 2 has a comparative advantage in commodity X*C. nation 2 has a comparative advantage in commodity YD. none of the above10. Nation 1's share of the gains from trade will be greater:A. the greater is nation 1's demand for nation 2's exports*B. 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/Py11. If Px/Py exceeds the equilibrium relative Px/Py with tradeA. the nation exporting commodity X will want to export more of X than at equilibriumB. the nation importing commodity X will want to import less of X than atequilibriumC. Px/Py will fall toward the equilibrium Px/Py*D. all of the above12. With free trade under increasing costs:A. neither nation will specialize completely in productionB. at least one nation will consume above its production frontierC. a small nation will always gain from trade*D. all of the above13. Which of the following statements is falsegains from trade can be broken down into the gains from exchange and the ga ins from specializationB. gains from exchange result even without specialization*C. gains from specialization result even without exchangeD. none of the above14. The gains from exchange with respect to the gains from specialization are a lways:A. greaterB. smallerC. equal*D. we cannot say without additional information15. Mutually beneficial trade cannot occur if production frontiers are:A. equal but tastes are notB. different but tastes are the sameC. different and tastes are also different*D. the same and tastes are also the same.思考题：国际贸易的标准理论与大卫.李嘉图的比较优势原理有何异同两国仅仅由于需求偏好不同可以进行市场分工和狐狸贸易吗两国仅仅由于要素禀赋不同和/或生产技术不同可以进行分工和贸易吗Chapter 4: Demand and Supply, Offer Curves, and the T erms of TradeMultiple Choice Questions1. Which of the following statements is correctA. The demand for imports is given by the excess demandfor the commodityB. the supply of exports is given by the excess supply of the commodityC. the supply curve of exports is flatter than the total supply curve of the co mmodity*D. all of the above2. At a relative commodity price above equilibriumA. the excess demand for a commodity exceeds the excess supply of the commodityB. the quantity demanded of imports exceeds the quantity supplied of exports*C. the commodity price will fallD. all of the above3. 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 exports*D. the nation's demand for imports and supply of exports4. The offer curve of a nation bulges toward the axis measuring the nationsA. import commodity*B. export commodityC. export or import commodityD. nontraded commodity5. Export prices must rise for a nation to increase its exports because the nat ion:A. incurs increasing opportunity costs in export productionB. faces decreasing opportunity costs in producing import substitutesC. faces decreasing marginal rate of substitution in consumption*D. all of the above6. Which of the following statements regarding partial equilibrium analysis is falseA. It relies on traditional demand and supply curvesB. it isolates for study one market*C. it can be used to determine the equilibrium relative commodity price but no t the equilibrium quantity with tradeD. none of the above7. Which of the following statements regarding partial equilibrium analysis is trueA. The demand and supply curve are derived from the nation's production frontie r and indifference mapB. It shows the same basic information as offer curvesC. It shows the same equilibrium relative commodity prices as with offer curves *D. all of the above8. In what way does partial equilibrium analysis differ from general equilibr ium analysisA. The former but not the latter can be used to determine the equilibrium price with tradeB. the former but not the latter can be used to determine the equilibrium quant ity with tradeC. the former but not the latter takes into consideration the interaction among all markets in the economy*D. the former gives only an approximation to the answer sought.9. If the terms of trade of a nation are in a two-nation world, those of the t rade partner are:A. 3/4*B. 2/3C. 3/2D. 4/310. If the terms of trade increase in a two-nation world, those of the trade pa rtner:*A. deteriorateB. improveC. remain unchangedD. any of the above11. If a nation does not affect world prices by its trading, its offer curve:A. is a straight lineB. bulges toward the axis measuring the import commodity*C. intersects the straight-line segment of the world's offer curveD. intersects the positively-sloped portion of the world's offer curve12. If the nation's tastes for its import commodity increases:A. the nation's offer curve rotates toward the axis measuring its import commod ityB. the partner's offer curve rotates toward the axis measuring its import commo dityC. the partner's offer curve rotates toward the axis measuring its export commo dity*D. the nation's offer curve rotates toward the axis measuring its export commo dity13. If the nation's tastes for its import commodity increases:A. the nation's terms of trade remain unchanged*B. the nation's terms of trade deteriorateC. the partner's terms of trade deteriorateD. any of the above14. If the tastes for a nation import commodity increases, trade volume:*A. increasesB. declinesC. remains unchangedD. any of the above15. A deterioration of a nation's terms of trade causes the nation's welfare t o:A. deteriorateB. improveC. remain unchanged*D. any of the above思考题：提供曲线如何推导有何用途两国贸易时的均衡商品价格是如何决定的受哪些因素影响贸易条件的含义是贸易条件的改善意味着什么哪些因素可能导致贸易条件的改善Chapter 5: Factor Endowments and the Heckscher-Ohlin TheoryMultiple-Choice Questions1. The H-O model extends the classical trade model by:A. explaining the basis for comparative advantageB. examining the effect of trade on factor prices*C. both A and BD. neither A nor B2. Which is not an assumption of the H-O model:A. the same technology in both nationsB. constant returns to scale*C. complete specializationD. equal tastes in both nations3. With equal technology nations will have equal K/L in production if: *A. factor prices are the sameB. tastes are the sameC. production functions are the sameD. all of the above4. We say that commodity Y is K-intensive with respect to X when:A. more K is used in the production of Y than XB. less L is used in the production of Y than X*C. a lower L/K ratio is used in the production of Y than XD. a higher K/L is used in the production of X than Y5. When w/r falls, L/KA. falls in the production of both commodities*B. rises in the production of both commoditiesC. can rise or fallD. is not affected6. A nation is said to have a relative abundance of K if it has a:A. greater absolute amount of KB. smaller absolute amount of LC. higher L/K ratio*D. lower r/w7. A difference in relative commodity prices between nations can be based ona difference in:A. technologyB. factor endowmentsC. tastes*D. all of the above。

《国际经济学》选择题汇总版（附答案）Ch1-Ch31.The United States is less dependent on trade than most other countries becauserg.countr.wit.divers.resources.B) the United States is a “Superpower.”C)itar.powe.o.th.Unite.State.make.i.les.dependen.o.anything.D.th.Unite.State.invest.i.man.othe.countries.E.man.countrie.inves.i.th.Unite.States.2.Becaus.th.Constitutio.forbid.restraint.o.interstat.trade.A.th.U.S.ma.no.impos.tariff.o.import.fro.NAFT.countries.B.th.U.S.ma.no.affec.th.internationa.valu.o.th..U.S.C.th.U.S.ma.no.pu.restraint.o.foreig.investment.i.Californi.i.i.involve ..financia.intermediar.i.Ne.Yor.State.D.th.U.S.ma.no.impos.expor.duties.merc.betwee.Florid.an.Hawaii.3.Internationa.economic.ca.b.divide.int.tw.broa.sub-field.A.macr.an.micro.B.develope.an.les.developed.C.monetar.an.barter.D.internationa.trad.an.internationa.money.E.stati.an.dynamic.4.Internationa.monetar.analysi.focuse.o.A.th.rea.sid.o.th.internationa.economy.B.th.internationa.trad.sid.o.th.internationa.economy.C.th.internationa.investmen.sid.o.th.internationa.economy.D.th.issue.o.internationa.cooperatio.betwee.Centra.Banks.E.th.monetar.sid.o.th.internationa.economy.suc.a.currenc.exchange.5.Th.gravit.mode.offer..logica.explanatio.fo.th.fac.tha.A)trad.betwee.Asi.an.th.U.S.ha.grow.faste.tha.NAFT.trade.B.trad.i.service.ha.grow.faste.tha.trad.i.goods.C.trad.i.manufacture.ha.grow.faste.tha.i.agricultura.products.D.Intra-Europea.Unio.trad.exceed.internationa.trad.b.th.Europea.Union.E.th.U.S.trade.mor.wit.Wester.Europ.tha.i.doe.wit.Canada.6.Th.gravit.mode.explain.wh.A)trad.betwee.Swede.an.German.exceed.tha.betwee.Swede.an.Spain.B)countrie.wit.oi.reserve.ten.t.expor.oil.C)capita.ric.countrie.expor.capita.intensiv.products.D.intra-industr.trad.i.relativel.mor.importan.tha.othe.form.o.trad.betw ee.neighborin.countries.E.Europea.countrie.rel.mos.ofte.o.natura.resources.7.Wh.doe.th.gravit.mode.work.rg.becaus.the.wer.engage.i.internationa.trade.ernmen .promotio.o.trad.an.investment.rge.area.whic.raise.th.probabilit.tha.. productiv.activit.wil.tak.plac.withi.th.border.o.tha.country.D) Large economies tend to have large incomes and tend to spend more on imports.rg.economie.ten.t.avoi.tradin.wit.smal.economies.herlands.Belgium.an.Irelan.trad.considerabl.mor.wit.th.Unite.State.tha.wit.man.othe.countries.rg.countries.B.Thi.i.explaine.b.th.gravit.model.sinc.thes.ar.al.smal.countries.C) This fails to be consistent with the gravity model, since these are small countries.D)rg.countrie s.E)Thi.i.explaine.b.th.gravit.model.sinc.the.d.no.shar.borders.9.I.th.present.mos.o.th.export.fro.Chin.areA.manufacture.goods.B.services.C)primar.product.includin.agricultural.D.technolog.intensiv.products.E.overprice.b.worl.marke.standards.parativ.advantag.gain.fro.trad.becaus.i.A.i.producin.export.indirectl.mor.efficientl.tha.i.coul.alternatively.B.i.producin.import.indirectl.mor.efficientl.tha.i.coul.domestically.bo.units.bo.units.E.i.producin.export.whil.outsourcin.services.11.Th.Ricardia.mode.attribute.th.gain.fro.trad.associate.wit.th.princip parativ.advantag.resul.t.A.difference.i.technology.B.difference.i.preferences.C)bo.productivity.D.difference.i.resources.E.gravit.relationship.amon.countries.12..natio.engagin.i.trad.accordin.t.th.Ricardia.mode.wil.fin.it.consum ptio.bundl.A.insid.it.productio.possibilitie.frontier.B)o.it.productio.possibilitie.frontier.C)outsid.it.productio.possibilitie.frontier.D.insid.it.trade-partner'.productio.possibilitie.frontier.E)o.it.trade-partner'.productio.possibilitie.frontier.bo.i.th.onl.facto.o.productio.an.tha.wage.i.th.Unite.State.equa.$2.pe.hou.whil.wage.i.Japa.ar.$1.pe.hour.Productio.cost.woul.pare.t.Japa.i.bo.productivit.equale.4.unit.pe.hou.an.Japan'.1.unit.pe.hour.bo.productivit.equale.3.unit.pe.hou.an.Japan'.2.unit.pe.hour.bo.productivit.equale.2.unit.pe.hou.an.Japan'.3.unit.pe.hour.bo.productivit.equale.1.unit.pe.hou.an.Japan'.2.unit.pe.hour.bo.productivit.equale.1.unit.pe.hou.an.Japan'.4.unit.pe.hour.14.I..two-country.two-produc.world.th.statemen.“parativ.advantag.ove.Franc.i.auto.relativ.t.ships.i .equivalen.t.parativ.advantag.ove.German.i.ships.pare.t.German.i.auto.an.ships.parativ.advantag.ove.Franc.i.auto.an.ships.parativ.advantag.ove.Germany.E.Franc.shoul.produc.autos.15.I.th.Unite.States.productio.possibilit.frontie.wa.flatte.t.th.widge .axis.wherea.Germany'.wa.flatte.t.th.butte.axis.w.kno.tha.A) the United States has no comparative advantageparativ.advantag.i.butter.parativ.advantag.i.butter.parativ.advantage.i.bot.products.parativ.disadvantag.i.widgets.Ch4-Ch51.Th.Ricardia.mode.o.internationa.trad.demonstrate.tha.trad.ca.b.mutua ernment.restric.import.o.som.goods.A)Trad.ca.hav.substantia.effect.o..country'.distributio.o.income.B.Th.Ricardia.mode.i.ofte.incorrec.i.it.predictio.tha.trad.ca.b.mutuall.b eneficial.C. Impor.restriction.ar.th.resul.o.trad.war.betwee.hostil.countries.D.Import.ar.onl.restricte.whe.foreign-mad.good.d.no.mee.domesti.standar d.o.quality.E.Restriction.o.import.ar.intende.t.benefi.domesti.consumers.2.Japan'.trad.policie.wit.regar.t.ric.reflec.th.fac.tha.A.japanes.ric.farmer.hav.significan.politica.power.parativ.advantag.i.ric.productio.an.therefor.export.mos.o .it.ric.crop.C.ther.woul.b.n.gain.fro.trad.availabl.t.Japa.i.i.engage.i.fre.trad.i.r ice.D.ther.ar.gain.fro.trad.tha.Japa.capture.b.engagin.i.fre.trad.i.rice.E.Japa.import.mos.o.th.ric.consume.i.th.country.3.I.th.specifi.factor.model.whic.o.th.followin.i.treate.a..specifi.fac tor.A)LaborB) LandC) ClothD) FoodE) Technology4.Th.specifi.factor.mode.assume.tha.ther.ar._______.good.an._______.fa ctor(s.o.production.A) two; threeB) two; twoC) two; oneD) three; twoE) four; three5.Th.slop.o..country'.productio.possibilit.frontie.wit.clot.measure.o. th.horizonta.an.foo.measure.o.th.vertica.axi.i.th.specifi.factor.mode.i.equa.t._______.an.i._______.a.mor.clot.i.produced.A) -MPLF/MPLC; becomes steeperB) -MPLF/MPLC; becomes flatterC) -MPLF/MPLC; is constantD) -MPLC/MPLF; becomes steeperE) -MPLC/MPLF; is constante.t.produc.clot. wil.b.equa.t.A)th.slop.o.th.productio.possibilit.frontier.bo.i.th.productio.o.clot.time.th.pric.o.cloth.bo.i.th.productio.o.clot.t.th.margina bo.i.th.productio.o.foo.time.th.rati.o.th.pric.o.cloth.t.th .pric.o.food.bo.i.th.productio.o.clot.time.th.pric.o.cloth.bo.i.th.productio.o.clo th.7.I.th.specifi.factor.model.whic.o.th.followin.wil.increas.th.quantit. e.i.clot.production.A)an increase in the price of cloth relative to that of foodB) an increase in the price of food relative to that of clothC) a decrease in the price of laborD) an equal percentage decrease in the price of food and clothE) an equal percentage increase in the price of food and cloth8..countr.tha.doe.no.engag.i.trad.ca.benefi.fro.trad.onl.i.A)it has an absolute advantage in at least one good.B.i.employ..uniqu.technology.C.pre-trad.an.free-trad.relativ.price.ar.no.identical.D.it.wag.rat.i.belo.th.worl.average.E.pre-trad.an.free-trad.relativ.price.ar.identical.9.I.th.specifi.factor.model.th.effect.o.trad.o.welfar.ar._______.fo.mobil.factors._______e.t.produc.th.exporte.good.an.___ ____e.t.produc.th.importe.good.A)ambiguous; positive; negativeB) ambiguous; negative; positiveC) positive; ambiguous; ambiguousD) negative; ambiguous; ambiguousE) positive; positive; positive10.Th.effec.o.trad.o.specialize.employee.o.import-competin.industrie.w il.b._______.job.an._______.pa.becaus.the.ar.relativel.________.A)fewer; lower; mobileB) fewer; lower; immobileC) more; lower; immobileD) more; higher; mobileE) more; higher; immobile11.Ther.i..bia.i.th.politica.proces.agains.fre.trad.becaus.A)ther.i..hig.correlatio.betwee.th.volum.o.import.an.th.unemploymen.rat e.B.th.gain.fro.fre.trad.canno.b.measured.C.thos.wh.gai.fro.fre.trad.can'.compensat.thos.wh.lose.rg.donation.t.U.S.politica.campaigns.anize.tha.thos.wh.gain.12.In the 2-factor, 2 good Heckscher-Ohlin model, the two countries differinA)taste.an.preferences.itar.capabilities.C.th.siz.o.thei.economies.D.relativ.abundanc.o.factor.o.production.bo.productivities.13.I..countr.produce.goo..(measure.o.th.vertica.axis.an.goo..(measure. o.th.horizonta.axis).the.th.absolut.valu.o.th.slop.o.it.productio.poss ibilit.frontie.i.equa.t.A)th.opportunit.cos.o.goo.X.B.th.pric.o.goo..divide.b.th.pric.o.goo.Y.C.th.pric.o.goo..divide.b.th.pric.o.goo.Y.D.th.opportunit.cos.o.goo.Y.E.th.cos.o.capita.(assumin.tha.goo..i.capita.intensive.divide.b.th.cos. bor.14.I.th.2-factor..goo.Heckscher-Ohli.model.trad.wil._______.th.owner.o ..country'._______.facto.an.wil._______e.tha.facto.inten sively.A)benefit; abundant; exportB)harm; abundant; importC) benefit; scarce; exportD) benefit; scarce; importE) harm; scarce; export15.Th.assumptio.o.diminishin.return.i.th.Heckscher-Ohli.mode.mean.that .unlik.i.th.Ricardia.model.i.i.likel.tha.A.countrie.wil.consum.outsid.thei.productio.possibilit.frontier.B.countrie.wil.benefi.fro.fre.internationa.trade.C.countrie.wil.no.b.full.specialize.i.on.product.parativ.advantag.wil.no.determin.th.directio.o.trade.E.globa.productio.wil.decreas.unde.trade.16.If Japan is relatively capital rich and the United States is relatively land rich, and if food is relatively land intensive then trade between these two, formerly autarkic countries will result inA)a.increas.i.th.relativ.pric.o.foo.i.th.U.S.B.a.increas.i.th.relativ.pric.o.foo.i.Japan.C..globa.increas.i.th.relativ.pric.o.food.D..decreas.i.th.relativ.pric.o.foo.i.bot.countries.E.a.increas.i.th.relativ.pric.o.foo.i.bot.countries.17.Startin.fro.a.autark.(no-trade.situatio.wit.Heckscher-Ohli.model.i. bo.abundant.the.onc.trad.begin.A.ren.wil.b.unchange.bu.wage.wil.ris.i.H.B.wage.an.rent.shoul.ris.i.H.C.wage.an.rent.shoul.fal.i.H.D.wage.shoul.fal.an.rent.shoul.ris.i.H.E.wage.shoul.ris.an.rent.shoul.fal.i.H.18.The Leontieff ParadoxA.faile.t.suppor.th.validit.o.th.Heckscher-Ohli.model.parativ.advantage.C.supporte.th.validit.o.th.Heckscher-Ohli.model.D.faile.t.suppor.th.validit.o.th.Ricardia.theory.E.prove.tha.th.U.S.econom.i.differen.fro.al.others.19.Whic.o.th.followin.i.a.assertio.o.th.Heckscher-Ohli.model.A.Facto.pric.equalizatio.wil.occu.onl.i.ther.i.costles.mobilit.o.al.fac tor.acros.borders.B.A.increas.i..country'.labo.suppl.wil.increas.productio.o.bot.th.capit bor-intensiv.good.bo.i.mobil.an.capita.i.not.D.Th.wage-renta.rati.determine.th.capital-labo.rati.i..country'.industr ies.E.Facto.endowment.determin.th.technolog.tha.i.availabl.t..country.whic. parativ.advantage.20.Whic.o.th.followin.i.a.assertio.o.th.Heckscher-Ohli.model.A.A.increas.i..country'bor-int ensiv.goo.an.decreas.productio.o.th.capital-intensiv.good.B.A.increas.i..country'.labo.suppl.wil.increas.productio.o.bot.th.capitbor-intensiv.good.bo.i.mobil.an.capita.i.not.D.Facto.pric.equalizatio.wil.occu.onl.i.ther.i.costles.mobilit.o.al.fac tor.acros.borders.E.Facto.endowment.determin.th.technolog.tha.i.availabl.t..country.whic.parativ.advantage.Ch6-Ch101.If the ratio of price of cloth (PC) divided by the price of food (PF) increases in the international marketplace, thenA.th.term.o.trad.o.clot.exporter.wil.improve.B.al.countrie.woul.b.bette.off.C.th.term.o.trad.o.foo.exporter.wil.improve.D.th.term.o.trad.o.al.countrie.wil.improve.E.th.term.o.trad.o.clot.exporter.wil.worsen.2.If the ratio of price of cloth (PC) divided by the price of food (PF) increases in the international marketplace, thenA.worl.relativ.quantit.o.clot.supplie.wil.increase.B.worl.relativ.quantit.o.clot.supplie.an.demande.wil.increase.C.worl.relativ.quantit.o.clot.supplie.an.demande.wil.decrease.D.worl.relativ.quantit.o.clot.demande.wil.decrease.E.worl.relativ.quantit.o.foo.wil.increase.3.I.th.U.S.(.larg.country.impose..tarif.o.it.importe.good.thi.wil.ten.t.A.hav.n.effec.o.term.o.trade.B.improv.th.term.o.trad.o.th.Unite.States.C.improv.th.term.o.trad.o.al.countries.D.becaus..deterioratio.o.U.S.term.o.trade.E.rais.th.worl.pric.o.th.goo.importe.b.th.Unite.States.4.If Slovenia were a large country in world trade, then if it instituteda large set of subsidies for its exports, this mustA) decrease its marginal propensity to consume.B.hav.n.effec.o.it.term.o.trade.C.improv.it.term.o.trade.D.har.it.term.o.trade.E.har.worl.term.o.trade.5.Internal economies of scale arise when the cost per unitrger.rger.rger.rger.E.remain.constan.ove..broa.rang.o.output.6.Externa.economie.o.scal.wil._______.averag.cos.whe.outpu.i._______.b .________.A) reduce; increased; the industryB) reduce; increased; a firmC) increase; increased; a firmD) increase; increased; the industryE) reduce; reduce; the industry7.I.som.industrie.exhibi.interna.increasin.return.t.scal.i.eac.country .w.shoul.no.expec.t.se.petitio.i.thes.industries.B.intra-industr.trad.betwee.countries.C.inter-industr.trad.betwee.countries.D.hig.level.o.specializatio.i.bot.countries.E.increase.productivit.i.bot.countries.8..learnin.curv.relate._______.t._______.an.i..cas.o._______.returns.A) unit cost; cumulative production; dynamic decreasing returnsB) output per time period; long-run marginal cost; dynamic increasing returnsC) unit cost; cumulative production; dynamic increasing returnsD) output per time period; long-run marginal cost; dynamic decreasing returnsE) labor productivity; education; increasing marginal returns9.Pattern.o.interregiona.trad.ar.primaril.determine.b._______.rathe.tha._______.becaus.factor.o.productio.ar.generall.________.A) external economies; natural resources; mobileB) internal economies; external economies; mobileC) external economies; population; immobileD) internal economies; population; immobileE) population; external economies; immobilepetitio.i.associate.wit.A.produc.differentiation.B.price-takin.behavior.C.explici.consideratio.a.th.fir.leve.o.th.strategi.impac.o.othe.firms.p ricin.decisions.D.hig.profi.margin.i.th.lon.run.E.increasin.return.t.scale.petitio.wil.ear.A.positiv.monopol.profit.becaus.eac.sell..differentiate.product.B) zero economic profits because of free entryC.positiv.oligopol.profit.becaus.eac.fir.sell..differentiate.product.D.negativ.economi.profit.becaus.i.ha.economie.o.scale.E.positiv.economi.profi.i.i.engage.i.internationa.trade.mo.for.o.pric.discriminatio.i.internationa.trad.i.A.dumping.B.non-tarif.barriers.C.Voluntar.Expor.Restraints.D.preferentia.trad.arrangements.E.produc.boycotts.13.Conside.th.followin.tw.cases.I.th.first..U.S.fir.purchase.18.o..for eig.firm.I.th.second..U.S.fir.build..ne.productio.facilit.i..foreig.co untry.Bot.ar.________.wit.th.firs.referre.t.a._______.an.th.secon.a.__ ______.A) foreign direct investment (FDI) outflows; brownfield; greenfieldB) foreign direct investment (FDI) inflows; greenfield; brownfieldC) foreign direct investment (FDI) outflows; greenfield; brownfieldD) foreign direct investment (FDI) inflows; brownfield; greenfieldE) foreign direct investment (FDI); inflows; outflows14.Specifi.tariff.ar.A.impor.taxe.state.i.specifi.lega.statutes.B.impor.taxe.calculate.a..fixe.charg.fo.eac.uni.o.importe.goods.C.impor.taxe.calculate.a..fractio.o.th.valu.o.th.importe.goods.D.th.sam.a.impor.quotas.E.impor.taxe.calculate.base.solel.o.th.origi.country.15..proble.encountere.whe.implementin.a."infan.industry.tarif.i.tha.A.domesti.consumer.wil.purchas.th.foreig.goo.regardles.o.th.tariff.B) the industry may never "mature."C.mos.industrie.requir.tarif.protectio.whe.the.ar.mature.D.th.tarif.ma.hur.th.industry'.domesti.sales.E.th.tariff.fai.t.protec.th.domesti.producers.16.I.th.countr.levyin.th.tariff.th.tarif.wil.A.increas.bot.consume.an.produce.surplus.B.decreas.bot.th.consume.an.produce.surplus.C.decreas.consume.surplu.an.increas.produce.surplus.D.increas.consume.surplu.an.decreas.produce.surplus.E.decreas.consume.surplu.bu.leav.producer.surplu.unchanged.pute.producer.shif ponents.the.th.eff pute.industr.wil.A.increase.B) decreaseC.remai.th.same.D) depend on whether computers are PCs or "Supercomputers."E.n.longe.apply.ernmen.allow.ra.material.an.othe.intermediat.product.t.ente ..countr.dut.free.thi.generall.result.i.a(an.A.effectiv.tarif.rat.les.tha.th.nomina.tarif.rate.B.nomina.tarif.rat.les.tha.th.effectiv.tarif.rate.C.ris.i.bot.nomina.an.effectiv.tarif.rates.D.fal.i.bot.nomina.an.effectiv.tarif.rates.E.ris.i.onl.th.effectiv.tarif.rate.19.Shoul.th.hom.countr.b."large.relativ.t.it.trad.partners.it.impositi o.o..tarif.o.import.woul.lea.t.a.increas.i.domesti.welfar.i.th.term.o. th.trad.rectangl.excee.th.su.o.th.A.revenu.effec.plu.redistributio.effect.B.protectiv.effec.plu.revenu.effect.C.consumptio.effec.plu.redistributio.effect.D.productio.distortio.effec.plu.consumptio.distortio.effect.E.term.o.trad.gain.20.Th.efficienc.cas.mad.fo.fre.trad.i.tha.a.trad.distortion.suc.a.tari ff.ar.dismantle.an.removed.ernmen.tarif.revenu.wil.decrease.an.therefor.nationa.economi.welfa r.wil.decrease.ernmen.tarif.revenu.wil.decrease.an.therefor.nationa.economi.welfa r.wil.increase.C.deadweigh.losse.fo.producer.an.consumer.wil.decrease.henc.increasin.n ationa.economi.welfare.D.deadweigh.losse.fo.producer.an.consumer.wil.decrease.henc.decreasin.n ationa.economi.welfare.ernmen.tarif.revenu.wil.increase.henc.increasin.nationa.economi.we lfare.anizatio.determine.procedure.fo.th.settlemen.o.internationa .trad.disputes.A) World BankB) World Trade OrganizationC) International Monetary OrganizationD) International Bank for Reconstruction and DevelopmentE) The League of Nations22.Toda.U.S.protectionis.i.concentrate.i.A. high-tec.industries.bor-intensiv.industries.parativ.advantage.pute.intensiv.industries.E.capital-intensiv.industries.23.Th.quantitativ.importanc.o.U.S.protectio.o.th.domesti.clothin.indus tr.i.bes.explaine.b.th.fac.tha.bor.bor.C.mos.o.th.exporter.o.clothin.int.th.U.S.ar.poo.countries.anize.secto.i.th.U.S.E.th.technolog.involve.i.ver.advanced.24.Th.optimu.tarif.i.mos.likel.t.appl.t.A..smal.tarif.impose.b..smal.country.rg.country.rg.tarif.impose.b..smal.country.rg.country.E.a.a.valore.tarif.o..smal.country.25.Th.media.vote.mode.A.work.wel.i.th.are.o.trad.policy.B.i.no.intuitivel.reasonable.C.tend.t.resul.i.biase.tarif.rates.D.doe.no.wor.wel.i.th.are.o.trad.policy.E.i.no.widel.practice.i.th.Unite.States. By: 某某。

Chapter 34The Influence of Monetary and Fiscal Policy On Aggregate DemandTRUE/FALSE1. Both monetary policy and fiscal policy affect aggregate demand.ANS: T DIF: 1 REF: 34-0NAT: Analytic LOC: Monetary and fiscal policyTOP: Monetary policy | Fiscal policy MSC: Definitional2. For the U.S. economy, the most important reason for the downward slope of the aggregate-demand curve isthe interest-rate effect.ANS: T DIF: 2 REF: 34-1NAT: Analytic LOC: Aggregate demand and aggregate supplyTOP: Interest-rate effect MSC: Interpretive3. According to the theory of liquidity preference, the interest rate adjusts to balance the supply of, and demandfor, loanable funds.ANS: F DIF: 2 REF: 34-1NAT: Analytic LOC: The role of moneyTOP: Theory of liquidity preference MSC: Interpretive4. The theory of liquidity preference was developed by Irving Fisher.ANS: F DIF: 1 REF: 34-1NAT: Analytic LOC: The role of moneyTOP: Theory of liquidity preference | Economists MSC: Interpretive5. An increase in the money supply decreases the equilibrium interest rate and shifts the aggregate-demand curveto the right.ANS: T DIF: 2 REF: 34-1NAT: Analytic LOC: Monetary and fiscal policy TOP: Monetary injectionsMSC: Interpretive6. Other things the same, an increase in the price level causes the real value of the dollar to fall in the market forforeign-currency exchange.ANS: F DIF: 2 REF: 34-1NAT: Analytic LOC: Aggregate demand and aggregate supplyTOP: Exchange-rate effect MSC: Applicative7. Changes in monetary policy aimed at reducing aggregate demand involve decreasing the money supply orincreasing the interest rate.ANS: T DIF: 2 REF: 34-1NAT: Analytic LOC: Monetary and fiscal policy TOP: Monetary policyMSC: Interpretive8. For the most part, fiscal policy affects the economy in the short run while monetary policy primarily matters inthe long run.ANS: F DIF: 1 REF: 34-1NAT: Analytic LOC: Monetary and fiscal policyTOP: Fiscal policy | Monetary policy MSC: Interpretive9. For a country such as the U.S., the wealth effect exerts a very important influence on the slope of theaggregate-demand curve, since U.S. wealth is large relative to wealth in most other countries.ANS: F DIF: 1 REF: 34-1NAT: Analytic LOC: Monetary and fiscal policy TOP: Wealth effectMSC: Interpretive10. If the inflation rate is zero, then the nominal and real interest rate are the same.ANS: T DIF: 1 REF: 34-1NAT: Analytic LOC: Monetary and fiscal policyTOP: Nominal interest rate | Real interest rate MSC: Interpretive22512252 Chapter 34/The Influence of Monetary and Fiscal Policy On Aggregate Demand11. In liquidity preference theory, an increase in the interest rate, other things the same, decreases the quantity ofmoney demanded, but does not shift the money demand curve.ANS: T DIF: 1 REF: 34-1NAT: Analytic LOC: Monetary and fiscal policyTOP: Theory of liquidity preference MSC: Analytical12. An increase in the price level shifts the money demand curve to the left, causing interest rates to increase. ANS: F DIF: 1 REF: 34-1NAT: Analytic LOC: Monetary and fiscal policy TOP: Money demandMSC: Interpretive13. An increase in the money supply shifts the aggregate-supply curve to the right.ANS: F DIF: 1 REF: 34-1NAT: Analytic LOC: Monetary and fiscal policy TOP: Monetary policyMSC: Interpretive14. When the Fed increases the money supply, the interest rate decreases. This decrease in the interest rateincreases consumption and investment demand, so the aggregate-demand curve shifts to the right.ANS: T DIF: 2 REF: 34-1NAT: Analytic LOC: Monetary and fiscal policyTOP: Monetary policy | Aggregate-demand curve MSC: Analytical15. Stock prices often rise when the Fed raises interest rates.ANS: F DIF: 1 REF: 34-1NAT: Analytic LOC: Monetary and fiscal policyTOP: Stock market | Monetary policy MSC: Interpretive16. When the Fed announces a target for the federal funds rate, it essentially accommodates the day-to-dayfluctuations in money demand by adjusting the money supply accordingly.ANS: T DIF: 2 REF: 34-1NAT: Analytic LOC: Monetary and fiscal policyTOP: Federal funds rate | Monetary policy MSC: Interpretive17. If the marginal propensity to consume is 6/7, then the multiplier is 7.ANS: T DIF: 2 REF: 34-2NAT: Analytic LOC: Monetary and fiscal policy TOP: Multiplier effectMSC: Applicative18. If the marginal propensity to consume is 4/5, then a decrease in government spending of $1 billion decreasesthe demand for goods and services by $5 billion.ANS: T DIF: 2 REF: 34-2NAT: Analytic LOC: Monetary and fiscal policy TOP: Multiplier effectMSC: Applicative19. Both the multiplier effect and the investment accelerator tend to make the aggregate-demand curve shiftfurther than it does due to an initial increase in government expenditures.ANS: T DIF: 1 REF: 34-2NAT: Analytic LOC: Monetary and fiscal policy TOP: Multiplier effect | Investment MSC: Applicative20. The multiplier is computed as MPC / (1 - MPC).ANS: F DIF: 1 REF: 34-2NAT: Analytic LOC: Monetary and fiscal policy TOP: Multiplier effectMSC: Definitional21. Permanent tax cuts have a larger impact on consumption spending than temporary ones.ANS: T DIF: 1 REF: 34-2NAT: Analytic LOC: Monetary and fiscal policy TOP: TaxesMSC: ApplicativeChapter 34/The Influence of Monetary and Fiscal Policy On Aggregate Demand 2253 22. Some economists, called supply-siders, argue that changes in the money supply exert a strong influence onaggregate supply.ANS: F DIF: 2 REF: 34-2NAT: Analytic LOC: Monetary and fiscal policy TOP: Supply-side economicsMSC: Applicative23. In principle, the government could increase the money supply or increase government expenditures to try tooffset the effects of a wave of pessimism about the future of the economy.ANS: T DIF: 1 REF: 34-3NAT: Analytic LOC: Monetary and fiscal policyTOP: Stabilization policy | Expectations MSC: Applicative24. The main criticism of those who doubt the ability of the government to respond in a useful way to the businesscycle is that the theory by which money and government expenditures change output is flawed.ANS: F DIF: 2 REF: 34-3NAT: Analytic LOC: Monetary and fiscal policy TOP: Stabilization policyMSC: Definitional25. A significant lag for monetary policy is the time it takes to for a change in the money supply to change theeconomy. A significant lag for fiscal policy is the time it takes to pass legislation authorizing it.ANS: T DIF: 1 REF: 34-3NAT: Analytic LOC: Monetary and fiscal policy TOP: Stabilization policyMSC: Definitional26. Unemployment insurance and welfare programs work as automatic stabilizers.ANS: T DIF: 1 REF: 34-3NAT: Analytic LOC: Monetary and fiscal policy TOP: Automatic stabilizersMSC: Definitional27. Depending on the size of the multiplier and crowding-out effects, the rightward shift in aggregate demandfrom a tax cut could be larger or smaller than the tax cut.ANS: T DIF: 2 REF: 34-3NAT: Analytic LOC: Monetary and fiscal policy TOP: Multiplier effectMSC: Analytic28. During recessions, unemployment insurance payments tend to rise.ANS: T DIF: 2 REF: 34-3NAT: Analytic LOC: Monetary and fiscal policy TOP: Automatic stabilizersMSC: Interpretive29. During recessions, the government tends to run a budget deficit.ANS: T DIF: 1 REF: 34-3NAT: Analytic LOC: Monetary and fiscal policy TOP: Automatic stabilizersMSC: Applicative30. An implication of the Employment Act of 1946 is that the government should respond to changes in theprivate economy to stabilize aggregate demand.ANS: T DIF: 2 REF: 34-3NAT: Analytic LOC: Monetary and fiscal policy TOP: Employment Act of 1946MSC: InterpretiveSHORT ANSWER1. What is the difference between monetary policy and fiscal policy?ANS:The Federal Reserve Bank conducts U.S. monetary policy. It consists of policies to affect the financial side of the economy-most notably the supply of money in the economy. Fiscal policy is conducted by the executive and legislative branches of government, and entails decisions about taxes and government spending.DIF: 2 REF: 34-1 NAT: AnalyticLOC: Monetary and fiscal policy TOP: Fiscal policy | Monetary policyMSC: Definitional2254 Chapter 34/The Influence of Monetary and Fiscal Policy On Aggregate Demand2. There are three factors that help explain the slope of the aggregate demand curve. Which two are lessimportant? Why are they less important?ANS:The wealth effect and the exchange-rate effect are less important than the interest-rate effect in the United States. The wealth effect is not very important because it operates through changes in the real value of money, and money is only a small fraction of household wealth. So it is unlikely that changes in the price level will lead to large changes in consumption spending through this channel. The exchange-rate effect is not very important in the United States because trade with other countries represents a relatively small fraction of U.S. GDP. So a change in net-exports due to a change in the exchange rate is likely to have a relatively small impact on real GDP.DIF: 2 REF: 34-1 NAT: AnalyticLOC: Monetary and fiscal policy TOP: Wealth effect | Exchange-rate effectMSC: Analytical3. Explain why the interest rate is the opportunity cost of holding currency. What is the benefit of holdingcurrency?ANS:The nominal interest rate on currency is zero. The next best alternative is to buy a bond and earn interest. Currency is used as a medium of exchange. Bonds are illiquid and so are costly to convert to a medium of exchange.DIF: 2 REF: 34-1 NAT: AnalyticLOC: Monetary and fiscal policy TOP: Currency | Interest ratesMSC: Interpretive4. Describe the process in the money market by which the interest rate reaches its equilibrium value if it startsabove equilibrium.ANS:If the interest rate is above equilibrium, there is an excess supply of money. People with more money than they want to hold given the current interest rate deposit the money in banks and buy bonds. The increase in funds to lend out causes the interest rate to fall. As the interest rate falls, the quantity of money demanded increases, which tends to diminish the excess supply of money.DIF: 3 REF: 34-1 NAT: AnalyticLOC: Monetary and fiscal policy TOP: Money marketMSC: Analytical5. Use the money market to explain the interest-rate effect and its relation to the slope of the aggregate demandcurve.ANS:When the price level falls, people need less money for their transactions. The decreased demand for money leads to a decrease in interest rates as money demand shifts left. Lower interest rates encourage consumption and investment spending. Thus, a decrease in the price level raises the aggregate quantity of goods and services demanded.DIF: 2 REF: 34-1 NAT: AnalyticLOC: Monetary and fiscal policy TOP: Interest-rate effectMSC: Analytical6. Explain the logic according to liquidity preference theory by which an increase in the money supply changesthe aggregate demand curve.ANS:When the money supply increases, the interest rate falls. As the interest rate falls people will want to spend more and firms will want to build more factories and other capital goods. This increase in aggregate demand happens for any given price level, so aggregate demand shifts right.DIF: 2 REF: 34-1 NAT: AnalyticLOC: Monetary and fiscal policy TOP: Monetary policy | Aggregate-demand curveMSC: AnalyticalChapter 34/The Influence of Monetary and Fiscal Policy On Aggregate Demand 2255 7. How does a reduction in the money supply by the Fed make owning stocks less attractive?ANS:The reduction in the money supply raises the interest rate. So the return on bonds increases relative to the return on stocks. The increase in the interest rate also causes spending to fall, so that revenues and profits fall, making shares of ownership in corporations less valuable.DIF: 2 REF: 34-1 NAT: AnalyticLOC: Monetary and fiscal policy TOP: Money supply | Stock marketMSC: Applicative8. Suppose that the government spends more on a missile defense program. What does this do to aggregatedemand? How is you answer affected by the presence of the multiplier, crowding-out, taxes, andinvestment-accelerator effects?ANS:The increase in expenditures means that government spending rises. The aggregate demand curve shifts to the right. Aggregate demand shifts farther if there is a multiplier effect or an investment accelerator and shifts less if there is crowding out or if taxes are raised to increase government expenditures.DIF: 2 REF: 34-2 NAT: AnalyticLOC: Monetary and fiscal policy TOP: Multiplier effect | Crowding out | InvestmentMSC: Interpretive9. Suppose that there are no crowding-out effects and the MPC is .9. By how much must the governmentincrease expenditures to shift the aggregate demand curve right by $10 billion?ANS:An MPC of .9 means the multiplier = 1/(1 - .9) = 10. The increase in aggregate demand equals the multiplier times the change in government expenditures. So to increase aggregate demand by $10 billion, the government would have to increase expenditures by $1 billion.DIF: 2 REF: 34-2 NAT: AnalyticLOC: Monetary and fiscal policy TOP: Multiplier effectMSC: Analytical10. Suppose that the government increases expenditures by $150 billion while increasing taxes by $150 billion.Suppose that the MPC is .80 and that there are no crowding out or accelerator effects. What is the combined effects of these changes? Why is the combined change not equal to zero?ANS:The multiplier is 1/(1-MPC) = 1/(1-.8) = 1/.2 = 5. The increase of $150 in government expenditures leads to a shift of $150 billion x 5 = $750 billion in aggregate demand. The increase in taxes decreases income by $150 and so initially decreases consumption by $150 billion x MPC = $150 billion x .8 = $120 billion. This change in consumption will create a multiplier effect of $120 billion x 5 = $600. Thus the net change is $750 billion - $600 billion = $150 billion. The changes don’t cancel each other out, because a tax increase decreases consumption by less than the tax increase.DIF: 3 REF: 34-3 NAT: AnalyticLOC: Monetary and fiscal policy TOP: Multiplier effect | TaxesMSC: Analytical11. Suppose that consumers become pessimistic about the future health of the economy. What will happen toaggregate demand and to output? What might the president and Congress have to do to keep output stable? ANS:As consumers become pessimistic about the future of the economy, they cut their expenditures so that aggregate demand shifts left and output falls. The president and Congress could adjust fiscal policy to increase aggregate demand. They could either increase government spending, or cut taxes, or both.DIF: 2 REF: 34-3 NAT: AnalyticLOC: Monetary and fiscal policy TOP: Stabilization policy | ExpectationsMSC: Analytical2256 Chapter 34/The Influence of Monetary and Fiscal Policy On Aggregate Demand12. Explain how unemployment insurance acts as an automatic stabilizer.ANS:As income falls, unemployment rises. More people will apply for unemployment compensation from the government which raises government spending. An increase in government spending tends to increase aggregate demand, output, and income thereby lessening the effects of the recession.DIF: 2 REF: 34-3 NAT: AnalyticLOC: Monetary and fiscal policy TOP: Automatic stabilizersMSC: ApplicativeSec00 - The Influence of Monetary and Fiscal Policy on Aggregate Demand MULTIPLE CHOICE1. Shifts in the aggregate-demand curve can cause fluctuations ina.neither the level of output nor the level of prices.b.the level of output, but not in the level of prices.c.the level of prices, but not in the level of output.d.the level of output and in the level of prices.ANS: D DIF: 1 REF: 34-0NAT: Analytic LOC: Aggregate demand and aggregate supplyTOP: Economic fluctuations | Aggregate demand MSC: Interpretive2. Fiscal policy affects the economya.only in the short run.b.only in the long run.c.in both the short and long run.d.in neither the short nor the long run.ANS: C DIF: 1 REF: 34-0NAT: Analytic LOC: Monetary and fiscal policy TOP: Fiscal policyMSC: InterpretiveSec01 - The Influence of Monetary and Fiscal Policy on Aggregate Demand - How Monetary Policy Influences Aggregate DemandMULTIPLE CHOICE1. The interest-rate effecta.depends on the idea that increases in interest rates increase the quantity of money demanded.b.depends on the idea that increases in interest rates increase the quantity of money supplied.c.is the most important reason, in the case of the United States, for the downward slope of theaggregate-demand curve.d.is the least important reason, in the case of the United States, for the downward slope of theaggregate-demand curve.ANS: C DIF: 2 REF: 34-1NAT: Analytic LOC: Aggregate demand and aggregate supplyTOP: Interest-rate effect MSC: Interpretive2. The interest-rate effecta.depends on the idea that increases in interest rates decrease the quantity of goods and servicesdemanded.b.depends on the idea that increases in interest rates decrease the quantity of goods and servicessupplied.c.is responsible for the downward slope of the money-demand curve.d.is the least important reason, in the case of the United States, for the downward slope of theaggregate-demand curve.ANS: A DIF: 2 REF: 34-1NAT: Analytic LOC: Aggregate demand and aggregate supplyTOP: Interest-rate effect MSC: InterpretiveChapter 34/The Influence of Monetary and Fiscal Policy On Aggregate Demand 22573. The wealth effect stems from the idea that a higher price levela.increases the real value of households’ money holdings.b.decreases the real value of households’ money holdings.c.increases the real value of the domestic currency in foreign-exchange markets.d.decreases the real value of the domestic currency in foreign-exchange markets.ANS: B DIF: 2 REF: 34-1NAT: Analytic LOC: Aggregate demand and aggregate supplyTOP: Wealth effect MSC: Interpretive4. With respect to their impact on aggregate demand for the U.S. economy, which of the following represents thecorrect ordering of the wealth effect, interest-rate effect, and exchange-rate effect from most important to least important?a.wealth effect, exchange-rate effect, interest-rate effectb.exchange-rate effect, interest-rate effect, wealth effectc.interest-rate effect, wealth effect, exchange-rate effectd.interest-rate effect, exchange-rate effect, wealth effectANS: D DIF: 2 REF: 34-1NAT: Analytic LOC: Aggregate demand and aggregate supplyTOP: Aggregate-demand curve MSC: Interpretive5. For the U.S. economy, which of the following is the most important reason for the downward slope of theaggregate-demand curve?a.the wealth effectb.the interest-rate effectc.the exchange-rate effectd.the real-wage effectANS: B DIF: 1 REF: 34-1NAT: Analytic LOC: Monetary and fiscal policy TOP: Interest-rate effectMSC: Definitional6. Which of the following is likely more important for explaining the slope of the aggregate-demand curve of asmall economy than it is for the United States?a.the wealth effectb.the interest-rate effectc.the exchange-rate effectd.the real-wage effectANS: C DIF: 1 REF: 34-1NAT: Analytic LOC: Monetary and fiscal policy TOP: Exchange-rate effectMSC: Interpretive7. For the U.S. economy, which of the following helps explain the slope of the aggregate-demand curve?a.An increase in the price level decreases the interest rate.b.An increase in the price level increases the interest rate.c.An increase in the money supply decreases the interest rate.d.An increase in the money supply increases the interest rate.ANS: B DIF: 2 REF: 34-1NAT: Analytic LOC: Aggregate demand and aggregate supplyTOP: Interest-rate effect MSC: Analytic2258 Chapter 34/The Influence of Monetary and Fiscal Policy On Aggregate Demand8. The wealth effect helps explain the slope of the aggregate-demand curve. This effect isa.relatively important in the United States because expenditures on consumer durables is veryresponsive to changes in wealth.b.relatively important in the United States because consumption spending is a large part of GDP.c.relatively unimportant in the United States because money holdings are a small part of consumerwealth.d.relatively unimportant because it takes a large change in wealth to cause a significant change ininterest rates.ANS: C DIF: 1 REF: 34-1NAT: Analytic LOC: Monetary and fiscal policy TOP: Wealth effectMSC: Definitional9. Which of the following claims concerning the importance of effects that explain the slope of the U.S.aggregate-demand curve is correct?a.The exchange-rate effect is relatively small because exports and imports are a small part of realGDP.b.The interest-rate effect is relatively small because investment spending is not very responsive tointerest rate changes.c.The wealth effect is relatively large because money holdings are a significant portion of mosthouseholds' wealth.d.None of the above is correct.ANS: A DIF: 1 REF: 34-1NAT: Analytic LOC: Monetary and fiscal policy TOP: Aggregate-demand slope MSC: Interpretive10. Which particular interest rate(s) do we attempt to explain using the theory of liquidity preference?a.only the nominal interest rateb.both the nominal interest rate and the real interest ratec.only the interest rate on long-term bondsd.only the interest rate on short-term government bondsANS: B DIF: 2 REF: 34-1NAT: Analytic LOC: The role of moneyTOP: Theory of liquidity preference MSC: Interpretive11. According to John Maynard Keynes,a.the demand for money in a count ry is determined entirely by that nation’s central bank.b.the supply of money in a country is determined by the overall wealth of the citizens of that country.c.the interest rate adjusts to balance the supply of, and demand for, money.d.the interest rate adjusts to balance the supply of, and demand for, goods and services.ANS: C DIF: 2 REF: 34-1NAT: Analytic LOC: The role of moneyTOP: Theory of liquidity preference MSC: Interpretive12. According to the theory of liquidity preference,a.if the interest rate is below the equilibrium level, then the quantity of money people want to hold isless than the quantity of money the Fed has created.b.if the interest rate is above the equilibrium level, then the quantity of money people want to hold isgreater than the quantity of money the Fed has created.c.the demand for money is represented by a downward-sloping line on a supply-and-demand graph.d.All of the above are correct.ANS: C DIF: 2 REF: 34-1NAT: Analytic LOC: The role of moneyTOP: Theory of liquidity preference MSC: InterpretiveChapter 34/The Influence of Monetary and Fiscal Policy On Aggregate Demand 225913. According to classical macroeconomic theory,a.the price level is sticky in the short run and it plays only a minor role in the short-run adjustmentprocess.b.for any given level of output, the interest rate adjusts to balance the supply of, and demand for,money.c.output is determined by the supplies of capital and labor and the available production technology.d.All of the above are correct.ANS: C DIF: 2 REF: 34-1NAT: Analytic LOC: The role of money TOP: Classical dichotomyMSC: Interpretive14. According to classical macroeconomic theory,a.output is determined by the supplies of capital and labor and the available production technology.b.for any given level of output, the interest rate adjusts to balance the supply of, and demand for,loanable funds.c.given output and the interest rate, the price level adjusts to balance the supply of, and demand for,money.d.All of the above are correct.ANS: D DIF: 2 REF: 34-1NAT: Analytic LOC: The role of money TOP: Classical dichotomyMSC: Interpretive15. According to the liquidity preference theory, an increase in the overall price level of 10 percenta.increases the equilibrium interest rate, which in turn decreases the quantity of goods and servicesdemanded.b.decreases the equilibrium interest rate, which in turn increases the quantity of goods and servicesdemanded.c.increases the quantity of money supplied by 10 percent, leaving the interest rate and the quantity ofgoods and services demanded unchanged.d.decreases the quantity of money demanded by 10 percent, leaving the interest rate and the quantityof goods and services demanded unchanged.ANS: A DIF: 2 REF: 34-1NAT: Analytic LOC: The role of moneyTOP: Theory of liquidity preference MSC: Interpretive16. On the graph that depicts the theory of liquidity preference,a.the demand-for-money curve is vertical.b.the supply-of-money curve is vertical.c.the interest rate is measured along the horizontal axis.d.the price level is measured along the vertical axis.ANS: B DIF: 1 REF: 34-1NAT: Analytic LOC: The role of moneyTOP: Theory of liquidity preference MSC: Interpretive17. Using the liquidity-preference model, when the Federal Reserve increases the money supply,a.the equilibrium interest rate decreases.b.the aggregate-demand curve shifts to the left.c.the quantity of goods and services demanded is unchanged for a given price level.d.the long-run aggregate-supply curve shifts to the right.ANS: A DIF: 2 REF: 34-1NAT: Analytic LOC: Monetary and fiscal policyTOP: Theory of liquidity preference | Monetary policy MSC: Interpretive2260 Chapter 34/The Influence of Monetary and Fiscal Policy On Aggregate Demand18. In recent years, the Federal Reserve has conducted policy by setting a target for thea.size of the money supply.b.growth rate of the money supply.c.federal funds rate.d.discount rate.ANS: C DIF: 2 REF: 34-1NAT: Analytic LOC: Monetary and fiscal policyTOP: Federal funds rate | Monetary policy MSC: Definitional19. While a television news re porter might state that “Today the Fed lowered the federal funds rate from 5.5percent to 5.25 percent,” a more precise account of the Fed’s action would be as follows:a.“Today the Fed told its bond traders to conduct open-market operations in such a way that theequilibrium federal funds rate would decrease to 5.25 percent.”b.“Today the Fed lowered the discount rate by a quarter of a percentage point, and this action willforce the federal funds rate to drop by the same amount.”c.“Today the Fed to ok steps to decrease the money supply by an amount that is sufficient to decreasethe federal funds rate to 5.25 percent.”d.“Today the Fed took a step toward contracting aggregate demand, and this was done by loweringthe federal funds rate to 5.25 perc ent.”ANS: A DIF: 2 REF: 34-1NAT: Analytic LOC: Monetary and fiscal policyTOP: Federal funds rate | Monetary policy MSC: Interpretive20. Monetary policya.must be described in terms of interest-rate targets.b.must be described in terms of money-supply targets.c.can be described either in terms of the money supply or in terms of the interest rate.d.cannot be accurately described in terms of the interest rate or in terms of the money supply.ANS: C DIF: 2 REF: 34-1NAT: Analytic LOC: Monetary and fiscal policy TOP: Monetary policyMSC: Interpretive21. Which of the following is not a reason the aggregate-demand curve slopes downward? As the price levelincreases,a.firms may believe the relative price of their output has risen.b.real wealth declines.c.the interest rate increases.d.the exchange rate increases.ANS: A DIF: 1 REF: 34-1NAT: Analytic LOC: Monetary and fiscal policy TOP: Aggregate-demand slope MSC: Definitional22. Which of the following would not be an expected response from a decrease in the price level and so help toexplain the slope of the aggregate-demand curve?a.When interest rates fall, Sleepwell Hotels decides to build some new hotels.b.The exchange rate falls, so French restaurants in Paris buy more Iowa pork.c.Janet feels wealthier because of the price-level decrease and so she decides to remodel herbathroom.d.With prices down and wages fixed by contract, Millio’s Frozen Pizzas decides to lay off workers. ANS: D DIF: 1 REF: 34-1NAT: Analytic LOC: Monetary and fiscal policy TOP: Aggregate demand slope MSC: Interpretive。

Chapter 9Application: International TradeTRUE/FALSE1. Trade decisions are based on the principle of absolute advantage.ANS: F DIF: 1 REF: 9-1NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Absolute advantage MSC: Interpretive2. The sum of consumer and producer surplus measures the total benefits that buyers and sellers receive fromparticipating in a market.ANS: T DIF: 2 REF: 9-1NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Total surplus MSC: Interpretive3. According to the principle of comparative advantage, all countries can benefit from trading with one anotherbecause trade allows each country to specialize in doing what it does best.ANS: T DIF: 1 REF: 9-1NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Comparative advantage MSC: Interpretive4. The world price of cotton is the highest price of cotton observed anywhere in the world.ANS: F DIF: 1 REF: 9-1NAT: Analytic LOC: Gains from trade, specialization, and tradeTOP: Prices MSC: Definitional5. If the world price of a good is greater than the domestic price in a country that can engage in internationaltrade, then that country becomes an importer of that good.ANS: F DIF: 2 REF: 9-1NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: International trade | Prices MSC: Interpretive6. Without free trade, the domestic price of a good must be equal to the world price of a good.ANS: F DIF: 2 REF: 9-1NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Prices MSC: Interpretive7. The nation of Aviana soon will abandon its no-trade policy and adopt a free-trade policy. If the world priceof goose meat is $3 per pound and the domestic price of goose meat without trade is $2 per pound, then Aviana should export goose meat.ANS: T DIF: 2 REF: 9-1NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Prices | Comparative advantage | Exports MSC: Interpretive8. If Argentina exports oranges to the rest of the world, Argentina's producers of oranges are worse off, andArgentina's consumers of oranges are better off, as a result of trade.ANS: F DIF: 2 REF: 9-2NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Trade | Economic welfare MSC: Applicative9. If a country’s domesti c price of a good is lower than the world price, then that country has a comparativeadvantage in producing that good.ANS: T DIF: 2 REF: 9-2NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Comparative advantage | Prices MSC: Interpretive594Chapter 9 /Application: International Trade 595 10. When a country allows international trade and becomes an importer of a good, domestic producers of the goodare better off, and domestic consumers of the good are worse off.ANS: F DIF: 2 REF: 9-2NAT: Analytic LOC: Gains from trade, specialization, and tradeTOP: Gains from trade MSC: Interpretive11. If the United Kingdom imports tea cups from other countries, then U.K. producers of tea cups are better off,and U.K. consumers of tea cups are worse off, as a result of trade.ANS: F DIF: 2 REF: 9-2NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Trade | Economic welfare MSC: Applicative12. If Belgium exports chocolate to the rest of the world, then Belgian chocolate producers benefit from higherproducer surplus, Belgian chocolate consumers are worse off because of lower consumer surplus, and total surplus in Belgium increases because of the exports of chocolate.ANS: T DIF: 2 REF: 9-2NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Trade | Economic welfare MSC: Applicative13. In principle, trade can make a nation better off, because the gains to the winners exceed the losses to thelosers.ANS: T DIF: 1 REF: 9-2NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Trade | Economic welfare MSC: Interpretive14. Suppose the Ivory Coast, a small country, imports wheat at the world price of $4 per bushel. If the Ivory Coastimposes a tariff of $1 per bushel on imported wheat, then, other things equal, the price of wheat in Ivory Coast will increase, but by less than $1.ANS: F DIF: 2 REF: 9-2NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Tariffs | Prices MSC: Interpretive15. The small-economy assumption is necessary to analyze the gains and losses from international trade.ANS: F DIF: 1 REF: 9-2NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: International trade | Assumptions MSC: Interpretive16. The greater the elasticities of supply and demand, the smaller are the gains from trade.ANS: F DIF: 3 REF: 9-2NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Gains from trade | Price elasticities of demand and supplyMSC: Applicative17. If a tariff is placed on watches, the price of both domestic and imported watches will rise by the amount of thetariff.ANS: T DIF: 2 REF: 9-2NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Tariffs | Prices MSC: Interpretive18. When a government imposes a tariff on a product, the domestic price will equal the world price.ANS: F DIF: 2 REF: 9-2NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Tariffs | Prices MSC: Interpretive19. A tariff increases the quantity of imports and moves the market farther from its equilibrium without trade. ANS: F DIF: 2 REF: 9-2NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Tariffs | Imports MSC: Applicative596 Chapter 9 /Application: International Trade20. When a country abandons no-trade policies in favor of free-trade policies and becomes an importer of steel,then the domestic price of steel will increase as a result.ANS: F DIF: 2 REF: 9-2NAT: Analytic LOC: Gains from trade, specialization, and tradeTOP: Imports | Prices MSC: Interpretive21. When a country that imports shoes imposes a tariff on shoes, buyers of shoes in that country become worseoff.ANS: T DIF: 1 REF: 9-2NAT: Analytic LOC: Gains from trade, specialization, and tradeTOP: Tariffs MSC: Interpretive22. When a country that imports shoes imposes a tariff on shoes, buyers of shoes in that country become worse offand sellers of shoes in that country become better off.ANS: T DIF: 2 REF: 9-2NAT: Analytic LOC: Gains from trade, specialization, and tradeTOP: Tariffs MSC: Interpretive23. Deadweight loss measures the decrease in total surplus that results from a tariff or quota.ANS: T DIF: 2 REF: 9-2NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Deadweight losses MSC: Interpretive24. If a small country imposes a tariff on an imported good, domestic sellers will gain producer surplus, thegovernment will gain tariff revenue, and domestic consumers will gain consumer surplus.ANS: F DIF: 2 REF: 9-2NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Tariffs | Economic welfare MSC: Applicative25. Domestic consumers gain and domestic producers lose when the government imposes a tariff on imports. ANS: F DIF: 2 REF: 9-2NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Tariffs MSC: Interpretive26. The imposition of a tariff on imported wine will increase the domestic price of wine, decrease the quantity ofwine imported, and increase the quantity of wine produced domestically.ANS: T DIF: 2 REF: 9-2NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Prices | Imports | Tariffs MSC: Interpretive27. Suppose that Australia imposes a tariff on imported beef. If the increase in producer surplus is $100 million,the increase in tariff revenue is $200 million, and the reduction in consumer surplus is $500 million, thedeadweight loss of the tariff is $300 million.ANS: F DIF: 2 REF: 9-2NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Tariffs | Deadweight losses MSC: Applicative28. Suppose Ecuador imposes a tariff on imported bananas. If the increase in producer surplus is $50 million, thereduction in consumer surplus is $150 million, and the deadweight loss of the tariff is $30 million, then the tariff generates $130 million in revenue for the government.ANS: T DIF: 3 REF: 9-2NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Tariffs | Deadweight losses MSC: Applicative29. Tariffs cause deadweight loss because they move the price of an imported product closer to the equilibriumwithout trade, thus reducing the gains from trade.ANS: T DIF: 2 REF: 9-2NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Tariffs | Deadweight losses MSC: InterpretiveChapter 9 /Application: International Trade 597 30. Import quotas and tariffs both cause the quantity of imports to fall.ANS: T DIF: 1 REF: 9-2NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Tariffs | Import quotas MSC: Interpretive31. Import quotas and tariffs make domestic sellers better off and domestic buyers worse off.ANS: T DIF: 2 REF: 9-2NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Tariffs | Import quotas | Economic welfare MSC: Interpretive32. Economists agree that trade ought to be restricted if free trade means that domestic jobs might be lost becauseof foreign competition.ANS: F DIF: 2 REF: 9-3NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Trade policy | Employment MSC: Interpretive33. Free trade causes job losses in industries in which a country does not have a comparative advantage, but it alsocauses job gains in industries in which the country has a comparative advantage.ANS: T DIF: 2 REF: 9-3NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Comparative advantage | Employment MSC: Interpretive34. Most economists support the infant-industry argument because it is so easy to implement in practice.ANS: F DIF: 1 REF: 9-3NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Trade policy MSC: Interpretive35. If Honduras were to subsidize the production of wool blankets and sell them in Sweden at artificially lowprices, the Swedish economy would be worse off.ANS: F DIF: 2 REF: 9-3NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Trade policy | Economic welfare MSC: Interpretive36. Policymakers often consider trade restrictions in order to protect domestic producers from foreign competitors. ANS: T DIF: 1 REF: 9-3NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Trade policy MSC: Interpretive37. GATT is an example of a successful unilateral approach to achieving free trade.ANS: F DIF: 2 REF: 9-3NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: GATT MSC: Interpretive38. NAFTA is an example of a multilateral approach to achieving free trade.ANS: T DIF: 2 REF: 9-3NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: NAFTA MSC: Interpretive39. The rules established under the General Agreement on Tariffs and Trade (GATT) are enforced by aninternational body called the World Trade Organization (WTO).ANS: T DIF: 1 REF: 9-3NAT: Analytic LOC: Gains from trade, specialization, and tradeTOP: GATT | WTO MSC: Definitional40. A multilateral approach to free trade has greater potential to increase the gains from trade than a unilateralapproach, because the multilateral approach can reduce trade restrictions abroad as well as at home.ANS: T DIF: 2 REF: 9-3NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Trade policy MSC: Interpretive598 Chapter 9 /Application: International Trade41. The results of a 2007 Los Angeles Times poll suggest that a significant majority of Americans believe that freeinternational trade helps the American economy.ANS: F DIF: 2 REF: 9-4NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Trade policy MSC: Interpretive42. The results of a 2007 Los Angeles Times poll suggest that the percentage of Americans who believe trade isharmful to the economy exceeds the percentage of Americans who believe trade is beneficial to the economy. ANS: T DIF: 2 REF: 9-4NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Trade policy MSC: Interpretive43. Most economists view the United States as an ongoing experiment that raises serious doubts about the virtuesof free trade.ANS: F DIF: 1 REF: 9-4NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Trade policy MSC: InterpretiveChapter 9 /Application: International Trade 599 SHORT ANSWER1. Use the graph to answer the following questions about CDs.a.What is the equilibrium price of CDs before trade?b.What is the equilibrium quantity of CDs before trade?c.What is the price of CDs after trade is allowed?d.What is the quantity of CDs exported after trade is allowed?e.What is the amount of consumer surplus before trade?f.What is the amount of consumer surplus after trade?g.What is the amount of producer surplus before trade?h.What is the amount of producer surplus after trade?i.What is the amount of total surplus before trade?j.What is the amount of total surplus after trade?k.What is the change in total surplus because of trade?ANS:a.$12b.50c.$15d.30e.$250f.$122.50g.$250h.$422.50i.$500j.$545k.$45DIF: 2 REF: 9-2 NAT: AnalyticLOC: Gains from trade, specialization and trade TOP: Exports | Economic welfare MSC: Applicative600 Chapter 9 /Application: International Trade2. Using the graph below, answer the following questions about hammers.a.What is the equilibrium price of hammers before trade?b.What is the equilibrium quantity of hammers before trade?c.What is the price of hammers after trade is allowed?d.What is the quantity of hammers imported after trade is allowed?e.What is the amount of consumer surplus before trade?f.What is the amount of consumer surplus after trade?g.What is the amount of producer surplus before trade?h.What is the amount of producer surplus after trade?i.What is the amount of total surplus before trade?j.What is the amount of total surplus after trade?k.What is the change in total surplus because of trade?ANS:a.$14b.90c.$10d.85e.$360f.$810g.$405h.$125i.$765j.$935k.$170DIF: 2 REF: 9-2 NAT: AnalyticLOC: Gains from trade, specialization and trade TOP: Imports | Economic welfare MSC: ApplicativeChapter 9 /Application: International Trade 601 3. Using the graph, assume that the government imposes a $1 tariff on hammers. Answer the following questionsgiven this information.a.What is the domestic price and quantity demanded of hammers after the tariff is imposed?b.What is the quantity of hammers imported before the tariff?c.What is the quantity of hammers imported after the tariff?d.What would be the amount of consumer surplus before the tariff?e.What would be the amount of consumer surplus after the tariff?f.What would be the amount of producer surplus before the tariff?g.What would be the amount of producer surplus after the tariff?h.What would be the amount of government revenue because of the tariff?i.What would be the total amount of deadweight loss due to the tariff?ANS:a.$6, 84b.66c.44d.$384e.$294f.$45g.$80h.$44i.$11DIF: 2 REF: 9-2 NAT: AnalyticLOC: Gains from trade, specialization and trade TOP: Tariffs | Economic welfare MSC: Applicative4. How does an import quota differ from an equivalent tariff?ANS:Both the import quota and the tariff raise the domestic price of the good, reduce the welfare of domestic consumers, increase the welfare of domestic producers, and cause deadweight losses. The only difference for the economy is that the tariff raises revenue for the government, while the import quota creates surplus for license holders.DIF: 2 REF: 9-2 NAT: AnalyticLOC: Gains from trade, specialization and trade TOP: Tariffs | Import quotasMSC: Interpretive602 Chapter 9 /Application: International Trade5. Characterize the two different approaches a nation can take to achieve free trade. Does one approach have anadvantage over the other?ANS:A unilateral approach is when a country removes its trade restrictions on its own. A multilateral approach is when a country removes its trade restrictions while other countries do the same. A multilateral approach has two advantages. The first is that it has the potential to result in freer trade because it can reduce trade restrictions abroad as well as at home. If international negotiations fail, however, the result could be more restricted trade than under a unilateral approach. Also, the multilateral approach may have a political advantage and can sometimes win political support when a unilateral reduction cannot.DIF: 2 REF: 9-3 NAT: AnalyticLOC: Gains from trade, specialization and trade TOP: Trade policyMSC: Interpretive6. What are the arguments in favor of trade restrictions, and what are the counterarguments? According to mosteconomists, do any of these arguments really justify trade restrictions? Explain.ANS:Arguments mentioned in the text include the jobs argument, the national security argument, the infant industry argument, the unfair competition argument, and the protection-as-a-bargaining-chip argument. These arguments and counter-arguments are outlined in section 9-3 of the text. Most economists would dismiss the jobs argument, the infant industry argument, and the unfair competition argument on strictly economic grounds. The bargaining-chip argument carries high risks of economic harm if the threat doesn't work. The national-security argument balances economic loss from trade restriction against the benefit of long-term national survival, and is probably the argument that economists would most likely buy if it were clear that the industry being protected was clearly crucial to national security.DIF: 2 REF: 9-3 NAT: AnalyticLOC: Gains from trade, specialization and trade TOP: Trade policyMSC: InterpretiveSec00 - Application: International TradeMULTIPLE CHOICE1. An important factor in the decline of the U.S. textile industry over the past 100 or so years isa.foreign competitors that can produce quality textile goods at low cost.b.lower prices of goods that are substitutes for clothing.c. a decrease in Americans’ demand for clothing, due to increased incomes and the fact that clothingis an inferior good.d.the fact that the minimum wage in the U.S. has failed to keep pace with the cost of living.ANS: A DIF: 1 REF: 9-0NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: International trade MSC: Interpretive2. With which of the Ten Principles of Economics is the study of international trade most closely connected?a.People face tradeoffs.b.Trade can make everyone better off.ernments can sometimes improve market outcomes.d.Prices rise when the government prints too much money.ANS: B DIF: 1 REF: 9-0NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: International trade MSC: Interpretive3. Which of the following tools and concepts is useful in the analysis of international trade?a.total surplusb.domestic supplyc.equilibrium priced.All of the above are correct.ANS: D DIF: 1 REF: 9-0NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: International trade MSC: InterpretiveChapter 9 /Application: International Trade 6034. A logical starting point from which the study of international trade begins isa.the recognition that not all markets are competitive.b.the recognition that government intervention in markets sometimes enhances the economic welfareof the society.c.the principle of absolute advantage.d.the principle of comparative advantage.ANS: D DIF: 1 REF: 9-0NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: International trade | Comparative advantage MSC: InterpretiveSec01 - Application: International Trade - The Determinants of TradeMULTIPLE CHOICE1. What is the fundamental basis for trade among nations?a.shortages or surpluses in nations that do not tradeb.misguided economic policiesc.absolute advantageparative advantageANS: D DIF: 1 REF: 9-1NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: International trade | Comparative advantage MSC: Interpretive2. Patterns of trade among nations are primarily determined bya.cultural considerations.b.political considerations.parative advantage.d.differences in the income elasticity of demand among nations.ANS: C DIF: 1 REF: 9-1NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: International trade | Comparative advantage MSC: Interpretive3. The nation of Pineland forbids international trade. In Pineland, you can buy 1 pound of fish for 2 pounds ofbeef. In other countries, you can buy 1 pound of fish for 1.5 pounds of beef. These facts indicate thata.Pineland has a comparative advantage, relative to other countries, in producing fish.b.other countries have a comparative advantage, relative to Pineland, in producing beef.c.the price of beef in Pineland exceeds the world price of beef.d.if Pineland were to allow trade, it would import fish.ANS: D DIF: 2 REF: 9-1NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Comparative advantage | World price MSC: Applicative4. The nation of Waterland forbids international trade. In Waterland, you can obtain a computer by trading 2bicycles. In other countries, you can obtain a computer by trading 3 bicycles. These facts indicate thata.if Waterland were to allow trade, it would export computers.b.Waterland has an absolute advantage, relative to other countries, in producing computers.c.Waterland has a comparative advantage, relative to other countries, in producing bicycles.d.All of the above are correct.ANS: A DIF: 2 REF: 9-1NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Comparative advantage MSC: Applicative5. The principle of comparative advantage asserts thata.not all countries can benefit from trade with other countries.b.the world price of a good will prevail in all countries, regardless of whether those countries allowinternational trade in that good.c.countries can become better off by exporting goods, but they cannot become better off by importinggoods.d.countries can become better off by specializing in what they do best.ANS: D DIF: 1 REF: 9-1NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Comparative advantage MSC: Interpretive6. A tax on an imported good is called aa.quota.b.tariff.c.supply tax.d.trade tax.ANS: B DIF: 1 REF: 9-1NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Tariffs MSC: Definitional7. A tariff is aa.limit on how much of a good can be exported.b.limit on how much of a good can be imported.c.tax on an exported good.d.tax on an imported good.ANS: D DIF: 1 REF: 9-1NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Tariffs MSC: Definitional8. The price of a good that prevails in a world market is called thea.absolute price.b.relative price.parative price.d.world price.ANS: D DIF: 1 REF: 9-1NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Price | International trade MSC: Definitional9. The price of sugar that prevails in international markets is called thea.export price of sugar.b.import price of sugar.parative-advantage price of sugar.d.world price of sugar.ANS: D DIF: 1 REF: 9-1NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Price | International trade MSC: Definitional10. If a country allows trade and, for a certain good, the domestic price without trade is higher than the worldprice,a.the country will be an exporter of the good.b.the country will be an importer of the good.c.the country will be neither an exporter nor an importer of the good.d.Additional information is needed about demand to determine whether the country will be anexporter of the good, an importer of the good, or neither.ANS: B DIF: 2 REF: 9-1NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Prices | Imports MSC: Interpretive11. If a country allows trade and, for a certain good, the domestic price without trade is lower than the world price,a.the country will be an exporter of the good.b.the country will be an importer of the good.c.the country will be neither an exporter nor an importer of the good.d.Additional information is needed about demand to determine whether the country will be anexporter of the good, an importer of the good, or neither.ANS: A DIF: 2 REF: 9-1NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Prices | Exports MSC: Interpretive12. For any country, if the world price of zinc is higher than the domestic price of zinc without trade, that countryshoulda.export zinc, since that country has a comparative advantage in zinc.b.import zinc, since that country has a comparative advantage in zinc.c.neither export nor import zinc, since that country cannot gain from trade.d.neither export nor import zinc, since that country already produces zinc at a low cost compared toother countries.ANS: A DIF: 2 REF: 9-1NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Exports | Comparative advantage MSC: Applicative13. If the world price of textiles is higher than Vietnam’s domestic price of textiles without trade, then Vietnama.should import textiles.b.has a comparative advantage in textiles.c.should produce just enough textiles to meet its domestic demand.d.should refrain altogether from producing textiles.ANS: B DIF: 2 REF: 9-1NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Prices | Comparative advantage MSC: Interpretive14. Assume, for Singapore, that the domestic price of soybeans without international trade is higher than the worldprice of soybeans. This suggests that, in the production of soybeans,a.Singapore has a comparative advantage over other countries and Singapore will import soybeans.b.Singapore has a comparative advantage over other countries and Singapore will export soybeans.c.other countries have a comparative advantage over Singapore and Singapore will import soybeans.d.other countries have a comparative advantage over Singapore and Singapore will export soybeans. ANS: C DIF: 2 REF: 9-1NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Prices | Comparative advantage MSC: Applicative15. Assume, for the U.S., that the domestic price of beef without international trade is lower than the world priceof beef. This suggests that, in the production of beef,a.the U.S. has a comparative advantage over other countries and the U.S. will export beef.b.the U.S. has a comparative advantage over other countries and the U.S. will import beef.c.other countries have a comparative advantage over the U.S. and the U.S. will export beef.d.other countries have a comparative advantage over the U.S. and the U.S. will import beef.ANS: A DIF: 2 REF: 9-1NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Prices | Comparative advantage MSC: Applicative。

Chapter 8Application: the Costs of TaxationTRUE/FALSE1. Total surplus is always equal to the sum of consumer surplus and producer surplus.ANS: F DIF: 2 REF: 8-1 NAT: AnalyticLOC: Supply and demand TOP: Total surplusMSC: Interpretive2. Total surplus in a market does not change when the government imposes a tax on that market because the lossof consumer surplus and producer surplus is equal to the gain of government revenue.ANS: F DIF: 2 REF: 8-1 NAT: AnalyticLOC: Supply and demand TOP: Total surplusMSC: Interpretive3. When a tax is imposed on buyers, consumer surplus and producer surplus both decrease.ANS: T DIF: 2 REF: 8-1 NAT: AnalyticLOC: Supply and demand TOP: Consumer surplus | Producer surplusMSC: Interpretive4. When a tax is imposed on buyers, consumer surplus decreases but producer surplus increases.ANS: F DIF: 2 REF: 8-1 NAT: AnalyticLOC: Supply and demand TOP: Consumer surplus | Producer surplusMSC: Interpretive5. When a tax is imposed on sellers, producer surplus decreases but consumer surplus increases.ANS: F DIF: 2 REF: 8-1 NAT: AnalyticLOC: Supply and demand TOP: Consumer surplus | Producer surplusMSC: Interpretive6. When a tax is imposed on sellers, consumer surplus and producer surplus both decrease.ANS: T DIF: 2 REF: 8-1 NAT: AnalyticLOC: Supply and demand TOP: Consumer surplus | Producer surplusMSC: Interpretive7. Taxes affect market participants by increasing the price paid by the buyer and received by the seller.ANS: F DIF: 1 REF: 8-1 NAT: AnalyticLOC: Supply and demand TOP: Taxes MSC: Applicative8. Taxes affect market participants by increasing the price paid by the buyer and decreasing the price received bythe seller.ANS: T DIF: 1 REF: 8-1 NAT: AnalyticLOC: Supply and demand TOP: Taxes MSC: Applicative9. A tax raises the price received by sellers and lowers the price paid by buyers.ANS: F DIF: 1 REF: 8-1 NAT: AnalyticLOC: Supply and demand TOP: Efficiency MSC: Interpretive10. Normally, both buyers and sellers of a good become worse off when the good is taxed.ANS: T DIF: 2 REF: 8-1 NAT: AnalyticLOC: Supply and demand TOP: Welfare MSC: Interpretive11. When a good is taxed, the tax revenue collected by the government equals the decrease in the welfare ofbuyers and sellers caused by the tax.ANS: F DIF: 2 REF: 8-1 NAT: AnalyticLOC: Supply and demand TOP: Welfare | Tax revenueMSC: Interpretive529530 Chapter 8 /Application: the Costs of Taxation12. A tax places a wedge between the price buyers pay and the price sellers receive.ANS: T DIF: 1 REF: 8-1 NAT: AnalyticLOC: Supply and demand TOP: Efficiency MSC: Interpretive13. A tax on a good causes the size of the market to increase.ANS: F DIF: 1 REF: 8-1 NAT: AnalyticLOC: Supply and demand TOP: Efficiency MSC: Interpretive14. A tax on a good causes the size of the market to shrink.ANS: T DIF: 1 REF: 8-1 NAT: AnalyticLOC: Supply and demand TOP: Efficiency MSC: Interpretive15. When a tax is imposed, the loss of consumer surplus and producer surplus as a result of the tax exceeds the taxrevenue collected by the government.ANS: T DIF: 2 REF: 8-1 NAT: AnalyticLOC: Supply and demand TOP: Welfare MSC: Interpretive16. Economists use the government’s tax revenue to measure the public benefit from a tax.ANS: T DIF: 2 REF: 8-1 NAT: AnalyticLOC: Supply and demand TOP: Welfare MSC: Interpretive17. Because taxes distort incentives, they cause markets to allocate resources inefficiently.ANS: T DIF: 2 REF: 8-1 NAT: AnalyticLOC: Supply and demand TOP: Efficiency MSC: Interpretive18. Taxes cause deadweight losses because they prevent buyers and sellers from realizing some of the gains fromtrade.ANS: T DIF: 2 REF: 8-1 NAT: AnalyticLOC: Supply and demand TOP: Deadweight lossMSC: Interpretive19. As the price elasticities of supply and demand increase, the deadweight loss from a tax increases.ANS: T DIF: 2 REF: 8-2 NAT: AnalyticLOC: Elasticity TOP: Elasticity | Deadweight loss MSC: Applicative20. The greater the elasticity of demand, the smaller the deadweight loss of a tax.ANS: F DIF: 2 REF: 8-2 NAT: AnalyticLOC: Elasticity TOP: Elasticity | Deadweight loss MSC: Interpretive21. The more inelastic are demand and supply, the greater is the deadweight loss of a tax.ANS: F DIF: 2 REF: 8-2 NAT: AnalyticLOC: Elasticity TOP: Elasticity | Deadweight loss MSC: Applicative22. The elasticities of the supply and demand curves in the market for cigarettes affect how much a tax distortsthat market.ANS: T DIF: 2 REF: 8-2 NAT: AnalyticLOC: Elasticity TOP: Elasticity | Deadweight loss MSC: Interpretive23. If a tax did not induce buyers or sellers to change their behavior, it would not cause a deadweight loss. ANS: T DIF: 2 REF: 8-2 NAT: AnalyticLOC: Supply and demand TOP: Deadweight lossMSC: Interpretive24. The most important tax in the U.S. economy is the tax on corporations’ profits.ANS: F DIF: 1 REF: 8-2 NAT: AnalyticLOC: Supply and demand TOP: Labor MSC: Definitional25. The Social Security tax, and to a large extent, the federal income tax, are labor taxes.ANS: T DIF: 1 REF: 8-2 NAT: AnalyticLOC: Supply and demand TOP: Labor MSC: InterpretiveChapter 8 /Application: the Costs of Taxation 531 26. Taxes on labor tend to increase the number of hours that people choose to work.ANS: F DIF: 1 REF: 8-2 NAT: AnalyticLOC: Supply and demand TOP: Labor MSC: Interpretive27. Taxes on labor tend to encourage the elderly to retire early.ANS: T DIF: 1 REF: 8-2 NAT: AnalyticLOC: Supply and demand TOP: Labor MSC: Interpretive28. Taxes on labor tend to encourage second earners to stay at home rather than work in the labor force.ANS: T DIF: 1 REF: 8-2 NAT: AnalyticLOC: Supply and demand TOP: Labor MSC: Interpretive29. Economists disagree on whether labor taxes have a small or large deadweight loss.ANS: T DIF: 1 REF: 8-2 NAT: AnalyticLOC: Supply and demand TOP: Labor | Deadweight lossMSC: Definitional30. The demand for bread is less elastic than the demand for donuts; hence, a tax on bread will create a largerdeadweight loss than will the same tax on donuts, other things equal.ANS: F DIF: 2 REF: 8-2 NAT: AnalyticLOC: Elasticity TOP: Elasticity | Deadweight loss MSC: Applicative31. The larger the deadweight loss from taxation, the larger the cost of government programs.ANS: T DIF: 2 REF: 8-2 NAT: AnalyticLOC: Supply and demand TOP: Deadweight lossMSC: Interpretive32. A tax on insulin is likely to cause a very large deadweight loss to society.ANS: F DIF: 2 REF: 8-2 NAT: AnalyticLOC: Elasticity TOP: Deadweight loss | Elasticity MSC: Applicative33. The deadweight loss of a tax rises even more rapidly than the size of the tax.ANS: T DIF: 2 REF: 8-3 NAT: AnalyticLOC: Supply and demand TOP: Deadweight lossMSC: Interpretive34. As the size of a tax increases, the government's tax revenue rises, then falls.ANS: T DIF: 2 REF: 8-3 NAT: AnalyticLOC: Supply and demand TOP: Laffer curve MSC: Interpretive35. Tax revenues increase in direct proportion to increases in the size of the tax.ANS: F DIF: 2 REF: 8-3 NAT: AnalyticLOC: Supply and demand TOP: Tax revenue MSC: Interpretive36. If the size of a tax doubles, the deadweight loss doubles.ANS: F DIF: 3 REF: 8-3 NAT: AnalyticLOC: Supply and demand TOP: Deadweight lossMSC: Applicative37. If the size of a tax triples, the deadweight loss increases by a factor of six.ANS: F DIF: 3 REF: 8-3 NAT: AnalyticLOC: Supply and demand TOP: Deadweight lossMSC: Applicative38. A tax on unimproved land falls entirely on landowners because the supply of land is perfectly inelastic. ANS: T DIF: 2 REF: 8-3 NAT: AnalyticLOC: Supply and demand TOP: Land tax MSC: Interpretive39. Because the supply of land is perfectly elastic, the deadweight loss of a tax on land is very large.ANS: F DIF: 2 REF: 8-3 NAT: AnalyticLOC: Elasticity TOP: Land tax | Deadweight loss MSC: Interpretive532 Chapter 8 /Application: the Costs of Taxation40. Economist Arthur Laffer made the argument that tax rates in the United States were so high that reducing therates would increase tax revenue.ANS: T DIF: 2 REF: 8-3 NAT: AnalyticLOC: Supply and demand TOP: Laffer curve MSC: Definitional41. The Laffer curve is the curve showing how tax revenue varies as the size of the tax varies.ANS: T DIF: 2 REF: 8-3 NAT: AnalyticLOC: Supply and demand TOP: Laffer curve MSC: Definitional42. The result of the large tax cuts in the first Reagan Administration demonstrated very convincingly that ArthurLaffer was correct when he asserted that cuts in tax rates would increase tax revenue.ANS: F DIF: 2 REF: 8-3 NAT: AnalyticLOC: Supply and demand TOP: Laffer curve MSC: Interpretive43. The idea that tax cuts would increase the quantity of labor supplied, thus increasing tax revenue, became knowas supply-side economics.ANS: T DIF: 2 REF: 8-3 NAT: AnalyticLOC: Supply and demand TOP: Supply-side economicsMSC: Definitional44. The Laffer curve illustrates how taxes in markets with greater elasticities of demand compare to taxes inmarkets with smaller elasticities of supply.ANS: F DIF: 2 REF: 8-3 NAT: AnalyticLOC: Supply and demand TOP: Laffer curve MSC: Definitional45. The more elastic are supply and demand in a market, the greater are the distortions caused by a tax on thatmarket, and the more likely it is that a tax cut in that market will raise tax revenue.ANS: T DIF: 3 REF: 8-3 NAT: AnalyticLOC: Elasticity TOP: Elasticity | Deadweight loss MSC: Applicative46. When the government imposes taxes on buyers and sellers of a good, society loses some of the benefits ofmarket efficiency.ANS: T DIF: 1 REF: 8-4 NAT: AnalyticLOC: Supply and demand TOP: Efficiency MSC: InterpretiveChapter 8 /Application: the Costs of Taxation 533SHORT ANSWER 1.Suppose the government levies a tax of the vertical distance from point A to point B. Using the graph shown,determine the value of each of the following: a. equilibrium price before the tax b. consumer surplus before the tax c. producer surplus before the tax d. total surplus before the tax e. consumer surplus after the tax f. producer surplus after the taxg. total tax revenue to the governmenth. total surplus (consumer surplus+producer surplus+tax revenue) after the tax i. deadweight loss1002003004005006007008009001000246810121416182022ANS:a. $10b. $3,600c. $2,400d. $6,000e. $900f. $600g. $3,000h. $4,500i.$1,500DIF: 3REF: 8-1NAT: AnalyticLOC: Supply and demandTOP: Welfare MSC: Applicative2.John has been in the habit of mowing Willa's lawn each week for $20. John's opportunity cost is $15, and Willa would be willing to pay $25 to have her lawn mowed. What is the maximum tax the government can impose on lawn mowing without discouraging John and Willa from continuing their mutually beneficial arrangement?ANS:If the tax is less than $10, there will exist a price at which both John and Willa will still benefit from thelawn-mowing arrangement. If the tax is $10, a price can be set which will leave John and Willa neither better off nor worse off from the lawn-mowing arrangement. If the tax is greater than $10, all possible prices will leave at least one of the parties worse off from the lawn-mowing arrangement.DIF: 2REF: 8-1NAT: AnalyticLOC: Supply and demandTOP: Efficiency MSC: Applicative534 Chapter 8 /Application: the Costs of Taxation 3.Use the following graph shown to fill in the table that follows.DemandSupplyQ1Q2P1P2P3ABDFC GP4QuantityPriceDIF: 2REF: 8-1NAT: AnalyticLOC: Supply and demandTOP: Welfare MSC: Applicative4.Suppose that instead of a supply-demand diagram, you are given the following information:Q s = 100 + 3P Q d = 400 - 2PFrom this information compute equilibrium price and quantity. Now suppose that a tax is placed on buyers so that Q d = 400 - (2P + T ).If T = 15, solve for the new equilibrium price and quantity. (Note: P is the price received by sellers and P + T is the price paid by buyers.) Compare these answers for equilibrium price and quantity with your first answers. What does this show you?ANS:Prior to the tax, the equilibrium price would be $60 and the equilibrium quantity would be 280. After the tax is imposed, P , the price received by sellers would be $57. The price paid by buyers would be $72. The quantity sold would be 271. The new answer shows three obvious facts. First, buyers pay more with a tax. Second, sellers receive less with a tax. Third, the size of the market shrinks when a tax is imposed on a product.DIF: 3 REF: 8-1NAT: AnalyticLOC: Supply and demandTOP: Taxes MSC: AnalyticalChapter 8 /Application: the Costs of Taxation 535 5. Using demand and supply diagrams, show the difference in deadweight loss between (a) a market withinelastic demand and supply and (b) a market with elastic demand and supply.ANS:DIF: 2 REF: 8-2 NAT: Analytic LOC: ElasticityTOP: Deadweight loss | Elasticity MSC: Applicative536 Chapter 8 /Application: the Costs of Taxation6. Illustrate on three demand-and-supply graphs how the size of a tax (small, medium and large) can alter totalrevenue and deadweight loss.ANS:DIF: 2 REF: 8-3 NAT: Analytic LOC: Supply and demandTOP: Deadweight loss MSC: ApplicativeSec00 - Application: The Costs of TaxationMULTIPLE CHOICE1. In 1776, the American Revolution was sparked by anger overa.the extravagant lifestyle of British royalty.b.the crimes of British soldiers stationed in the American colonies.c.British taxes imposed on the American colonies.d.the failure of the British to protect American colonists from attack by hostile Native Americans. ANS: C DIF: 1 REF: 8-0NAT: Analytic LOC: Supply and demand TOP: TaxesMSC: DefinitionalChapter 8 /Application: the Costs of Taxation 5372. Anger over British taxes played a significant role in bringing about thea.election of John Adams as the second American president.b.American Revolution.c.War of 1812.d.“no new taxes” clause in the U.S. Constitution.ANS: B DIF: 1 REF: 8-0NAT: Analytic LOC: Supply and demand TOP: TaxesMSC: Definitional3. Who once said that taxes are the price we pay for a civilized society?a.Aristotleb.George Washingtonc.Oliver Wendell Holmes, Jr.d.Ronald ReaganANS: C DIF: 1 REF: 8-0NAT: Analytic LOC: Supply and demand TOP: TaxesMSC: Definitional4. Who once said that taxes are the price we pay for a civilized society?ton Friedmanb.Theodore Rooseveltc.Arthur Lafferd.Oliver Wendell Holmes, Jr.ANS: D DIF: 1 REF: 8-0NAT: Analytic LOC: Supply and demand TOP: TaxesMSC: Definitional5. To fully understand how taxes affect economic well-being, we musta.assume that economic well-being is not affected if all tax revenue is spent on goods and services forthe people who are being taxed.pare the taxes raised in the United States with those raised in other countries, especially France.pare the reduced welfare of buyers and sellers to the amount of revenue the government raises.d.take into account the fact that almost all taxes reduce the welfare of buyers, increase the welfare ofsellers, and raise revenue for the government.ANS: C DIF: 2 REF: 8-0NAT: Analytic LOC: Supply and demand TOP: Taxes | Economic welfare MSC: Interpretive6. To fully understand how taxes affect economic well-being, we must compare thea.benefit to buyers with the loss to sellers.b.price paid by buyers to the price received by sellers.c.profits earned by firms to the losses incurred by consumers.d.decrease in total surplus to the increase in revenue raised by the government.ANS: D DIF: 2 REF: 8-0NAT: Analytic LOC: Supply and demand TOP: Taxes | Economic welfare MSC: Interpretive7. To fully understand how taxes affect economic well-being, we must compare thea.consumer surplus to the producer surplus.b.price paid by buyers to the price received by sellers.c.reduced welfare of buyers and sellers to the revenue raised by the government.d.consumer surplus to the deadweight loss.ANS: C DIF: 2 REF: 8-0NAT: Analytic LOC: Supply and demand TOP: Taxes | Economic welfare MSC: Interpretive538 Chapter 8 /Application: the Costs of TaxationSec01 - Application: The Costs of Taxation - The Deadweight Loss of Taxation MULTIPLE CHOICE1. When a tax is levied on a good, the buyers and sellers of the good share the burden,a.provided the tax is levied on the sellers.b.provided the tax is levied on the buyers.c.provided a portion of the tax is levied on the buyers, with the remaining portion levied on thesellers.d.regardless of how the tax is levied.ANS: D DIF: 2 REF: 8-1NAT: Analytic LOC: Supply and demand TOP: Tax burdenMSC: Interpretive2. A tax on a gooda.raises the price that buyers effectively pay and raises the price that sellers effectively receive.b.raises the price that buyers effectively pay and lowers the price that sellers effectively receive.c.lowers the price that buyers effectively pay and raises the price that sellers effectively receive.d.lowers the price that buyers effectively pay and lowers the price that sellers effectively receive. ANS: B DIF: 2 REF: 8-1NAT: Analytic LOC: Supply and demand TOP: TaxesMSC: Interpretive3. When a tax is placed on a product, the price paid by buyersa.rises, and the price received by sellers rises.b.rises, and the price received by sellers falls.c.falls, and the price received by sellers rises.d.falls, and the price received by sellers falls.ANS: B DIF: 2 REF: 8-1NAT: Analytic LOC: Supply and demand TOP: TaxesMSC: Interpretive4. A tax affectsa.buyers only.b.sellers only.c.buyers and sellers only.d.buyers, sellers, and the government.ANS: D DIF: 2 REF: 8-1NAT: Analytic LOC: Supply and demand TOP: Tax incidenceMSC: Interpretive5. The government’s benefit from a tax can be measured bya.consumer surplus.b.producer surplus.c.tax revenue.d.All of the above are correct.ANS: C DIF: 2 REF: 8-1NAT: Analytic LOC: Supply and demand TOP: Tax revenueMSC: Interpretive6. What happens to the total surplus in a market when the government imposes a tax?a.Total surplus increases by the amount of the tax.b.Total surplus increases but by less than the amount of the tax.c.Total surplus decreases.d.Total surplus is unaffected by the tax.ANS: C DIF: 2 REF: 8-1NAT: Analytic LOC: Supply and demand TOP: Total surplusMSC: Applicative7. When a good is taxed,a.both buyers and sellers of the good are made worse off.b.only buyers are made worse off, because they ultimately bear the burden of the tax.c.only sellers are made worse off, because they ultimately bear the burden of the tax.d.neither buyers nor sellers are made worse off, since tax revenue is used to provide goods andservices that would otherwise not be provided in a market economy.ANS: A DIF: 2 REF: 8-1NAT: Analytic LOC: Supply and demand TOP: Tax burdenMSC: Interpretive8. To measure the gains and losses from a tax on a good, economists use the tools ofa.macroeconomics.b.welfare economics.c.international-trade theory.d.circular-flow analysis.ANS: B DIF: 1 REF: 8-1NAT: Analytic LOC: Supply and demand TOP: WelfareMSC: Interpretive9. When a tax is imposed on a good, thea.supply curve for the good always shifts.b.demand curve for the good always shifts.c.amount of the good that buyers are willing to buy at each price always remains unchanged.d.equilibrium quantity of the good always decreases.ANS: D DIF: 2 REF: 8-1NAT: Analytic LOC: Supply and demand TOP: TaxesMSC: Interpretive10. A tax levied on the sellers of a good shifts thea.supply curve upward (or to the left).b.supply curve downward (or to the right).c.demand curve upward (or to the right).d.demand curve downward (or to the left).ANS: A DIF: 2 REF: 8-1NAT: Analytic LOC: Supply and demand TOP: TaxesMSC: Interpretive11. A tax levied on the buyers of a good shifts thea.supply curve upward (or to the left).b.supply curve downward (or to the right).c.demand curve downward (or to the left).d.demand curve upward (or to the right).ANS: C DIF: 2 REF: 8-1NAT: Analytic LOC: Supply and demand TOP: TaxesMSC: Interpretive12. If a tax shifts the supply curve upward (or to the left), we can infer that the tax was levied ona.buyers of the good.b.sellers of the good.c.both buyers and sellers of the good.d.We cannot infer anything because the shift described is not consistent with a tax.ANS: B DIF: 2 REF: 8-1NAT: Analytic LOC: Supply and demand TOP: TaxesMSC: Interpretive13. If a tax shifts the supply curve downward (or to the right), we can infer that the tax was levied ona.buyers of the good.b.sellers of the good.c.both buyers and sellers of the good.d.We cannot infer anything because the shift described is not consistent with a tax.ANS: D DIF: 2 REF: 8-1NAT: Analytic LOC: Supply and demand TOP: TaxesMSC: Interpretive14. If a tax shifts the demand curve downward (or to the left), we can infer that the tax was levied ona.buyers of the good.b.sellers of the good.c.both buyers and sellers of the good.d.We cannot infer anything because the shift described is not consistent with a tax.ANS: A DIF: 2 REF: 8-1NAT: Analytic LOC: Supply and demand TOP: TaxesMSC: Interpretive15. If a tax shifts the demand curve upward (or to the right), we can infer that the tax was levied ona.buyers of the good.b.sellers of the good.c.both buyers and sellers of the good.d.We cannot infer anything because the shift described is not consistent with a tax.ANS: D DIF: 2 REF: 8-1NAT: Analytic LOC: Supply and demand TOP: TaxesMSC: Interpretive16. When a tax is imposed on the buyers of a good, the demand curve shiftsa.downward by the amount of the tax.b.upward by the amount of the tax.c.downward by less than the amount of the tax.d.upward by more than the amount of the tax.ANS: A DIF: 2 REF: 8-1NAT: Analytic LOC: Supply and demand TOP: TaxesMSC: Interpretive17. When a tax is imposed on the sellers of a good, thea.demand curve shifts downward by less than the amount of the tax.b.demand curve shifts downward by the amount of the tax.c.supply curve shifts upward by less than the amount of the tax.d.supply curve shifts upward by the amount of the tax.ANS: D DIF: 2 REF: 8-1NAT: Analytic LOC: Supply and demand TOP: TaxesMSC: Interpretive18. A tax placed on buyers of tires shifts thea.demand curve for tires downward, decreasing the price received by sellers of tires and causing thequantity of tires to increase.b.demand curve for tires downward, decreasing the price received by sellers of tires and causing thequantity of tires to decrease.c.supply curve for tires upward, decreasing the effective price paid by buyers of tires and causing thequantity of tires to increase.d.supply curve for tires upward, increasing the effective price paid by buyers of tires and causing thequantity of tires to decrease.ANS: B DIF: 3 REF: 8-1NAT: Analytic LOC: Supply and demand TOP: TaxesMSC: Applicative19. Suppose a tax is imposed on the buyers of fast-food French fries. The burden of the tax willa.fall entirely on the buyers of fast-food French fries.b.fall entirely on the sellers of fast-food French fries.c.be shared equally by the buyers and sellers of fast-food French fries.d.be shared by the buyers and sellers of fast-food French fries but not necessarily equally. ANS: D DIF: 2 REF: 8-1NAT: Analytic LOC: Supply and demand TOP: Tax incidenceMSC: Interpretive20. It does not matter whether a tax is levied on the buyers or the sellers of a good becausea.sellers always bear the full burden of the tax.b.buyers always bear the full burden of the tax.c.buyers and sellers will share the burden of the tax.d.None of the above is correct; the incidence of the tax does depend on whether the buyers or thesellers are required to pay the tax.ANS: C DIF: 2 REF: 8-1NAT: Analytic LOC: Supply and demand TOP: Tax incidenceMSC: Interpretive21. When alcohol is taxed and sellers of alcohol are required to pay the tax to the government,a.the quantity of alcohol bought and sold in the market is reduced.b.the price paid by buyers of alcohol decreases.c.the demand for alcohol decreases.d.there is a movement downward and to the right along the demand curve for alcohol.ANS: A DIF: 2 REF: 8-1NAT: Analytic LOC: Supply and demand TOP: Tax incidenceMSC: Interpretive22. One result of a tax, regardless of whether the tax is placed on the buyers or the sellers, is that thea.size of the market is unchanged.b.price the seller effectively receives is higher.c.supply curve for the good shifts upward by the amount of the tax.d.tax reduces the welfare of both buyers and sellers.ANS: D DIF: 2 REF: 8-1NAT: Analytic LOC: Supply and demand TOP: Taxes | Welfare MSC: Interpretive23. When a tax is placed on the buyers of a product, a result is that buyers effectively paya.less than before the tax, and sellers effectively receive less than before the tax.b.less than before the tax, and sellers effectively receive more than before the tax.c.more than before the tax, and sellers effectively receive less than before the tax.d.more than before the tax, and sellers effectively receive more than before the tax.ANS: C DIF: 2 REF: 8-1NAT: Analytic LOC: Supply and demand TOP: TaxesMSC: Interpretive24. When a tax is levied on a good,a.neither buyers nor sellers are made worse off.b.only sellers are made worse off.c.only buyers are made worse off.d.both buyers and sellers are made worse off.ANS: D DIF: 2 REF: 8-1NAT: Analytic LOC: Supply and demand TOP: Taxes | Welfare MSC: Interpretive25. When a tax is levied on the buyers of a good, thea.supply curve shifts upward by the amount of the tax.b.quantity supplied increases for all conceivable prices of the good.c.buyers of the good will send tax payments to the government.d.demand curve shifts to the right by the horizontal distance of the tax.ANS: C DIF: 2 REF: 8-1NAT: Analytic LOC: Supply and demand TOP: TaxesMSC: Definitional26. When a tax is levied on the sellers of a good, thea.supply curve shifts upward by the amount of the tax.b.quantity demanded decreases for all conceivable prices of the good.c.quantity supplied increases for all conceivable prices of the good.d.None of the above is correct.ANS: A DIF: 2 REF: 8-1NAT: Analytic LOC: Supply and demand TOP: TaxesMSC: Interpretive27. A $2.00 tax per gallon of paint placed on the sellers of paint will shift the supply curvea.downward by exactly $2.00.b.downward by less than $2.00.c.upward by exactly $2.00.d.upward by less than $2.00.ANS: C DIF: 2 REF: 8-1NAT: Analytic LOC: Supply and demand TOP: Tax incidenceMSC: Interpretive28. When a tax on a good is enacted,a.buyers and sellers share the burden of the tax regardless of whether the tax is levied on buyers or onsellers.b.buyers always bear the full burden of the tax.c.sellers always bear the full burden of the tax.d.sellers bear the full burden of the tax if the tax is levied on them; buyers bear the full burden of thetax if the tax is levied on them.ANS: A DIF: 2 REF: 8-1NAT: Analytic LOC: Supply and demand TOP: Tax incidenceMSC: Interpretive29. A tax placed on a gooda.causes the effective price to sellers to increase.b.affects the welfare of buyers of the good but not the welfare of sellers.c.causes the equilibrium quantity of the good to decrease.d.creates a burden that is usually borne entirely by the sellers of the good.ANS: C DIF: 2 REF: 8-1NAT: Analytic LOC: Supply and demand TOP: Tax incidenceMSC: Interpretive30. When a tax is levied on buyers of a good,ernment collects too little revenue to justify the tax if the equilibrium quantity of the gooddecreases as a result of the tax.b.there is an increase in the quantity of the good supplied.c. a wedge is placed between the price buyers pay and the price sellers effectively receive.d.the effective price to buyers decreases because the demand curve shifts leftward.ANS: C DIF: 2 REF: 8-1NAT: Analytic LOC: Supply and demand TOP: TaxesMSC: Applicative。

国际经济学模拟习题（3）一、True or False （10*1’=10’）1. Trade is a zero-sum activity; if one country gains, theother must lose.2. A nation maximizes satisfaction by reaching the highestpossible indifference curve, and in the absence of trade will produce where its production possibilitiesschedule is tangent to an indifference curve.3. The factor endowments model predicts thatinternational trade will tend to equalize the prices oftrade-able goods among nations, but to increase thewage gap between capital-abundant and labor-abundant nations.4. A tax of 10 percent on imports of shoes would be anexample of a specific tariff.5. An import quota will not raise the domestic price ofthe product as would a tariff, because it is not a tax onimports.6. In balance-of-payments account, a transaction resultingin receipt of a payment is recorded as a credit,whereas a transaction resulting in a payment to othernations is recorded as a debit.7. Because they do not include an exchange of goods orservices, unilateral transfers do not appear on anation's balance of payments account.8. David Hume was one of the first economists to provideanalytical support for mercantilist trade policies.9. A nation would be most likely to find its trade balanceimproving after a currency depreciation if that nation’sdemand for imports and foreign demand for its exportswas very inelastic.10. A nation with neither a balance of payments surplus nora balance of payments deficit is said to be in internalbalance.二、choices（15*3’=45’）1. The law of comparative advantagea). was ratified by the World Trade Organizationb). explains how all countries can benefit when each specializes in producing items in which it has the greatest relative efficiencyc). explains how only the most efficient nations can benefit from traded). is used to evaluate a country’s military strength2. The theory of absolute advantage was developed bya. the Mercantilistsb. David Humec. Adam Smithd. David Ricardo3. David Ricardo developed the principle of comparative advantage showing thata. a nation must be the least-cost producer of a good in order to export that itemb. no nation could have an absolute advantage in all goodsc. in a two-country example, only one nation can have a comparative advantaged. even a nation that has lower productivity in all goods can benefit by exporting the item in which it is relatively less inefficient4. An indifference curvea. shows that most people really are indifferent about international tradeb. shows the demand preferences of consumersc. reflects the relative costs of production within a nationd. indicates how much labor a country has5. To maximize its satisfaction, a nation will ensure that its terms-of-trade linea. is tangent to its production possibilities frontier at one point (production point) and also to the highest attainable indifference curve at another point (consumption point)b. is tangent to its production possibilities frontier and intersects an indifference curvec. intersects its production possibilities frontier and is tangent to an indifference curved. intersects its production possibilities frontier at one point and an indifference curve at another point6. Factor-price equalization predicts that with international tradea. the price of a nation’s abundant factor will rise and that of its scarce factor will fallb. the price of a nation’s abundant factor will fall and that of its scarce factor will risec. the prices of a nation’s abundant and scarce factors both will rised. the prices of a nation’s abundant and scarce factors both will fall7. The effective rate of protectiona. distinguishes between tariffs that are effective and those that are ineffectiveb. is the minimum level at which a tariff becomes effectiv e in limiting importsc. shows the increase in value-added for domestic production that a particular tariff structure makes possible, in percentage termsd. shows how effective a tariff is in raising revenue8. The institutional framework developed in 1947 to promote trade liberalization is known asa. the GATTb. the WTOc. the IMFd. The World Bank9. Developing nationsa. have very limited involvement in international tradeb. trade mostly with each otherc. rely heavily on exports of primary products to industrial nationsd. rely heavily on exports of manufactured products10. A customs union is unique in that ita. has no tariffs on trade among member nationsb. has no tariffs on trade among member nations and a common set of tariffs on imports from non-membersc. has no tariffs on trade among member nations, a common set of tariffs on imports from non-members, and free mobility of factors of production such as labor and capital among membersd. allows unrestricted labor immigration from no n-member nations11. A nation's balance of payments statementa. is a record of that nation's assets abroad and its liabilities to those from other nationsb. is an accounting adjustment process ensuring that a nation's exports will be equal to its importsc. does not include transactions of foreign citizens or companies living or operating within that nationd. is a record of the economic transactions between residents of that nation and the rest of the world, usually for a period of one year.12. Since balance-of-payments accounting is a double-entryaccounting system, an export of U.S. wheat to Mexico paid for by a deposit to the U.S. exporters account in a Mexican bank would be recorded on the U.S. balance of payments as a. a credit for merchandise exports and a credit to short-term financial flowsb. a credit for merchandise exports and a debit to short-termfinancial flows.c. a credit for merchandise exports and a debit to unilateral transfersd. a credit for merchandise exports and a debit to official settlements13. The foreign-exchange marketa. is located in New Yorkb. is a market in Chicago for the international trading of commodities such as wheat or copper.c. is a mechanism for individuals and institutions to exchange one national or regional currency or debt instrument for those of other nations or regions.d. is open from 9:00 a.m. to 3:00 p.m. New York time, Monday through Friday.14. Market fundamentals that might be expected to influenceexchange rate movements include all of the following factors excepta. differences in real income growth rates between countriesb. differences in real interest rates between countriesc. speculative opinion about future exchange ratesd. changes in perceived profitability of economic investments between two countries15. If inflation is higher in Mexico than in the United States, the law of one price would predict thata. trade between Mexico and the United States would declineb. the dollar price of autos purchased in Mexico would behigher than the dollar price of comparable autos purchased in the United Statesc. the peso would appreciate relative to the dollar by anamount equal in percentage terms to the difference between the two inflation ratesd. the peso would depreciate relative to the dollar by anamount equal in percentage terms to the difference between the two inflation rates三、Questions（45’, answer these questions in Chinese）1. Assume that labor is the only factor used in production, and that the costs of producing butter and cloth are given by the table below.(8’)(1) Express the price of butter relative to the price of cloth in terms of labor content for Home and Foreign in t he absence of trade.(2) What do these relative prices reveal about each country’s comparative advantage?(3) What do these relative prices suggest about the world price of butter relative to cloth that will exist once these countries trade with each other?(4) If the world price stabilizes at 1 with trade, what are the gains by the Home country achieved through trade with the Foreign country?2. Explain the immiserizing growth and list the case for immiserizing growth to be occur. (8’)3. Explain the exch ange rate overshooting theory (8’)4. Suppose that the nominal interest rate on 3-month Treasurybills is 8 percent in the United States and 6 percent in the United Kingdom, and the rate of inflation is 10 percent in the United States and 4 percent in the United Kingdom.(9’)(1) What is the real interest rate in each nation?(2) In which direction would international investment flow in response to these real interest rates?(3) What impact would these investment flows have on the dollar’s exchange value?5. What effects does labor migration have on the country ofimmigration? The country of emigration? The world as a whole?(12’)国际经济学模拟习题（3）参考答案一、判断题（每题1分，共10分）╳√ ╳╳╳√ ╳╳╳╳二、选择题（每题3分，共45分）bcdba acacb dbccd三、简答题（共45分）1、(1) 封闭条件下，本国可以用一半的生产一单位布的劳动时间生产一单位黄油。

ContentsChapter 3 Labor Productivity and Comparative Advantage: The Ricardian Model 2 Chapter 4 Specific Factors and Income Distribution 13 Chapter 5 Resources and Trade: The Heckscher-Ohlin Model 22 Chapter 6 The Standard Trade Model 31 Chapter 7 Economies of Scale, imperfect Competition, and International Trade 41 Chapter 8 International Factor Movements 50 Chapter 9 The Instruments of Trade Policy 60Chapter 3: Labor Productivity and Comparative Advantage - The Ricardian ModelMultiple Choice Questions1.Countries trade with each other because they are _______ and because of______.A. different, costsB. similar, scale economiesC. different, scale economiesD. similar, costsE.None of the above.2.Trade between two countries can benefit both countries ifA.each country exports that good in which it has a comparative advantage.B.each country enjoys superior terms of trade.C.each country has a more elastic demand for the imported goods.D.each country has a more elastic supply for the supplied goods.E.Both C and D.3.The Ricardian theory of comparative advantage states that a country has acomparative advantage in widgets ifA.output per worker of widgets is higher in that country.B.that country's exchange rate is low.C.wage rates in that country are high.D.the output per worker of widgets as compared to the output of some otherproduct is higher in that country.E.Both B and C.4.In order to know whether a country has a comparative advantage in theproduction of one particular product we need information on at least ____unitlabor requirementsA.oneB.twoC.threeD.fourE.five5. A country engaging in trade according to the principles of comparativeadvantage gains from trade because itA.is producing exports indirectly more efficiently than it could alternatively.B.is producing imports indirectly more efficiently than it coulddomestically.D.is producing imports indirectly using fewer labor units.E.None of the above.6.Given the following information:Unit Labor RequirementsCloth WidgetsHome 10 20Foreign 60 30A.Neither country has a comparative advantage.B.Home has a comparative advantage in cloth.C.Foreign has a comparative advantage in cloth.D.Home has a comparative advantage in widgets.E.Home has a comparative advantage in both products.7.If it is ascertained that Foreign uses prison-slave labor to produce its exports,then home shouldA.export cloth.B.export widgets.C.export both and import nothing.D.export and import nothing.E.All of the above.8.If the Home economy suffered a meltdown, and the Unit Labor Requirements ineach of the products quadrupled (that is, doubled to 30 for cloth and 60 forwidgets) then home shouldA.export cloth.B.export widgets.C.export both and import nothing.D.export and import nothing.E.All of the above.9.If wages were to double in Home, then Home should:A.export cloth.B.export widgets.C.export both and import nothing.D.export and import nothing.E.All of the above.10.If the world equilibrium price of widgets were 4 Cloths, thenA.both countries could benefit from trade with each other.B.neither country could benefit from trade with each other.C.each country will want to export the good in which it enjoys comparativeadvantage.D.neither country will want to export the good in which it enjoyscomparative advantage.E.both countries will want to specialize in cloth.11.Given the following information:Number of Units Produced by one Unit of LaborCloth WidgetsHome 10 20Foreign 60 30A.Neither country has a comparative advantage.B.Home has a comparative advantage in cloth.C.Foreign has a comparative advantage in cloth.D.Foreign has a comparative advantage in widgets.E.Home has a comparative advantage in both products.12.The opportunity cost of cloth in terms of widgets in Foreign is if it is ascertainedthat Foreign uses prison-slave labor to produce its exports, then home shouldA.export cloth.B.export widgets.C.export both and import nothing.D.export and import nothing.E.All of the above.13.If wages were to double in Home ,then Home shouldA.export cloth.B.export widgets.C.export both and import nothing.D.export and import nothing.E.All of the above.14.If the world equilibrium price of widgets were 4 Cloths, thenA.both countries could benefit from trade with each other.B.neither country could benefit from trade with each other.C.each country will want to export the good in which it enjoys comparativeadvantage.D.neither country will want to export the good in which it enjoyscomparative advantage.E.both countries will want to specialize in cloth.15.If the world equilibrium price of widgets were 40 cloths, thenA.both countries could benefit from trade with each other.B.neither country could benefit from trade with each other.C.each country will want to export the good in which it enjoys comparativeadvantage.D.neither country will want to export the good in which it enjoyscomparative advantage.E.both countries will want to specialize in cloth.16. In a two product two country world, international trade can lead to increases inA.consumer welfare only if output of both products is increased.B.output of both products and consumer welfare in both countries.C.total production of both products but not consumer welfare in bothcountriesD.consumer welfare in both countries but not total production of bothproducts.E.None of the above.17.As a result of trade, specialization in the Ricardian model tends to beplete with constant costs and with increasing costs.plete with constant costs and incomplete with increasing costs.C.incomplete with constant costs and complete with increasing costs.D.incomplete with constant costs and incomplete with increasing costs.E.None of the above.18. A nation engaging in trade according to the Ricardian model will find itsconsumption bundleA.inside its production possibilities frontier.B.on its production possibilities frontier.C.outside its production possibilities frontier.D.inside its trade-partner's production possibilities frontier.E.on its trade-partner's production possibilities frontier.19.In the Ricardian model, if a country's trade is restricted, this will cause all exceptwhich?A.Limit specialization and the division of labor.B.Reduce the volume of trade and the gains from tradeC.Cause nations to produce inside their production possibilities curvesD.May result in a country producing some of the product of its comparativedisadvantageE.None of the above.20.If a very small country trades with a very large country according to theRicardian model, thenA.the small country will suffer a decrease in economic welfare.B.the large country will suffer a decrease in economic welfare.C.the small country will enjoy gains from trade.E.None of the above.21.If the world terms of trade for a country are somewhere between the domesticcost ratio of H and that of F, thenA.country H but not country F will gain from trade.B.country H and country F will both gain from trade.C.neither country H nor F will gain from trade.D.only the country whose government subsidizes its exports will gain.E.None of the above.22.If the world terms of trade equal those of country F, thenA.country H but not country F will gain from trade.B.country H and country F will both gain from trade.C.neither country H nor F will gain from trade.D.only the country whose government subsidizes its exports will gain.E.None of the above.23. If the world terms of trade equal those of country ,F thenA.country H but not country F will gain from trade.B.country H and country F will both gain from trade.C.neither country H nor F will gain from trade.D.only the country whose government subsidizes its exports will gain.E.None of the above.24.If a production possibilities frontier is bowed out (concave to the origin), thenproduction occurs under conditions ofA.constant opportunity costs.B.increasing opportunity costs.C.decreasing opportunity costs.D.infinite opportunity costs.E.None of the above.25.If two countries have identical production possibility frontiers, then tradebetween them is not likely ifA.their supply curves are identical.B.their cost functions are identical.C.their demand conditions identical.D.their incomes are identical.E.None of the above.26.If two countries have identical production possibility frontiers, then tradebetween them is not likely ifA.their supply curves are identical.B.their cost functions are identical.D.their incomes are identical.E.None of the above.27.The earliest statement of the principle of comparative advantage is associatedwithA.David Hume.B.David Ricardo.C.Adam Smith.D.Eli Heckscher.E.Bertil Ohlin.28. If one country's wage level is very high relative to the other's (the relative wageexceeding the relative productivity ratios), then if they both use the samecurrencyA.neither country has a comparative advantage.B.only the low wage country has a comparative advantage.C.only the high wage country has a comparative advantage.D.consumers will still find trade worth while from their perspective.E. None of the above.29.If one country's wage level is very high relative to the other's (the relative wageexceeding the relative productivity ratios), thenA.it is not possible that producers in each will find export marketsprofitable.B.it is not possible that consumers in both countries will enhance theirrespective welfares through imports.C.it is not possible that both countries will find gains from trade.D.it is possible that both will enjoy the conventional gains from trade.E.None of the above.30.The Ricardian model is based on all of the following exceptA.only two nations and two products.B. no diminishing returns.bor is the only factor of production.D.product quality varies among nations.E.None of the above.31. Ricardo's original theory of comparative advantage seemed of limited real-world value because it was founded on thebor theory of value.B. capital theory of value.C. land theory of value.D. entrepreneur theory of value.E.None of the above.32.According to Ricardo, a country will have a comparative advantage in theproduct in which itsbor productivity is relatively low.bor productivity is relatively high.bor mobility is relatively low.bor mobility is relatively high.E.None of the above.33.In a two-country, two-product world, the statement "Germany enjoys acomparative advantage over France in autos relative to ships" is equivalent toA.France having a comparative advantage over Germany in ships.B.France having a comparative disadvantage compared to Germany inautos and ships.C.Germany having a comparative advantage over France in autos and ships.D.France having no comparative advantage over Germany.E.None of the above.34.Assume that labor is the only factor of production and that wages in the UnitedStates equal $20 per hour while wages in Japan are $10 per hour. Productioncosts would be lower in the United States as compared to Japan ifA.U.S. labor productivity equaled 40 units per hour and Japan's 15 units perhour.B.U.S. productivity equaled 30 units per hour whereas Japan's was 20.C.U.S. labor productivity equaled 20 and Japan's 30.D.U.S. labor productivity equaled 15 and Japan's 25 units per hour.E.None of the above.35.If the United States’ production possibility frontier was flatter to the widget axis,whereas Germany's was flatter to the butter axis, we know thatA.the United States has no comparative advantageB.Germany has a comparative advantage in butter.C.the U.S. has a comparative advantage in butter.D.Not enough information is given.E.None of the above.36.Suppose the United States' production possibility frontier was flatter to thewidget axis, whereas Germany's was flatter to the butter axis. We now learn that the German mark is sharply depreciated against the U.S. dollar. We now knowthatA.the United States has no comparative advantageB.Germany has a comparative advantage in butter.C.the United States has a comparative advantage in butter.D.Not enough information is given.E.None of the above.37.Suppose the United States' production possibility frontier was flatter to thewidget axis, whereas Germany's was flatter to the butter axis. We now learn that the German wage doubles, but U.S. wages do not change at all. We now knowthatA.the United States has no comparative advantage.B.Germany has a comparative advantage in butter.C.the United States has a comparative advantage in butter.D.Not enough information is given.E.None of the above.Essay Questions1.Many countries in Sub-Saharan Africa have very low labor productivities inmany sectors, in manufacturing and agriculture. They often despair of eventrying to attempt to build their industries unless it is done in an autarkic context,behind protectionist walls because they do not believe they can compete withmore productive industries abroad. Discuss this issue in the context of theRicardian model of comparative advantage.2.In 1975, wage levels in South Korea were roughly 5% of those in the UnitedStates. It is obvious that if the United States had allowed Korean goods to befreely imported into the United States at that time, this would have causeddevastation to the standard of living in the United States.,because no producer in this country could possibly compete with such low wages. Discuss this assertion in the context of the Ricardian model of comparative advantage.3.The evidence cited in the chapter using the examples of the East Asia NewIndustrializing Countries suggests that as international productivities converge,so do international wage levels. Why do you suppose this happened for the East Asian NICs? In light of your answer, what do you think is likely to happen tothe relative wages (relative to those in the United States) of China in the coming decade? Explain your reasoning.4.When we examine the 2 Good 2 Country version of the Ricardian model ofcomparative advantage, we note that comparative advantage is totallydetermined by physical productivity ratios. Changes in wage rates in eithercountry cannot affect these physically determined comparative advantages, andhence cannot affect, which product will be exported by which country. However, when more than 2 goods are added to the model (still with 2 countries), changesin wage rates in one or the other country can in fact determine which good orgoods each of the countries will export. How can you explain this anomaly?5.An examination of the Ricardian model of comparative advantage yields theclear result that trade is (potentially) beneficial for each of the two tradingpartners since it allows for an expanded consumption choice for each. However, for the world as a whole the expansion of production of one product mustinvolve a decrease in the availability of the other, so that it is not clear that tradeis better for the world as a whole as compared to an initial situation of non-trade(but efficient production in each country). Are there in fact gains from trade forthe world as a whole? Explain.Quantitative/Graphing Problems1. Given the following information:Unit Labor RequirementsCloth WidgetsHome 100 200Foreign 60 30What is the opportunity cost of Cloth in terms of Widgets in Foreign?2. Given the following information:Unit Labor RequirementsCloth WidgetsHome 100 200Foreign 60 30If these two countries trade these two goods in the context of the Ricardianmodel of comparative advantage, then what is the lower limit of the worldequilibrium price of widgets?3. Given the following information:Unit Labor RequirementsCloth WidgetsHome 100 200Foreign 60 30If these two countries trade these two goods with each other in according to the Ricardian model of comparative advantage, what is the lower limit for the price of cloth?4. Given the following information:Units Produced by One Worker/HourCloth WidgetsHome 100 200Foreign 60 30What is the opportunity cost of cloth in terms of Wwdgets in Foreign?5. Given the following information:Units Produced by One Worker/HourCloth WidgetsHome 100 200Foreign 60 30If these two countries trade these two goods with each other in the following the Ricardian model of comparative advantage, then what is the lower limit for the world equilibrium price of cloth?1. Home has 1200 units of labor available. It can produce two goods, apples and bananas. The unit labor requirement in apple production is 3, while in banana production it is2.a. Graph Home's production possibility frontier.b. What is the opportunity cost of apples in terms of bananas?c. In the absence of trade, what would the price of apples in terms of bananas be? Why?2. Home is as described in problem 1. There is now also another country, Foreign, with a labor force of 800. Foreign's unit labor requirement in apple production is 5, while in banana production it is 1.a. Graph Foreign's production possibility frontier.b. Construct the world relative supply curve.3. Now suppose world relative demand takes the following form: Demand for apples / demand for bananas = price of bananas / price of applesa. Graph the relative demand curve along with the relative supply curve.b. What is the equilibrium relative price of apples?c. Describe the pattern of trade.d. Show that both Home and Foreign gain from trade.4. Suppose that instead of 1200 workers, Home had 2400. Find the equilibrium relative price. What can you say about the efficiency of world production and the division of the gains from trade between Home and Foreign in this case?5. Suppose that Home has 2400 workers, but they are only half as productive in both industries as we have been assuming. Construct the world relative supply curve and determine the equilibrium relative price. How do the gains from trade compare with those in the case described in problem 4?6. “ Korean workers earn only $2.50 an hour; if we allow Korea to export as much as it likes to the United States, our workers will be forced down to the same level. You can’t import a $5 shirt without importing the $2.50 wage that goes with it.” Discuss.7. 请对下列观点加以评价：（1）只有当一个国家的生产率达到足以在国际竞争中立足的水平时，它才能从自由贸易中获益；（2）如果来自外国的竞争是建立在低工资的基础上，那么这种竞争是不公平的，而且会损害其他参与竞争的国家；（3）如果一个国家的工人比其他国家工人的工资低，那么贸易就会使这个国家受到剥削并使福利恶化。

国际经济学选择题题库（有答案）Multiple-Choice Questions Ch.21.The Mercantilists did not advocate: aa. free tradeb. stimulating the nation's exportsc. restricting the nations' importsd. the accumulation of gold by the nation2.According to Adam Smith, international trade was based on: aa. absolute advantageb. comparative advantagec. both absolute and comparative advantaged. neither absolute nor comparative advantage3.What proportion of international trade is based on absolute advantage? c.a. Allb. mostc. somed. none4.The commodity in which the nation has the smallest absolute disadvantage is the commodity of its: da. absolute disadvantageb. absolute advantagec. comparative disadvantaged. comparative advantage5.If in a two-nation (A and B), two-commodity (X and Y) world, it is established that nation dA has a comparative advantage in commodity X, then nationB 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 Y6.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): ca. nation A has a comparative disadvantage in commodity Xb. nation B has a comparative disadvantage in commodity Yc. nation A has a comparative advantage in commodity Xd. nation A has a comparative advantage in neither commodity7. With reference to the statement in Question 6: da. Px/Py=1 in nation Ab. Px/Py=3 in nation Bc. Py/Px=1/3 in nation Bd. all of the above8. With reference to the statement in Question 6, if 3X is exchanged for 3Y: .ba. nation A gains 2Xb. nation B gains 6Yc. nation A gains 3Yd. nation B gains 3Y9.With reference to the statement of Question 6, the range of mutually beneficial tradebetween nation A and B is: .ca. 3Y < 3X < 5Yb. 5Y < 3X < 9Yc. 3Y < 3X < 9Yd. 1Y < 3X < 3Y10. If domestically 3X=3Y in nation A, while 1X=1Y domestically in nation B:d..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 above11. Ricardo explained the law of comparative advantage on the basis of: a.a. the labor theory of valueb. the opportunity cost theoryc. the law of diminishing returnsd. all of the above12. Which of the following statements is true? d.a. The combined demand for each commodity by the two nations is negatively slopedb. the combined supply for each commodity by the two nations is rising stepwisec.the equilibrium relative commodity price for each commodity with trade is given bytheintersection of the demand and supply of each commodity by the two nationsd. all of the above13. A difference in relative commodity prices between two nations can be based upon adifference in: d.a. factor endowmentsb. technologyc. tastesd. all of the above14. In the trade between a small and a large nation:ba. 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 say15. The Ricardian trade model has been empirically a.a. verifiedb. rejectedc. not testedd. tested but the results were inconclusiveMultiple-Choice Questions Ch.31. A production frontier that is concave from the origin indicates that the nation incursincreasing opportunity costs in the production of:a. commodity X onlyb. commodity Y onlyc. both commoditiesd. neither commodity2. 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 Xb. the opportunity cost of Xc. the absolute slope of the production frontier at the point of productiond. all of the above3. Which of the following is not a reason for increasing opportunity costs:a. technology differs among nationsb. factors of production are not homogeneousc. factors of production are not used in the same fixed proportion in the productionof allcommoditiesd. for the nation to produce more of a commodity, it must use resources that are less andless suited in the production of the commodity4. Community indifference curves:a. are negatively slopedb. are convex to the originc. should not crossd. all of the above5. 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 onthesame indifference curveb. amount of Y that a nation must give up for one extra unit of X and still remain on thesame indifference curvec.amount of X that a nation must give up for one extra unit of Y to reach a higherindifference curved.amount of Y that a nation must give up for one extra unit of X to reach a higherindifference curve6. Which of the following statements is true with respect tothe MRS of X for Y?a. It is given by the absolute slope of the indifference curveb. declines as the nation moves down an indifference curvec. rises as the nation moves up an indifference curved. all of the above7. Which of the following statements about community indifference curves is true?a. They are entirely unrelated to individuals' community indifference curvesb. they cross, they cannot be used in the analysisc. the problems arising from intersecting community indifference curves can beovercome by the application of the compensation principled. all of the above.8. Which of the following is not true for a nation that is in equilibrium in isolation?a. It consumes inside its production frontierb. it reaches the highest indifference curve possible with its production frontierc. the indifference curve is tangent to the nation's production frontierd. MRT of X for Y equals MRS of X for Y, and they are equal to Px/Py9. If the internal Px/Py is lower in nation 1 than in nation 2 without trade:a. nation 1 has a comparative advantage in commodity Yb. nation 2 has a comparative advantage in commodity Xc. nation 2 has a comparative advantage in commodity Yd. none of the above10. 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/Py11. If Px/Py exceeds the equilibrium relative Px/Py with tradea. the nation exporting commodity X will want to export more of X than at equilibriumb. the nation importing commodity X will want to import less of X than at equilibriumc. Px/Py will fall toward the equilibrium Px/Pyd. all of the above12. With free trade under increasing costs:a. neither nation will specialize completely in productionb. at least one nation will consume above its production frontierc. a small nation will always gain from traded. all of the above13. Which of the following statements is false?a.The gains from trade can be broken down into the gains from exchange and thegainsfrom specializationb. gains from exchange result even without specializationc. gains from specialization result even without exchanged. none of the above14. The gains from exchange with respect to the gains from specialization are always:a. greaterb. smallerc. equald. we cannot say without additional information15. Mutually beneficial trade cannot occur if production frontiers are:a. equal but tastes are notb. different but tastes are the samec. different and tastes are also differentd. the same and tastes are also the same.Multiple Choice Questions Ch.41. Which of the following statements is correct?a. The demand for imports is given by the excess demand for the commodityb. the supply of exports is given by the excess supply of the commodityc. the supply curve of exports is flatter than the total supply curve of the commodityd. all of the above2. At a relative commodity price above equilibriuma. the excess demand for a commodity exceeds the excess supply of the commodityb. the quantity demanded of imports exceeds the quantity supplied of exportsc. the commodity price will falld. all of the above3. 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 exports4. The offer curve of a nation bulges toward the axis measuring the nation'sa. import commodityb. export commodityc. export or import commodityd. nontraded commodity5. 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 above6. 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 theequilibrium quantity with traded. none of the above7. Which of the following statements regarding partial equilibrium analysis is true?a.The demand and supply curves are derived from the nation's production frontier andindifference mapb. It shows the same basic information as offer curvesc. It shows the same equilibrium relative commodity prices as with offer curvesd. all of the above8. In what way does partial equilibrium analysis differ from general equilibrium analysis?a. The former but not the latter can be used to determine the equilibrium price with tradeb.the former but not the latter can be used to determine the equilibrium quantity withtradec.the former but not the latter takes into consideration the interaction among allmarketsin the economyd. the former gives only an approximation to the answer sought.9. If the terms of trade of a nation are 1.5 in a two-nation world, those of the trade partner are:a. 3/4b. 2/3c. 3/2d. 4/310. If the terms of trade increase in a two-nation world, those of the trade partner:a. deteriorateb. improvec. remain unchangedd. any of the above11. If a nation does not affect world prices by its trading, itsoffer curve:a. is a straight lineb. bulges toward the axis measuring the import commodityc. intersects the straight-line segment of the world's offer curved. intersects the positively-sloped portion of the world's offer curve12. If the nation's tastes for its import commodity increases:a. the nation's offer curve rotates toward the axis measuring its import commodityb. the partner's offer curve rotates toward the axis measuring its import commodityc. the partner's offer curve rotates toward the axis measuring its export commodityd. the nation's offer curve rotates toward the axis measuring its export commodity13. If the nation's tastes for its import commodity increases:a. the nation's terms of trade remain unchangedb. the nation's terms of trade deterioratec. the partner's terms of trade deteriorated. any of the above14. If the tastes for a nation import commodity increases, trade volume:a. increasesb. declinesc. remains unchangedd. any of the above15. A deterioration of a nation's terms of trade causes the nation's welfare to:a. deteriorateb. improvec. remain unchangedd. any of the aboveMultiple-Choice Questions ch.51. 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. Which is not an assumption of the H-O modela. the same technology in both nationsb. constant returns to scalec. complete specializationd. equal tastes in both nations3. With equal technology nations will have equal K/L in production if:a. factor prices are the sameb. tastes are the samec. production functions are the samed. all of the above4. We say that commodity Y is K-intensive with respect to X when:a. more K is used in the production of Y than Xb. less L is used in the production of Y than Xc. a lower L/K ratio is used in the production of Y than Xd. a higher K/L is used in the production of X than Y5. When w/r falls, L/Ka. falls in the production of both commoditiesb. rises in the production of both commoditiesc. can rise or falld. is not affected6. A nation is said to have a relative abundance of K if it has a:a. greater absolute amount of Kb. smaller absolute amount of Lc. higher L/K ratiod. lower r/w7. A difference in relative commodity prices between nations can be based on a difference in:a. technologyb. factor endowmentsc. tastesd. all of the above8. In the H-O model, international trade is based mostly on a difference in:a. technologyb. factor endowmentsc. economies of scaled. tastes9. According to the H-O-S model, trade reduces international differences in:a. relative but not absolute factor pricesb. absolute but not relative factor pricesc. both relative and absolute factor pricesd. neither relative nor absolute factor prices10. According to the H-O-S model, international trade will:a. reduce international differences in per capita incomesb. increases international differences in per capita incomesc. may increase or reduce international differences in per capita incomesd. lead to complete specialization11. The H-O model is a general equilibrium model because it deals with:a. production in both nationsb. consumption in both nationsc. trade between the two nationsd. all of the above12. The H-O model is a simplification of the a truly general equilibrium modelbecause it deals with:a. two nationsb. two commoditiesc. two factors of productiond. all of the above13. The Leontief paradox refers to the empirical finding that U.S.a. import substitutes are more K-intensive than exportsb. imports are more K-intensive than exportsc. exports are more L-intensive than importsd. exports are more K-intensive than import substitutes14. From empirical studies, we conclude that the H-O theory:a. must be rejectedb. must be accepted without reservationsc. can be accepted while awaiting further testingd. explains all international trade15. 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 factorsMultiple-Choice Questions Ch. 6:1. Relaxing the assumptions on which the Heckscher-Ohlin theory rests:a. leads to rejection of the theoryb. leaves the theory unaffectedc. requires complementary trade theoriesd. any of the above.1.Which of the following assumptions of the Heckscher-Ohlin theory, when relaxed,leavethe theory unaffected?a. Two nations, two commodities, and two factorsb. both nations use the same technologyc. the same commodity is L-intensive in both nationsd. all of the above2.Which of the following assumptions of the Heckscher-Ohlin theory, when relaxed,require new trade theories?a. Economies of scaleb. incomplete specializationc. similar tastes in both nationsd. the existence of transportation costs3.International trade can be based on economies of scale even if both nations haveidentical:a. factor endowmentsb. tastesc. technologyd. all of the above5. A great deal of international trade:a. is intra-industry tradeb. involves differentiated productsc. is based on monopolistic competitiond. all of the above6. The Heckscher-Ohlin and new trade theories explains most of the trade:a. among industrial countriesb. between developed and developing countriesc. in industrial goodsd. all of the above4.The theory that a nation exports those products for whicha large domestic market existswas advanced by:a. Linderb. Vernonc. Leontiefd. Ohlin8. Intra-industry trade takes place:a. because products are homogeneousb. in order to take advantage of economies of scalec. because perfect competition is the prevalent form of market organizationd. all of the above1.If a nation exports twice as much of a differentiated product that it imports, its intra-industry (T) index is equal to:a. 1.00b. 0.75c. 0.666d. 0.2510. Trade based on technological gaps is closely related to:a. the H-O theoryb. the product-cycle theoryc. Linder's theoryd. all of the above11. 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 above12. Transport costs:a. increase the price in the importing countryb. reduces the price in the exporting countryc. both of the aboved. neither a nor b.13. Transport costs can be analyzed:a. with demand and supply curvesb. production frontiersc. offer curvesd. all of the above14. The share of transport costs will fall less heavily on the nation:a. with the more elastic demand and supply of the tradedcommodityb. with the less elastic demand and supply of the traded commodityc. exporting agricultural productsd. with the largest domestic market15. 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 b.Multiple-choice Questions Ch.81. Which of the following statements is incorrect?a.An ad valorem tariff is expressed as a percentage of the value of the tradedcommodityb. a specific tariff is expressed as a fixed sum of the value of the traded commodity.c. export tariffs are prohibited by the U.S. Constitutiond. The U.S. uses exclusively the specific tariff2. A small nation is one:a. which does not affect world price by its tradingb. which faces an infinitely elastic world supply curve for its import commodityb.whose consumers will pay a price that exceeds the world price by the amount ofthetariffd. all of the above3. If a small nation increases the tariff on its import commodity, its:a. consumption of the commodity increasesb. production of the commodity decreasesc. imports of the commodity increased. none of the above4.The increase in producer surplus when a small nation imposes a tariff is measured bythearea:a. to the left of the supply curve between the commodity price with and without thetariffb. under the supply curve between the quantity produced with and without the tariffc. under the demand curve between the commodity price with and without the tariffd. none of the above.5. If a small nation increases the tariff on its import commodity:a. the rent of domestic producers of the commodity increasesb. the protection cost of the tariff decreasesc. the deadweight loss decreasesd. all of the above6. Which of the following statements is incorrect with respect to the rate of effectiveprotection?a. for given values of ai and ti, g is larger the greater is tb. for a given value of t and ti, g is larger the greater is a ic. g exceeds, is equal to or is smaller than t, as t i is smallerthan, is equal to or islarger than td. when a i t i exceeds t, the rate of effective protection is positive7. With a i=50%, t i=0, and t=20%, g is:a. 40%b. 20%c. 80%d. 08. The imposition of an import tariff by a small nation:a. increases the relative price of the import commodity for domestic producers andconsumersb.reduces the relative price of the import commodity for domestic producers andconsumersc. increases the relative price of the import commodity for the nation as a wholed. any of the above is possible9. The imposition of an import tariff by a small nation:a. increases the nation's welfareb. reduces the nation's welfarec. leaves the nation's welfare unchangedd. any of the above is possible10. 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 possible11. The imposition of an import tariff by a nation results in:a. an increase in relative price of the nation's import commodityb. an increase in the nation's production of its importable commodityc. reduces the real return of the nation's abundant factord. all of the above12. The imposition of an import tariff by a nation can be represented by a rotation of the:a. nation's offer curve away from the axis measuring the commodity of its comparativeadvantageb.the nation's offer curve toward the axis measuring the commodity of itscomparativeadvantagec.the other nation's offer curve toward the axis measuring the commodity of itscomparative advantaged.the other nation's offer curve away from the axis measuring the commodity of itscomparative advantage13. The imposition of an import tariff by a large nation:a. increases the nation's terms of tradeb. reduces the volume of tradec. may increase or reduce the nation's welfared. all of the above14. 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 above15. The optimum tariff for a small nation is:a. 100%b. 50%c. 0d. depends on elasticitiesMultiple-choice Questions Ch. 9:1. An import quota:a. increases the domestic price of the imported commodityb. reduces domestic consumptionc. increases domestic productiond. all of the above2. An increase in the demand of the imported commodity subject to a given import quota:a. reduces the domestic quantity demanded of the commodityb. increases the domestic production of the commodityc. reduces the domestic price of the commodityd. reduces the producers' surplus3. Adjustment to any shift in the domestic demand or supply of an importable commodityoccurs:a. in domestic price with an import quotab. in the quantity of imports with a tariffc. through the market mechanism with an import tariff but not with an import quotad. all of the above4. An international cartel refers to:a. dumpingb. an organization of exportersc. an international commodity agreementd. voluntary export restraints5. The temporary sale of a commodity at below cost or at a lower price abroad in order todrive foreign producers out of business is called:a. predatory dumpingb. sporadic dumpingc. continuous dumpingd. voluntary export restraints6. The type of dumping which would justify antidumping measures by the country subjectto the dumping is:a. predatory dumpingb. sporadic dumpingc. continuous dumpingd. all of the above7. A fallacious argument for protection is:a. the infant industry argumentb. protection for national defensec. the scientific tariffd. to correct domestic distortions8. 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 torepayfor the higher prices paid by domestic consumers of thecommodity during the infancyperiodc. is inferior to an equivalent production subsidy to the infant industryd. all of the above9. 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. all of the above10. Industrial policy refers to:a.an activist policy by the government of an industrial country to stimulate thedevelopment of an industryb.the granting of a subsidy to a domestic industry to stimulate the development ofanindustryc. the granting of a subsidy to a domestic industry to counter a foreign subsidyd. all of the above11. Game theory refers to:a. a method of choosing the optimal strategy in conflict situationsb. the granting of a subsidy to correct a domestic distortionc. the theory of tariff protectiond. none of the above12. Trade protection in the United States is usually providedto:a. low-wage workersb. well-organized industries with large employmentc. industries producing consumer productsd. all of the above13. The most-favored-nation principle refers to:a. extension to all trade partners of any reciprocal tariff reduction negotiated by theU.S. with any of its trade partnersb. multilateral trade negotiationc. the General Agreement on Tariffs and Traded. the International Trade Organization14. On which of the following principles does GATT rest?a. nondiscriminationb. elimination of nontariff barriersc. consultation among nations in solving trade disputesd. all of the above15. Which of the following was not negotiated under the Uruguay Round?a. reduction of tariffs on industrial goodsb. replacement of quotas with tariffsc. reduction of subsidies on industrial products and on agricultural exportsd. liberalization in trade in most servicesMultiple-choice Questions for Ch. 131. Which of the following is false?a. A credit transaction leads to a payment from foreignersb. A debit transaction leads to a payment to foreignersc. A credit transaction is entered with a negative signd. Double-entry bookkeeping refers to each transactionentered twice.2. Which of the following is a debit?a. The export of goodsb. The export of servicesc. Unilateral transfers given to foreignersd. Capital inflows3. Capital inflows:a. refer to an increase in foreign assets in the nationb. refer to a reduction in the nation's assets abroadc. lead to a payment from foreignersd. all of the above4. When a U.S. firm imports goods to be paid in three months the U.S. credits:a. the current accountb. unilateral transfersc. capitald. official reserves5.The receipt of an interest payment on a loan made by a U.S. commercial bank to aforeignresident is entered in the U.S. balance of payments as a:a. credit in the capital accountb. credit in the current accountc. credit in official reservesd. debit in unilateral transfers6. The payment of a dividend by an American company to a foreign stockholder represents:a. a debit in the U.S. capital accountb. a credit in the U.S. capital account。

国际经济学考试题库（答案版）一、试述H-O模型的主要内容并予以评价。

1、基本内容：资本丰富的国家在资本密集型产品上相对供给能力较强，劳动丰富的国家则在劳动密集型产品上相对供给能力较强。

根据比较优势原则，一国出口密集使用其丰富要素的产品，进口密集使用其稀缺要素的产品。

要素的自然禀赋—要素供给—要素的相对富饶程度—要素相对价格—生产成本差异—商品价格差异—贸易的发生2、评价：贡献：a、从一国经济资源优势解释国际贸易发生的原因；b、从实际优势出发决定贸易模式；c、从贸易对经济的影响分析贸易的作用。

局限性：a、禀赋并非贸易发生的充分条件；b、对需求因素未予以充分考虑，影响了理论对实际情况的分析；c、过分强调静态结果，排除技术进步及实际存在的情况，影响了理论的适用性。

二、结合货币市场和外汇市场，以美元为本币，请画图美联储增加货币供给后，美元对欧元的汇率将如何变动。

外汇指的是以外国货币表示的，为各国普遍接受的，可用于国际间债权债务结算的各种支付手段。

货币政策是指政府或中央银行为影响经济活动所采取的措施，尤指控制货币供给以及调控利率的各项措施。

一国货币供给的增加会使该国货币在外汇市场上贬值。

美国的货币市场决定美元的利率，美元利率则影响维持利率平价的汇率。

所以当美联储增加货币供给后，会导致美元相对欧元的贬值。

但美元供给的变动对长期利率和实际产出没有影三、什么是恶性通货膨胀，可能导致恶性通货膨胀的原因以及应对措施。

恶性通货膨胀又称“超速通货膨胀”，是三位数以上的通货膨胀。

指流通货币量的增长速度大大超过货币流通速度的增长，货币购买力急剧下降，物价水平加速上升，整体物价水平以极高速度快速上涨的现象，使民众对货币价值失去信心。

由于货币的流通量增加快速，使货币变得没有价值时，人们会急于要以货币换取实物，人心惶惶的结果只会更加速通货膨胀的恶化，整体经济濒临崩溃边缘。

恶性通货膨胀是一种不能控制的通货膨胀，在物价很快地上涨的情况下，就使货币失去价值。

国际经济学模拟习题（3）一、True or False （10*1’=10’）1. Trade is a zero-sum activity; if one country gains, theother must lose.2. A nation maximizes satisfaction by reaching the highestpossible indifference curve, and in the absence of trade will produce where its production possibilitiesschedule is tangent to an indifference curve.3. The factor endowments model predicts thatinternational trade will tend to equalize the prices oftrade-able goods among nations, but to increase thewage gap between capital-abundant and labor-abundant nations.4. A tax of 10 percent on imports of shoes would be anexample of a specific tariff.5. An import quota will not raise the domestic price ofthe product as would a tariff, because it is not a tax onimports.6. In balance-of-payments account, a transaction resultingin receipt of a payment is recorded as a credit,whereas a transaction resulting in a payment to othernations is recorded as a debit.7. Because they do not include an exchange of goods orservices, unilateral transfers do not appear on anation's balance of payments account.8. David Hume was one of the first economists to provideanalytical support for mercantilist trade policies.9. A nation would be most likely to find its trade balanceimproving after a currency depreciation if that nation’sdemand for imports and foreign demand for its exportswas very inelastic.10. A nation with neither a balance of payments surplus nora balance of payments deficit is said to be in internalbalance.二、choices（15*3’=45’）1. The law of comparative advantagea). was ratified by the World Trade Organizationb). explains how all countries can benefit when each specializes in producing items in which it has the greatest relative efficiencyc). explains how only the most efficient nations can benefit from traded). is used to evaluate a country’s military strength2. The theory of absolute advantage was developed bya. the Mercantilistsb. David Humec. Adam Smithd. David Ricardo3. David Ricardo developed the principle of comparative advantage showing thata. a nation must be the least-cost producer of a good in order to export that itemb. no nation could have an absolute advantage in all goodsc. in a two-country example, only one nation can have a comparative advantaged. even a nation that has lower productivity in all goods can benefit by exporting the item in which it is relatively less inefficient4. An indifference curvea. shows that most people really are indifferent about international tradeb. shows the demand preferences of consumersc. reflects the relative costs of production within a nationd. indicates how much labor a country has5. To maximize its satisfaction, a nation will ensure that its terms-of-trade linea. is tangent to its production possibilities frontier at one point (production point) and also to the highest attainable indifference curve at another point (consumption point)b. is tangent to its production possibilities frontier and intersects an indifference curvec. intersects its production possibilities frontier and is tangent to an indifference curved. intersects its production possibilities frontier at one point and an indifference curve at another point6. Factor-price equalization predicts that with international tradea. the price of a nation’s abundant factor will rise and that of its scarce factor will fallb. the price of a nation’s abundant factor will fall and that of its scarce factor will risec. the prices of a nation’s abundant and scarce factors both will rised. the prices of a nation’s abundant and scarce factors both will fall7. The effective rate of protectiona. distinguishes between tariffs that are effective and those that are ineffectiveb. is the minimum level at which a tariff becomes effectiv e in limiting importsc. shows the increase in value-added for domestic production that a particular tariff structure makes possible, in percentage termsd. shows how effective a tariff is in raising revenue8. The institutional framework developed in 1947 to promote trade liberalization is known asa. the GATTb. the WTOc. the IMFd. The World Bank9. Developing nationsa. have very limited involvement in international tradeb. trade mostly with each otherc. rely heavily on exports of primary products to industrial nationsd. rely heavily on exports of manufactured products10. A customs union is unique in that ita. has no tariffs on trade among member nationsb. has no tariffs on trade among member nations and a common set of tariffs on imports from non-membersc. has no tariffs on trade among member nations, a common set of tariffs on imports from non-members, and free mobility of factors of production such as labor and capital among membersd. allows unrestricted labor immigration from no n-member nations11. A nation's balance of payments statementa. is a record of that nation's assets abroad and its liabilities to those from other nationsb. is an accounting adjustment process ensuring that a nation's exports will be equal to its importsc. does not include transactions of foreign citizens or companies living or operating within that nationd. is a record of the economic transactions between residents of that nation and the rest of the world, usually for a period of one year.12. Since balance-of-payments accounting is a double-entryaccounting system, an export of U.S. wheat to Mexico paid for by a deposit to the U.S. exporters account in a Mexican bank would be recorded on the U.S. balance of payments as a. a credit for merchandise exports and a credit to short-term financial flowsb. a credit for merchandise exports and a debit to short-termfinancial flows.c. a credit for merchandise exports and a debit to unilateral transfersd. a credit for merchandise exports and a debit to official settlements13. The foreign-exchange marketa. is located in New Yorkb. is a market in Chicago for the international trading of commodities such as wheat or copper.c. is a mechanism for individuals and institutions to exchange one national or regional currency or debt instrument for those of other nations or regions.d. is open from 9:00 a.m. to 3:00 p.m. New York time, Monday through Friday.14. Market fundamentals that might be expected to influenceexchange rate movements include all of the following factors excepta. differences in real income growth rates between countriesb. differences in real interest rates between countriesc. speculative opinion about future exchange ratesd. changes in perceived profitability of economic investments between two countries15. If inflation is higher in Mexico than in the United States, the law of one price would predict thata. trade between Mexico and the United States would declineb. the dollar price of autos purchased in Mexico would behigher than the dollar price of comparable autos purchased in the United Statesc. the peso would appreciate relative to the dollar by anamount equal in percentage terms to the difference between the two inflation ratesd. the peso would depreciate relative to the dollar by anamount equal in percentage terms to the difference between the two inflation rates三、Questions（45’, answer these questions in Chinese）1. Assume that labor is the only factor used in production, and that the costs of producing butter and cloth are given by the table below.(8’)(1) Express the price of butter relative to the price of cloth in terms of labor content for Home and Foreign in t he absence of trade.(2) What do these relative prices reveal about each country’s comparative advantage?(3) What do these relative prices suggest about the world price of butter relative to cloth that will exist once these countries trade with each other?(4) If the world price stabilizes at 1 with trade, what are the gains by the Home country achieved through trade with the Foreign country?2. Explain the immiserizing growth and list the case for immiserizing growth to be occur. (8’)3. Explain the exchange rate overshooting th eory (8’)4. Suppose that the nominal interest rate on 3-month Treasurybills is 8 percent in the United States and 6 percent in the United Kingdom, and the rate of inflation is 10 percent in the United States and 4 percent in the United Kingdom.(9’)(1) What is the real interest rate in each nation?(2) In which direction would international investment flow inresponse to these real interest rates?(3) What impact would these investment flows have on the dollar’s exchange value?5. What effects does labor migration have on the country ofimmigration? The country of emigration? The world as a whole?(12’)国际经济学模拟习题（3）参考答案一、判断题（每题1分，共10分）╳√ ╳╳╳√ ╳╳╳╳二、选择题（每题3分，共45分）bcdba acacb dbccd三、简答题（共45分）1、(1) 封闭条件下，本国可以用一半的生产一单位布的劳动时间生产一单位黄油。

International Economics’Middle Test1.The mercantilists would have objected to:a. Export promotion policies initiated by the governmentb. The use of tariffs or quotas to restrict importsc.Trade policies designed to accumulate gold and other precious metalsd. International trade based on open markets2. Unlike Adam Smith, David Ricardo’ s trading principle emphasizes the:a. Demand side of the marketb. Supply side of the marketc. Role of comparative costsd. Role of absolute costs3. A nation that gains from trade will find its consumption point being located:a. Inside its production possibilities curveb.Along its production possibilities curvec.Outside its production possibilities curved.None of the above4. If a production possibilities curve is bowed out (i.e., concave) in appearance, production occurs under conditions of:a. Constant opportunity costsb. Increasing opportunity costsc. Decreasing opportunity costsd. Zero opportunity costs5.Increasing opportunity costs suggest that:a.Resources are not perfectly shiftable between the production of two goodsb.Resources are fully shiftable between the production of two goodsc. A country ’ s production possibilities curve appears as a straight lined. A country ’ s production possibilities curve is bowed inward (i.e., convex) in appearance6. The trading- triangle concept is used to indicate a nation’ s:a. Exports, marginal rate of transformation, terms of tradeb.Imports, terms of trade, marginal rate of transformationc.Marginal rate of transformation, imports, exportsd.Terms of trade, exports, imports7.The earliest statement of the principle of comparative advantage is associated with:a. Adam Smithb.David Ricardoc.Eli Heckscherd. Bertil Ohlin8.When a nation achieves autarky equilibrium:a. Input price equals final product priceb. Labor productivity equals the wage ratec.Imports equal exportsd.Production equals consumption9.The gains from international trade increase as:a. A nation consumes inside of its production possibilities scheduleb. A nation consumes along its production possibilities schedulec. The international terms of trade rises above the nation ’ s autarky priced. The international terms of trad e approaches the nation ’ s autarky price10. Under free trade, Canada would not enjoy any gains from trade with Sweden if Canada:a. Trades at the Canadian rate of transformationb. Trades at Sweden ’ s rate of transformationc. Specializes completely in the production of its export goodd. Specializes partially in the production of its export good11. A rise in the price of imports or a fall in the price of exports will:a. Improve the terms of tradeb. Worsen the terms of tradec. Expand the production possibilities curved. Contract the production possibilities curve12. A term-of-trade index that equals 90 indicates that compared to the base year:a.It requires a greater output of domestic goods to obtain the same amount of foreign goodsb.It requires a lesser amount of domestic goods to obtain the same amount of foreign goodsc.The price of exports has fallen from $100 to $90d.The price of imports has fallen from $100 to $9013.The use of indifference curves helps us determine the point:a. Along the production possibilities curve a country will chooseb. At which a country maximizes its resource productivityc. At which a country ceases to become competitived. Where the marginal rate of transformation approaches zero14. The equilibrium prices and quantities established after trade are fully determinate if we know:a. The location of all countries ’ indifferenceb. curvesTheshape of each country ’ s production possibilities curvec. The comparative costs of each trading partnerd.The strength of world supply and demand for each good15. In the absence of trade, a nation is in equilibrium where a community indifference curve:1a. Lies above its production possibilities curveb. Is tangent to its production possibilities curvec. Intersects its production possibilities curved. Lies below its production possibilities curve16. Which of the following is false concerning indifference curves?a. They illustrate how the nation ranks alternative consumption bundlesb. Higher curves refer to more satisfactionc. They are negatively sloped, being bowed out away from the diagram ’ s origind. They reflect the tastes and preferences of a consumer17.The marginal rate of substitution is measured by the absolute value of the slope of a (an):a. Production possibilities curveb. Indifference curvec. Production possibilities curved. Demand curve18. According to Staffan Linder, trade between two countries tends to be most pronounced when the countries:a.Find their tastes and preferences to be quite harmoniousb.Experience economies of large-scale production over large output levelsc.Face dissimilar relative abundances of the factors of productiond.Find their per capita income levels to be approximately the same19.Which of the following is a long-run theory, emphasizing changes in the trading position of a nation over a number of years?a.Theory of factor endowmentsparative advantage theoryc.Theory of the product cycled.Overlapping demand theory20.The Leontief paradox questioned the validity of the theory of:a. Comparative advantageb. Factor endowmentsc. Overlapping demandsd. Absolute advantage21.When considering the effects of transportation costs, the conclusions of our trade model must be modified. This is because transportation costs result in:a.Lower trade volume, higher import prices, smaller gains from tradeb.Lower trade volume, lower import prices, smaller gains from tradec.Higher trade volume, higher import prices, smaller gains from traded.Higher trade volume, lower import prices, greater gains from trade22.Eli Heckscher and Bertil Ohlin are associated with the theory of comparative advantage that stresses differences in:a. Income levels among countriesb. Tastes and preferences among countriesc. Resource endowments among countriesd. Labor productivities among countries23. A firm is said to enjoy economies of scale over the range of output for which the long-run average cost is:a. Increasingb. Constantc. Decreasingd. None of the above24. Which of the following best applies to the theory of overlapping demands?a. Manufactured goodsb. Servicesc. Primary productsd. None of the above25. Which trade theory is tantamount to a short-run version of the factor price equalization theory?a. Specific factors theoryb. Product life cycle theoryc. Economies of scale theoryd. Overlapping demand theory26. Intraindustry trade can be explained in part by:a. Adam Smith ’ s principle of absolute advantageb. Perfect competition in product marketsc. Diseconomies of large scale productiond. Transportation costs between and within nations27. Which of the following would least likely apply to the product life cycle theory?a. Calculators and computersb. Coal and crude oilc. Home movie camerasd. Office machinery28. According to the factor endowment model, countries heavily endowed with land will:a. Devote excessive amounts of resources to agricultural production c. Export products that are land-intensiveb. Devote insufficient amounts of resources to agricultural production d. Import products that are land-intensive29. Given free trade, small nations tend to benefit the most from trade since they:a. Are more productive than their large trading partnersb. A re less productive than their large trading partnersc.Have demand preferences and income levels lower than their large trading partnersd.Enjoy terms of trade lying near the opportunity costs of their large trading partners30.The terms of trade is given by the prices:a. Paid for all goods imported by the home countryb.Received for all goods exported by the home countryc.Received for exports and paid for importsd.Of primary products as opposed to manufactured productsAnswer:dccba dbdca baadb cbdcb accaa dbcdc2。

Chapter 24Measuring the Cost of LivingTRUE/FALSE1. The consumer price index is used to monitor changes in an economy’s production of goods and services overtime.ANS: F DIF: 2 REF: 24-0NAT: Analytic LOC: The study of economics and definitions of economicsTOP: CPI MSC: Interpretive2. When the consumer price index falls, the typical family has to spend fewer dollars to maintain the samestandard of living.ANS: T DIF: 2 REF: 24-0NAT: Analytic LOC: The study of economics and definitions of economicsTOP: CPI MSC: Interpretive3. Economists use the term inflation to describe a situation in which the economy’s overall price level is rising. ANS: T DIF: 1 REF: 24-0NAT: Analytic LOC: Unemployment and inflation TOP: InflationMSC: Definitional4. The inflation rate is the absolute change in the price level from the previous period.ANS: F DIF: 1 REF: 24-0NAT: Analytic LOC: Unemployment and inflation TOP: Inflation rateMSC: Definitional5. Inflation can be measured using either the GDP deflator or the consumer price index.ANS: T DIF: 2 REF: 24-0NAT: Analytic LOC: Unemployment and inflationTOP: Inflation | CPI | GDP deflator MSC: Interpretive6. The inflation rate reported in the news is usually calculated from the GDP deflator rather than the consumerprice index.ANS: F DIF: 2 REF: 24-0NAT: Analytic LOC: Unemployment and inflationTOP: Inflation rate | CPI | GDP deflator MSC: Interpretive7. Because the consumer price index reflects the goods and services bought by consumers better than the GDPdeflator does, it is the more common gauge of inflation.ANS: T DIF: 1 REF: 24-0NAT: Analytic LOC: Unemployment and inflationTOP: Inflation | CPI | GDP deflator MSC: Definitional8. The CPI is a measure of the overall cost of the goods and services bought by a typical consumer.ANS: T DIF: 1 REF: 24-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: CPI MSC: Definitional9. Each week, the Bureau of Labor Statistics computes and reports the consumer price index.ANS: F DIF: 1 REF: 24-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: CPI MSC: Definitional10. The Bureau of Labor Statistics is part of the U.S. Department of Labor.ANS: T DIF: 1 REF: 24-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Bureau of Labor Statistics MSC: Definitional16191620 Chapter 24/Measuring the Cost of Living11. The Bureau of Labor Statistics determines which prices are most important to the typical consumer bysurveying consumers.ANS: T DIF: 1 REF: 24-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Bureau of Labor Statistics MSC: Definitional12. The content of the basket of goods and services used to compute the CPI changes every month.ANS: F DIF: 2 REF: 24-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: CPI MSC: Interpretive13. By keeping the basket of goods and services the same when computing the CPI, the Bureau of Labor Statisticsisolates the effects of price changes from the effect of any quantity changes that might be occurring at the same time.ANS: T DIF: 1 REF: 24-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: CPI MSC: Definitional14. When the consumer price index is computed, the base year is always the first year among the years beingconsidered.ANS: F DIF: 2 REF: 24-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: CPI MSC: Interpretive15. The CPI for 2008 is computed by dividing the price of the basket of goods and services in 2008 by the price ofthe basket of goods and services in the base year, then multiplying by 100.ANS: T DIF: 2 REF: 24-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: CPI MSC: Interpretive16. The CPI is always 1 in the base year.ANS: F DIF: 1 REF: 24-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: CPI MSC: Definitional17. If the current year CPI is 140, then the price level has increased 40 percent since the base year.ANS: T DIF: 2 REF: 24-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: CPI MSC: Applicative18. If the current year CPI is 90, then the price level has decreased 10 percent since the base year.ANS: T DIF: 2 REF: 24-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: CPI MSC: Applicative19. The inflation rate for 2007 is computed by dividing (the CPI in 2007 minus the CPI in 2006) by the CPI in2006, then multiplying by 100.ANS: T DIF: 2 REF: 24-1NAT: Analytic LOC: Unemployment and inflation TOP: Inflation rateMSC: Interpretive20. If the value of the consumer price index is 110 in 2005 and 121 in 2006, then the inflation rate is 11 percentfor 2006.ANS: F DIF: 2 REF: 24-1NAT: Analytic LOC: Unemployment and inflation TOP: Inflation rateMSC: ApplicativeChapter 24/Measuring the Cost of Living 1621 21. The producer price index measures the cost of a basket of goods and services bought by firms rather thanconsumers.ANS: T DIF: 1 REF: 24-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: PPI MSC: Definitional22. Changes in the consumer price index are useful in predicting changes in the producer price index.ANS: F DIF: 2 REF: 24-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: CPI | PPI MSC: Interpretive23. Data from the Bureau of Labor Statistics show that the largest category of consumer spending is housing. ANS: T DIF: 1 REF: 24-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Categories of consumer spending MSC: Definitional24. Data from the Bureau of Labor Statistics show that consumer spending on transportation is only slightlyhigher than consumer spending on food and beverages.ANS: T DIF: 1 REF: 24-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Categories of consumer spending MSC: Definitional25. Data from the Bureau of Labor Statistics show that consumer spending on medical care is about equal toconsumer spending on recreation and consumer spending on education and communication.ANS: T DIF: 1 REF: 24-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Categories of consumer spending MSC: Definitional26. Data from the Bureau of Labor Statistics show that apparel makes up 14 percent of the typical consumer’sbudget.ANS: F DIF: 1 REF: 24-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Categories of consumer spending MSC: Definitional27. The goal of the consumer price index is to gauge how much incomes must rise to maintain a constant standardof living.ANS: T DIF: 1 REF: 24-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: CPI MSC: Definitional28. Substitution bias occurs because the CPI ignores the possibility of consumer substitution toward goods thathave become relatively less expensive.ANS: T DIF: 2 REF: 24-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: CPI | Substitution bias MSC: Interpretive29. Substitution bias causes the CPI to understate the increase in the cost of living from one year to the next. ANS: F DIF: 1 REF: 24-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: CPI | Substitution bias MSC: Definitional30. When a new good is introduced, consumers have more variety from which to choose, and this in turn increasesthe cost of maintaining the same level of economic well-being.ANS: F DIF: 1 REF: 24-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: CPI | Introduction of new goods MSC: Definitional31. The CPI does not reflect the increase in the value of the dollar that arises from the introduction of new goods. ANS: T DIF: 1 REF: 24-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: CPI | Introduction of new goods MSC: Definitional1622 Chapter 24/Measuring the Cost of Living32. If the quality of a good deteriorates from one year to the next while its price remains the same, then the valueof a dollar falls.ANS: T DIF: 1 REF: 24-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: CPI | Quality change MSC: Definitional33. The Bureau of Labor Statistics does not try to account for quality changes in the goods and services in thebasket used to compute the CPI.ANS: F DIF: 2 REF: 24-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: CPI | Quality change MSC: Interpretive34. There is no longer much debate among economists concerning the severity of and the solution to the problemsin using the CPI to measure the cost of living.ANS: F DIF: 2 REF: 24-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: CPI MSC: Interpretive35. Many economists believe the bias in the CPI is now only about half as large as it once was.ANS: T DIF: 1 REF: 24-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: CPI MSC: Definitional36. The CPI and GDP deflator usually tell two different stories about how quickly prices are rising.ANS: F DIF: 2 REF: 24-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: CPI | GDP deflator MSC: Interpretive37. When the price of Italian wine rises, this change is reflected in the U.S. CPI but not in the U.S. GDP deflator. ANS: T DIF: 2 REF: 24-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: CPI | GDP deflator MSC: Applicative38. When the price of nuclear missiles rises, this change is reflected in the CPI but not in the GDP deflator. ANS: F DIF: 2 REF: 24-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: CPI | GDP deflator MSC: Applicative39. In the U.S., when the price of oil rises, the CPI rises by much more than does the GDP deflator.ANS: T DIF: 2 REF: 24-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: CPI | GDP deflator MSC: Applicative40. The group of goods and services used to compute the GDP deflator changes automatically over time, but thegroup of goods and services used to compute the CPI does not.ANS: T DIF: 2 REF: 24-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: CPI | GDP deflator MSC: Applicative41. The purpose of measuring the overall level of prices in the economy is to permit comparison between dollarfigures from different times.ANS: T DIF: 1 REF: 24-2NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Comparing dollar figures MSC: Definitional42. A dollar figure from 1908 is converted into 2008 dollars by dividing the 2008 price level by the 1908 pricelevel, then multiplying by the 1908 dollar figure.ANS: T DIF: 2 REF: 24-2NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Comparing dollar figures MSC: InterpretiveChapter 24/Measuring the Cost of Living 1623 43. If the CPI today is 120 and the CPI five years ago was 80, then something that cost $1 five years ago wouldcost $1.50 in today's prices.ANS: T DIF: 2 REF: 24-2NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Comparing dollar figures MSC: Applicative44. Henry Ford paid his workers $5 a day in 1914, when the CPI was 10. Today, with the price index at 177, the$5 a day is worth $88.50.ANS: T DIF: 2 REF: 24-2NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Comparing dollar figures MSC: Applicative45. If you currently make $25,000 a year and the CPI rises from 110 today to 150 in five years, then you need tobe making $43,333.33 in five years to have kept pace with consumer price inflation.ANS: F DIF: 2 REF: 24-2NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Comparing dollar figures MSC: Applicative46. When some dollar amount is automatically corrected for inflation by law or contract, the amount is said to beindexed for inflation.ANS: T DIF: 1 REF: 24-2NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Indexation MSC: Definitional47. A COLA automatically raises the wage when the CPI rises.ANS: T DIF: 1 REF: 24-2NAT: Analytic LOC: The study of economics and definitions of economicsTOP: COLA MSC: Definitional48. The U.S. income tax system is completely indexed for inflation.ANS: F DIF: 2 REF: 24-2NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Indexation MSC: Interpretive49. Bob deposits $100 in a bank account that pays an annual interest rate of 5 percent. A year later, Bobwithdraws his $105. If inflation was 2 percent durin g the year the money was deposited, then Bob’spurchasing power has increased by 3 percent.ANS: T DIF: 2 REF: 24-2NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Real interest rate MSC: Applicative50. Bob deposits $100 in a bank account that pays an annual interest rate of 5 percent. A year later, Bobwithdraws his $105. If inflation was 5 percent during the year the money was deposited, then Bob’spurchasing power has not changed.ANS: T DIF: 2 REF: 24-2NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Real interest rate MSC: Applicative51. Bob deposits $100 in a bank account that pays an annual interest rate of 5 percent. A year later, Bobwithdraws his $105. If inflation was 7 percent during the year the money was deposited, then Bob’spurchasing power has increased by 2 percent.ANS: F DIF: 2 REF: 24-2NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Real interest rate MSC: Applicative52. Bob deposits $100 in a bank account that pays an annual interest rate of 5 percent. A year later, Bobwithdraws his $105. If deflation was 5 percent during the year the money was deposited, then Bob’spurchasing power has not changed.ANS: F DIF: 2 REF: 24-2NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Real interest rate MSC: Applicative1624 Chapter 24/Measuring the Cost of Living53. Bob deposits $100 in a bank account that pays an annual interest rate of 5 percent. A year later, Bobwithdraws his $105. If deflation was 7 percent during the year the money was deposited, then Bob’spurchasing power has increased by 12 percent.ANS: T DIF: 2 REF: 24-2NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Real interest rate MSC: Applicative54. The real interest rate measures the change in dollar amounts.ANS: F DIF: 1 REF: 24-2NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Nominal interest rate MSC: Definitional55. The real interest rate is the interest rate corrected for inflation.ANS: T DIF: 1 REF: 24-2NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Real interest rate MSC: Definitional56. The nominal interest rate tells you how fast the number of dollars in your bank account rises over time. ANS: T DIF: 1 REF: 24-2NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Nominal interest rate MSC: Definitional57. The real interest rate tells you how fast the purchasing power of your bank account rises over time.ANS: T DIF: 1 REF: 24-2NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Real interest rate MSC: Definitional58. If the nominal interest rates rises, then the inflation rate must have increased.ANS: F DIF: 2 REF: 24-2NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Nominal interest rate | Inflation rate MSC: Interpretive59. If the nominal interest rate is 5 percent and the inflation rate is 2 percent, then the real interest rate is 7 percent. ANS: F DIF: 2 REF: 24-2NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Real interest rate MSC: Applicative60. If the nominal interest rate is 5 percent and the real interest rate is 2 percent, then the inflation rate is 3 percent. ANS: T DIF: 2 REF: 24-2NAT: Analytic LOC: Unemployment and inflation TOP: Inflation rateMSC: Applicative61. If the real interest rate is 5 percent and the inflation rate is 2 percent, then the nominal interest rate is 7 percent. ANS: T DIF: 2 REF: 24-2NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Nominal interest rate MSC: Applicative62. The value of the consumer price index increased from 140 to 147 during 2006. Nathan opened a bankaccount at the beginning of 2006, and at the end of 2006 his account balance was $12,840. The purchasing power of Nathan’s account increased by 2 percent during the year. We can conclude that Nathan opened his account with a deposit of $11,500 at the beginning of 2006.ANS: F DIF: 3 REF: 24-2NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Nominal interest rate | Real interest rate MSC: Analytical63. The U.S. economy has experienced rising consumer prices in every year since 1965.ANS: T DIF: 1 REF: 24-2NAT: Analytic LOC: Unemployment and inflation TOP: U.S. inflationMSC: DefinitionalChapter 24/Measuring the Cost of Living 1625 64. The U.S. economy has never experienced deflation.ANS: F DIF: 2 REF: 24-2NAT: Analytic LOC: Unemployment and inflation TOP: U.S. inflationMSC: Interpretive65. In the late 1970s, U.S. nominal interest rates were high and real interest rates were low, but in the late 1990s,U.S. nominal interest rates were low and real interest rates were high.ANS: T DIF: 2 REF: 24-2NAT: Analytic LOC: The study of economics and definitions of economicsTOP: U.S. interest rates MSC: InterpretiveSHORT ANSWER1. In a simple economy, people consume only 2 goods, food and clothing. The market basket of goods used tocompute the CPI consists of 50 units of food and 10 units of clothing.a.What are the percentage increases in the price of food and in the price of clothing?b.What is the percentage increase in the CPI?c.Do these price changes affect all consumers to the same extent? Explain.ANS:a.The price of food increased by 50 percent ([6-4]/4 x 100). The price of clothing increased by 100percent ([20-10]/10 x 100).b.In 2002, the market basket cost $300 (4x50 + 10x10); in 2003, it cost $500 (6x50 + 20x10). Thepercentage increase in the CPI is 66.7 percent ([500-300]/300 x 100).c.Because the price of clothing increased relatively more than the price of food, people who purchase a lotof clothing and little food became worse off relative to people who purchase a lot of food and littleclothing.DIF: 2 REF: 24-1 NAT: AnalyticLOC: The study of economics and definitions of economics TOP: CPIMSC: Applicative2. Which is likely to have the larger effect on the CPI, a 2 percent increase in the price of food or a 3 percentincrease in the price of diamond rings? Explain.ANS:The 2 percent increase in the price of food will increase the CPI by more because the portion of the market basket consisting of food is much larger than the portion consisting of diamond rings.DIF: 2 REF: 24-1 NAT: AnalyticLOC: The study of economics and definitions of economics TOP: CPIMSC: Interpretive3. List the three major problems in using the CPI as a measure of the cost of living.ANS:(1) Substitution bias. The CPI ignores the fact that consumers substitute toward goods that have become relatively less expensive. (2) Introduction of new goods. Because the CPI uses a fixed basket of goods, it does not take into account the increased well-being of consumers created when new goods are introduced. (3) Unmeasured quality change. Not all quality changes can be measured.DIF: 2 REF: 24-1 NAT: AnalyticLOC: The study of economics and definitions of economics TOP: CPIMSC: Interpretive1626 Chapter 24/Measuring the Cost of Living4. Why does the GDP deflator give a different rate of inflation than the CPI?ANS:The GDP deflator and the CPI differ in two important ways. The GDP deflator uses as a basket all final goods and services produced in the domestic economy, while the CPI basket includes goods and services purchased by typical consumers. Therefore, changes in the price of imported goods affect the CPI, but not the GDP deflator. Also, changes in the price of domestically produced capital goods affect the GDP deflator, but not the CPI. Changes in the price of domestically produced consumer goods are likely to affect the CPI more than the GDP deflator because it is likely that those goods make up a larger part of consumer budgets than of GDP.DIF: 2 REF: 24-1 NAT: AnalyticLOC: The study of economics and definitions of economics TOP: CPI | GDP deflatorMSC: Interpretive5. Compute how much each of the following items is worth in terms of today's dollars using 177 as the priceindex for today.a.In 1926, the CPI was 17.7 and the price of a movie ticket was $0.25.b.In 1932, the CPI was 13.1 and a cook earned $15.00 a week.c.In 1943, the CPI was 17.4 and a gallon of gas cost $0.19.ANS:a.The movie ticket is worth $.25 177/17.7 = $2.50 in today's dollars.b.The cook’s weekly wage is worth $15.00 177/13.1 = $202.67 in today's dollars.c.The gallon of gas is worth $.19 177/17.4 = $1.93 in today's dollars.DIF: 2 REF: 24-2 NAT: AnalyticLOC: The study of economics and definitions of economics TOP: Comparing dollar figures MSC: Applicative6. Jay and Joyce meet George, the banker, to work out the details of a mortgage. They all expect that inflationwill be 2 percent over the term of the loan, and they agree on a nominal interest rate of 6 percent. As it turns out, the inflation rate is 5 percent over the term of the loan.a.What was the expected real interest rate?b.What was the actual real interest rate?c.Who benefited and who lost because of the unexpected inflation?ANS:a.The expected real interest rate was 4 percent (6-2).b.The actual real interest rate was 1 percent (6-5).c.George, the banker, lost because he received less real interest income than he expected. Jay and Joycegained because they paid less real interest income than they expected.DIF: 2 REF: 24-2 NAT: AnalyticLOC: The study of economics and definitions of economics TOP: Real interest rateMSC: ApplicativeSec00 - Measuring the Cost of LivingMULTIPLE CHOICE1. Babe Ruth, the famous baseball player, earned $80,000 in 1931. Today, the best baseball players can earnmore than 300 times as much as Babe Ruth earned in 1931. However, prices have also risen since 1931.We can conclude thata.the best baseball players today are about 300 times better off than Babe Ruth was in 1931.b.because prices have also risen, the standard of living of baseball stars hasn't changed since 1931.c.one cannot make judgments about changes in the standard of living based on changes in prices andchanges in incomes.d.one cannot determine whether baseball stars today enjoy a higher standard of living than Babe Ruthdid in 1931 without additional information regarding increases in prices since 1931.ANS: D DIF: 2 REF: 24-0NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Prices | Standard of living MSC: InterpretiveChapter 24/Measuring the Cost of Living 16272. The consumer price index is used toa.monitor changes in the level of wholesale prices in the economy.b.monitor changes in the cost of living over time.c.monitor changes in the level of real GDP over time.d.monitor changes in the stock market.ANS: B DIF: 1 REF: 24-0NAT: Analytic LOC: The study of economics and definitions of economicsTOP: CPI MSC: Definitional3. The consumer price index is used toa.convert nominal GDP into real GDP.b.turn dollar figures into meaningful measures of purchasing power.c.characterize the types of goods and services that consumers purchase.d.measure the quantity of goods and services that the economy produces.ANS: B DIF: 1 REF: 24-0NAT: Analytic LOC: The study of economics and definitions of economicsTOP: CPI MSC: Definitional4. Which of the following is not correct?a.The consumer price index gives economists a way of turning dollar figures into meaningfulmeasures of purchasing power.b.The consumer price index is used to monitor changes in the cost of living over time.c.The consumer price index is used by economists to measure the inflation rate.d.The consumer price index is used to measure the quantity of goods and services that the economy isproducing.ANS: D DIF: 2 REF: 24-0NAT: Analytic LOC: The study of economics and definitions of economicsTOP: CPI MSC: Interpretive5. When the consumer price index rises, the typical familya.has to spend more dollars to maintain the same standard of living.b.can spend fewer dollars to maintain the same standard of living.c.finds that its standard of living is not affected.d.can offset the effects of rising prices by saving more.ANS: A DIF: 1 REF: 24-0NAT: Analytic LOC: The study of economics and definitions of economicsTOP: CPI | Standard of living MSC: Definitional6. When the consumer price index falls, the typical familya.has to spend more dollars to maintain the same standard of living.b.can spend fewer dollars to maintain the same standard of living.c.finds that its standard of living is not affected.d.can save less because they do not need to offset the effects of rising prices.ANS: B DIF: 2 REF: 24-0NAT: Analytic LOC: The study of economics and definitions of economicsTOP: CPI | Standard of living MSC: Interpretive7. Economists use the term inflation to describe a situation in whicha.some prices are rising faster than others.b.the economy's overall price level is rising.c.the economy's overall price level is high, but not necessarily rising.d.the economy's overall output of goods and services is rising faster than the economy's overall pricelevel.ANS: B DIF: 1 REF: 24-0NAT: Analytic LOC: Unemployment and inflation TOP: InflationMSC: Definitional1628 Chapter 24/Measuring the Cost of Living8. The term inflation is used to describe a situation in whicha.the overall level of prices in the economy is increasing.b.incomes in the economy are increasing.c.stock-market prices are rising.d.the economy is growing rapidly.ANS: A DIF: 1 REF: 24-0NAT: Analytic LOC: Unemployment and inflation TOP: InflationMSC: Definitional9. When the overall level of prices in the economy is increasing, economists say that the economy isexperiencinga.economic growth.b.stagflation.c.inflation.d.deflation.ANS: C DIF: 1 REF: 24-0NAT: Analytic LOC: Unemployment and inflation TOP: InflationMSC: Definitional10. The inflation rate is defined as thea.price level in an economy.b.change in the price level from one period to the next.c.percentage change in the price level from the previous period.d.price level minus the price level from the previous period.ANS: C DIF: 1 REF: 24-0NAT: Analytic LOC: Unemployment and inflation TOP: Inflation rateMSC: Definitional11. The economy's inflation rate is thea.price level in the current period.b.change in the price level from the previous period.c.change in the gross domestic product from the previous period.d.percentage change in the price level from the previous period.ANS: D DIF: 1 REF: 24-0NAT: Analytic LOC: Unemployment and inflation TOP: Inflation rateMSC: Definitional12. The inflation rate you are likely to hear on the nightly news is calculated froma.the GDP deflator.b.the CPI.c.the Dow Jones Industrial Average.d.the unemployment rate.ANS: B DIF: 2 REF: 24-0NAT: Analytic LOC: Unemployment and inflation TOP: Inflation rateMSC: Interpretive13. Which of the following is correct?a.The GDP deflator is better than the CPI at reflecting the goods and services bought by consumers.b.The CPI is better than the GDP deflator at reflecting the goods and services bought by consumers.c.The GDP deflator and the CPI are equally good at reflecting the goods and services bought byconsumers.d.The GDP deflator is more commonly used as a gauge of inflation than the CPI is.ANS: B DIF: 2 REF: 24-0NAT: Analytic LOC: The study of economics and definitions of economicsTOP: CPI | GDP deflator MSC: Interpretive。

Part Ⅰ. Fill in the blank with suitable content.1.Seven themes recur throughout the study of international economics. These are the gains from trade , the pattern of trade , protectionism the balance of payments, exchange rate determination, international policy coordination, international capital market.2. Countries engage in international trade for two basic reasons : comparative advantage and economics of scale .3. A country has a comparative advantage in producing a good if the opportunity cost of producing that good in terms of other goods is lower in that country than it is in other countries.4. Labor is the only one factor of production. LC a 、LW a and *LC a 、*LW a are the unit laborrequirement in cheese and wine at Home and Foreign, respectively. If aLC/aLW<aLC*/aLW* ,Home has a comparative advantage in cheese. C p /W p is the relative price of cheese, when aLC/aLW< Pc/Pw<aLC*/aLW* Home and Foreign specialize in producing cheese and wine , respectively.5. Labor is the only one factor of production. LC a 、LW a and *LC a 、*LW a are the unit laborrequirement in cheese and wine at Home and Foreign, respectively. L and L*are Home’s andForeign’s labor force. If LC a /LW a <C p /W p <*LC a /*LW a , the world relative supply of cheese equals（L/aLC ）/(L*/aLW*) . Home’s gains from indirectly producing wine can be shown as (1/aLC)(Pc/Pw)－1/aLW6. In specific factors model(Q M =Q M (K, L M ); Q F =Q F (T, L F ); L=L M +L F ), if Home produces and trades manufactured goods for food , the overall comparison of the five change rate of goods price andfactor price MP ˆ、F P ˆ、K r ˆ、T r ˆ、W ˆinside Home is T F M K r P W P r ∧∧∧∧∧〉〉〉〉 . That is, the real↑↑M .7. There are two main reasons why international trade has strong effects on the distribution ofincome. First, resources can ’t move immediately or costlessly form one industry to another Second Industries differ in the factors of production they demand.8. In the Heckscher-Ohlin model,Comparative advantage is influenced by the interaction betweenrelative abundance and relative intensity9.According to stolper-sammelson effect if the relative price of a good rises, the real income of the factor which intensively used in that good will rise, while the real income of the other factor will fall.10.According to 罗布津斯基效应 Rybczynski effect , at unchanged relative goods price, if the supply of a factor of production increases, the output of the good that are intensive in that factor will rise, while the output of the other good will fall.11.According to H-O 模型H-O proposition , owners of a country’s abundant factors gain from trade, but owners of a country’s scare factors lose.12.According to 要素价格均等化命题 Factor price equalization proposition , international trade produces a convergence （收敛） of relative goods prices. This convergence, in turns, causes the convergence of the relative factor prices. Trade leads to complete equalization of factor prices.（完整的要素价格均等化）13. Three assumptions （假设） crucial to the prediction of factor price equalization are in reality untrue. These assumptions are (1) 两个国家都生产两种产品 both countries produce both goods (2) 两国技术相同 technologies are the same (3) 存在贸易壁垒：天然壁垒和人为壁垒There are barriers to trade: natural barriers and artificial barriers .14.“U.S. exports were less capit al-intensive than U.S. imports” is known as 里昂惕夫悖论 Leontiefparadox .15.The Ricardian Model , the Specific Factor model and the H-O model may be viewed as special cases （特殊情况） of 标准贸易模型 standard trade models16.The standard trade model derives （派生 推导） a world relative supply curve （曲线） from production possibilities and a world relative demand curve from preferences .17.To export-biased growth, if the decline （下降） of the welfare caused by the deterioration （恶化） of the terms of trade swap over （交换） the rise of the welfare caused by growth, the growth is immiserizing growth (贫困化增长).18. Some economists argued that export-biased growth by poor nations would worsen their term of trade so much that they would be worse off than if they had not grown at all. This situation is known as immiserizing growth (贫困化增长) .19.Immiserizing growth demands strict conditions, these conditions are economic growth is strongly export-biased , the growing country is large enough to affect the world price , RS and RD must be very steep .20.According to “ 梅茨勒悖论Metzle paradox ”, t ariffs and export subsidies （补贴） might have perverse （有害的） effects on internal price.21.In the model of “Monopolistic （垄断） Competition and Trade”, firms of an individual nation face the trade-off between economies of scale and variety of products .22. Marshall argued that there were three main reasons why a cluster of firms （企业集群）may be more efficient than an individual firm in isolation: specialized supplies , labor market pooling , knowledge spillovers (知识溢出)23.The pattern of intraindustry （产业内） trade itself is unpredicted, history and accident determine the details of the trade pattern. 39. When there is external economies （外部经济）, the pattern of international trade is determined by economics of scale interact with comparative advantage .24. The indexes （指标）of intrainindustry trade of a industry can be calculated by the standard formula:25. Interindustry trade and intrainindustry （产业内） trade are the sources of gains from trade . When countries are similar in their relative factor supplies 、scale economies and product differentiations are important , intrainindustry trade is the dominant source （主要来源） of gains from trade, everyone gains from trade.26.The argument of temporary （暂时的） protection of industries to enable them to gain experience is known as 幼稚产业论the infant industry argument27. If we add together the gains and losses from a tariff, We find the net effect on nationalwelfare can be separated into two parts: terms of trade gain and efficiency loss 28.Why do countries adopt trade policies such as tariff or import quota, which produce more costs than benefits?—— trade politics 29.In the political economy of trade policy （贸易政策的政治经济学） , government are assumed to （被假定为）maximize 政治成功political success rather than 国家福利 national welfare . 30.Deviations from free trade can sometimes increase national welfare. These arguments include the term of trade argument for a tariff and the domestic market failure argument31.According to “Specific rule (对症规则) ”, domestic market failure should be corrected by domestic policies aimed directly at the problem’s sources.32. Although market failures are probably common, the domestic market failure argument against free trade should not be applied too freely.First domestic market failure should be corrected by domestic policies aimed directly at the problems ’ sources ;Second economists cannot diagnose marketexp 1exp orts importsI orts imports -=-+failure well enough to prescribe policy.33. International trade often produces losers as well as winners. In the actual politics of trade policy, income distribution is of crucial importance. 集体行动问题The problem of collective action can explain why policies that not only seem to produce more costs than benefits but that also seem to hurt far more voters them they can help can nonetheless be adopted.34.The WTO includes four aspects content: GATT 1994,GATS,TRIPS , TRIMS35.“Nondiscriminatory” principles （非歧视性原则）include most favored nation principle and national treatment principle36.For preferential（优惠）trading agreements, such as customs union , countries must cede part of their sovereignty to supranational entity（必须放弃部分主权的超国家实体）37.Whether a customs union（关税同盟）is desirable（可取）or undesirable depends on whetherindustrialization and coping with the problems of the dual economy. Correspondingly, there are two main arguments for developing countries to pursue policy of import-substituting industrialization. The two arguments are the infant industry argument t and market failure justification for infant industry protection.40. Sophisticated proponents of the infant industry argument have identified two market failures as reasons why infant industry protection may be a good idea:The imperfect capital markets justification and The appropriability argument .PartⅡ. True or False (true and false are denoted by “T” and “F”, respectively)1. If a LW*/a L C*<a LW/a L C, Home’s relat ive productivity in cheese is higher. (T )2. According to the Ricardian model, it is precisely because the relative wage is between the relative productivities that each country ends up with a cost advantage in one good.The good for which *Li a/Li a>w/*w will be produced in Foreign. ( F )3. It is precisely because the relative wage is between the relative productivities that each country ends up with a cost advantage in one good. ( T )4.Long-run convergence(长期收敛) in productivity（生产力）produces long-run convergence inwages. ( T )5. “Korean workers earn only $2.50 an hour; if we allow Korea to export as much as it likes to the United States, our workers will be forced down to the same level. You can’t import a $5 shirt without importing the $2.50 wage that goes with it.” (F )6.The proposition that trade is beneficial is unqualified(不合格). That is, there is no requirement that a country be “competitive” or that the trade be “fair”. ( T)7. Free trade is beneficial only if your country is strong enough to stand up to foreign competition.( F )8. Foreign competition is unfair and hurts other countries when it is based on low wages. （F）9. Trade exploits a country and make it worse off if its workers receive much lower wage than workers in other nations. (F )10.The Ricardian Model predicts an extreme degree(预测一个极端的程度) of specialization(专业化). ( T )11.The Ricardian Model neglects(忽略) the effects on income distribution. (T )12. The basic prediction of the Ricardian model has been strongly confirmed by a number of studies over years. ( T )13. The Ricardian Model predicts that countries tend to export those goods in which their productivity is relative high. ( T )14. We can think of factor specificity as a matter of time. ( T )15.The opportunity cost of manufacture in terms of food is denoted by(表示) MPL M /MPL F. ( F )16.A equal proportional change in price have no real effects on the real wage, real income of capital owner and land owner. ( T )17. Trade benefits the factor that is specific to the import-competing sectors of each country but hurts the factor to the export sectors, with ambiguous effects on mobile factors. ( F )18.It is possible in principle for a country’s government to use taxes and subsidies(补贴) to redistribute（重新分配）income to give each individual more of both goods. ( T )19. Although international trade has strong effects on income distribution, there are still possible in principle to make each individual better off. ( T )20. Typically, those who gain from trade in any particular product are a much more concentrated, informed, and organized group than those who lose. ( F )21. Conflicts of interest(利益冲突) within nations are usually more important in determining trade policy than conflicts of interest between nations. ( T )22. Generally, economists do not regard the income distribution effects of trade as a good reason to limit trade. ( T )23.The formulation of trade policy(贸易政策的制定) is a kind of political process(政治进程). ( T )24. “The world’s poorest countries can’t find anything to export. There is no resource that i s abundant—certainly not capital or land, and in small poor nations not even labor is abundant.” ( F )25. Wage inequality in U.S. increased between the late 1970s and the early 1990s, economists attribute the change to the growing exports of manufactured goods from NIEs. ( T )26. If the factor-proportion theory was right, a country would always export factors for which the income share exceeded the factor share, import factors for which it was less. ( F )27.The H-O model can predict not only the direction but the volume of trade(贸易量). ( T )28.Factor trade in general turns out to be much smaller than the H-O model predicts. ( T )29. According to an influential recent paper, the H-O model can predict not only the direction but the volume of trade. Factor trade in general turn out to be t he same a s the H-O model predicts. ( F )30. Only by dropping the Heckscher-Ohlin assumption that technologies are the same across the countries can the overall pattern of international trade be well predicted by the H-O model.( T )31.If a country want to maximize its national welfare, the consumption point is where the highest isovalue line is tangent to the highest reachable indifference curve. ( T )32.A rise in the terms of trade increases a country’s welfare, while a decline in the terms of trade reduces its welfare. ( T )33.Export-biased growth tends to improve the growing country’s terms of trade at the rest of the world’s expense.( F )34.If the two countries allocate(分配) their change in spending in the same proportions, there will not be a terms of trade effect. ( T )35. If the country receiving a transfer spends a higher proportion of an increase income on its export good than the giver, a transfer raises world relative demand for the recipient’s export good and thus improve its terms of trade. ( T )36.A transfer worsens the donor’s terms of trade if the donor has a higher mariginal propensity to spend on its export good than the recipient(受体). ( T )37.A transfer improves the donor’s terms of trade, worsens recipient’s terms of tra de. ( F )38.A transfer of income——say foreign aid——could conceivably leave the recipient worse off. ( T )39.A tariff improves Home’s terms of trade and worsens Foreign’s, while a Home export subsidy worsens Home’s terms of trade and improve Foreign’s.( T )40. Where there is economies of scale, there is imperfectly competitive market structure. ( F )41.If intraindustry trade is the dominant source of gains from trade, everyone gains from trade. ( T )42.Effect on the distribution of income within countries often weight more heavily on policy than terms of trade concerns. ( T )43.The usual market structure in industries characterized by internal economies of scale is monopolistic competition. ( F )44.Today, antidumping(反倾销) may be a device of protectionism. ( T )45.Reciprocal(相互) dumping tends to increase the volume of trade in goods that are quite identical（一致）. ( F )46.It is possible that reciprocal dumping increase national welfare. ( T )47.Strong external(外部) economies te nd to “locked in” the existing patterns of interindustry trade, even if the patterns are run counter to(背道而驰) comparative advantage. ( T )48.A trading country can conceivably lose from trade is potentially justify protectionism. ( T )49.Like static external economies, dynamic external economies can lock in an initial advantage in an industry. ( T )50.The stratigic trade policy is related to the model of “Monopolistic competition, differentiate product s and intraindustry trade”. ( F )51.The model “Oligopoly, homogeneous products and intraindustry trade” is first developed by Krugman and Helpman . ( F )52.Trade in factors is very much like trade in goods, it occurs for much the same reasons and produces similar results. ( T )53.Trade in factors is an alternative(替代) to trade in goods for the allocation of resources. ( T )54.Wh en a country borrows, it’s intertemporal PPF is biased toward Q P.( F )55.The relative price of future consumption goods Q P is (1+r). ( T )56.The dynamic path of TNC s’ enter foreign market：FDI→Export→Licence. (F )57.Tariffs may have very different effects on different stages of production of a good. ( T )58.Nominal(名义)tariff reflects the effective rate of protection(有效保护率). (F)59.The costs and benefits analysis of a tariff is correct if only the direct gains to producers and consumers in a given market accurately measure the social gains. ( T )60.The costs and benefits analysis of a tariff is correct if only a dollar’s worth of benefits to each group is the same. ( T )61.A VER is exactly like an import quota which the license are assigned to foreign government. ( T )62.VER S are much more costly than tariffs. ( T )63.Local content laws have been widely used by developing countries trying to shift their manufacturing from assembly back into intermediate goods. ( T )64. A political argument for free trade reflects the fact that a political commitment to free trade may be a good idea in practice even though there may be better policies in principle. ( T )65.Deviations from free trade can sometimes increase national welfare. (T )66.For a sufficiently small tariff the terms of trade gain of small country must outweigh theefficiency loss.( F )67.The domestic market failure argument against free trade is intellectually impeccable but of doubtful usefulness. (F )68. “U.S. farm exports don’t just mean hi gher incomes for farmers — they mean higher income for everyone who sell goods and services to the U.S. farm sector”. This remark is a potential validargument for export subsidy. ( T )69.Most deviations from free trade are adopted not because their benefit exceed their costs but because the public fails to understand their true costs. ( T )70.If there is marginal social costs rather than marginal social benefits, domestic market failure reinforce the case for free trade. ( T )71.The electoral competition model believes political competition will drive both parties to propose tariffs close to t M, the tariff preferred by the medium voter. ( T )72.The problem of collective action can best be overcome when a group is large and/or well organized. （F ）73.Trade policy that produce more costs than benefits, hurt more consumers than producers can’t be adopted.( F )74. As a violation of the MFN(“most favored nation”) principle, the WTO forbids preferent ial trading agreements in general, but allows them if they lead to free trade between the agreeing countries. ( T )75.The infant industry argument violates (违背)the principle of comparative advantage ( T )76.Import substituting industrialization(进口替代工业化) violates the principle of comparativeadvantage.( T )77. “Import quotas on capital-intensive industrial goods and subsidies for the import of capital equipment were meant to create manufacturing jobs in many developing countries. Unfortunately, they have probably helped create the urban unemployment problem.” ( T ) 78.The East Asian Miracle proved that industrialization and development must be based on import substitution. ( F )79.It is impossible for country to make itself worse off by joining accustoms union(联盟). ( F ) PartⅢ. Choose the ONLY one collect answer in each question.1. An important insight（启示）of international trade theory is that when countries exchange goods and services one with the other itA.is always beneficial to both countries.B.is usually beneficial to both countries.C.is typically beneficial only to the low wage trade partner country .D.is typically harmful to the technologically lagging country.E.tends to create unemployment in both countries.2. If there are large disparities（差距）in wage levels between countries, thenA. trade is likely to be harmful to both countries.B. trade is likely to be harmful to the country with the high wages.C. trade is likely to be harmful to the country with the low wages.D. trade is likely to be harmful to neither country.E. trade is likely to have no effect on either country.3.Cost-benefit analysis of international trade （成本收益分析）A.is basically useless.B.is empirically intractable.C.focuses attention on conflicts of interest within countries.D.focuses attention on conflicts of interests between countries.E.None of the above.4. A primary reason why nations conduct international trade is because of differences inA.historical perspective.B.location.C.resource availabilities.D.tastes.E.incomes.5. Arguments for free trade are sometimes disregarded（忽视）by the political process becauseA.economists tend to favor highly protected domestic markets.B.economists have a universally accepteddecisive power over the political decision mechanism.C.maximizing consumer welfare may not be a chief priority（优先）for politicians. 扩大消费者福利不是最主要的D.the gains of trade are of paramount concern to typical consumers.E.None of the above.6.Proponents（支持）of free trade claim all of the following as advantages except＿＿A. relatively high wage levels for all domestic workers.B. a wider selection of products for consumersC. increased competition for world producers.D. the utilization of the most efficient production processes.E. None of the above.In order to know whether a country has a comparative advantage in the production of one particular product we need information on at least ____unit labor requirementsA.oneB.twoC.threeD fourE five7. A country engaging in trade according to the principles of comparative advantage gains from trade because itD.is producing exports indirectly more efficiently than it could alternatively.E.is producing imports indirectly more efficiently than it could domestically.F.is producing exports using fewer labor units.G.is producing imports indirectly using fewer labor units.H.None of the above.8. A nation engaging in trade according to the Ricardian model will find its consumption bundle（消费约束）A.inside its production possibilities frontier.B.on its production possibilities frontier.C.outside its production possibilities frontier（生产可能性边界）.D.inside its trade-partner's production possibilities frontier.E.on its trade-partner's production possibilities frontier.9.If a very small country trades with a very large country according to the Ricardian model, thenA.the small country will suffer a decrease in economic welfare.B.the large country will suffer a decrease in economic welfare.C.the small country will enjoy gains from trade.D.the large country will enjoy gains from trade.E.None of the above.10.If the world terms of trade for a country are somewhere between the domestic cost ratio of H and that of F, thenA.country H but not country F will gain from trade.B.country H and country F will both gain from trade.C.neither country H nor F will gain from trade.D.only the country whose government subsidizes its exports will gain.E.None of the above.11.If a production possibilities frontier is bowed out (concave to the origin) )(上凸，凹面向原点), then production occurs under conditions ofA.constant opportunity costs.B.increasing opportunity costs.C.decreasing opportunity costs.D.infinite opportunity costs.E.None of the above.12.If two countries have identical production possibility frontiers, then trade between them is not likely ifA.their supply curves are identical.B.their cost functions are identical.C.their demand conditions identical.D.their incomes are identical.E.None of the above.13.Assume that labor is the only factor of production and that wages in the United States equal $20 per hour while wages in Japan are $10 per hour. Production costs would be lower in the United States as compared to Japan ifA.U.S. labor productivity equaled 40units per hour and Japan's 15 units per hour.B.U.S. productivity equaled 30 units per hour whereas Japan's was 20.C.U.S. labor productivity equaled 20 and Japan's 30.D.U.S. labor productivity equaled 15 and Japan's 25 units per hour.E.None of the above.14.International trade has strong effects on income distributions. Therefore, international tradeA.is beneficial to everyone in both trading countries.B.will tend to hurt one trading country.C.will tend to hurt some groups in each trading country.D.will tend to hurt everyone in both countries.E.will be beneficial to all those engaged in international trade.15.If the price of the capital intensive product rises, wages willA.rise but by less than the price of the capital-intensive product.（工资刚性，变动较慢）B.rise by more than the rise in the price of the capital-intensive product.C.remain proportionally equal to the price of the capital-intensive product.D.fall, since higher prices cause less demand.E.None of the above.16.If Australia has more land per worker, and Belgium has more capital per worker, then if trade were to open up between these two countries,A.the real income of capital owners in Australia would rise.B.the real income of labor in Australia would clearly rise.C.the real income of labor in Belgium would clearly rise.D.the real income of landowners in Belgium would fall. 贸易知识使一国丰富要素部门得利，稀缺要素部门受损）E.the real incomes of capital owners in both countries would rise.17.If the price of manufactures and the price of food increase by 25%, then A.the economy moves down its aggregate supply curve.B.the economy moves back along its aggregate demand curve.C.the relative quantities（相对数量）of manufactures and food remain unchanged.D.the relative quantities of products change by 25%.E.None of the above.18.If the price of manufactures rises, thenA.the price of food also rises.B.the quantity of food produced falls.C.the quantity of both manufactures and food falls.D.the purchasing power of labor in terms of food falls.E.None of the above.18.Groups that lose from trade tend to lobby(游说)the government to（贸易失利者游说政府）A.shift the direction of comparative advantage.B.abolish the Specific Factor model from practical application.C.provide public support for the relatively efficient sectors.D.provide protection for the relatively inefficient sectors.E.None of the above.19.The specific factor model argues that if land can be used both for food production and for manufacturing, then a quota that protects food production willA.clearly help landowners.B.clearly hurt landowners.C.clearly help manufacture but hurt food production.D.have an ambiguous effect on the welfare of landowners.E.None of the above.20.If, relative to its trade partners, Gambinia has many workers but very little land and even less productive capital, then, following the specific factor model, we know that Gambinia has a comparative advantage inA.manufactures.B.food.C.both manufactures and food.D.neither manufactures nor food.E.None of the above.21.In the 2-factor, 2 good Heckscher-Ohlin model, an influx of workers from across the border would（劳动者越过国境流入）A.move the point of production along the production possibility curve.B.shift the production possibility curve outward, and increase the production of both goods.C.shift the production possibility curve outward and decrease the production of the labor-intensive product.D.shift the production possibility curve量下降，扩展了生产可能性曲线，相当于扩展了消费的总量）E.None of the above.22.The 1987 study by Bowen, Leamer and SveikauskasA.supported the validity of the Leontieff Paradox.B.supported the validity of the Heckscher-Ohlin model.ed a two-country and two-product framework.D.demonstrated that in fact countries tend to use different technologies.E.proved that the U.S.'s comparative advantage relied on skilled labor.23.The Case of the Missing Trade refers toA.the 9th volume of the Hardy Boys' Mystery series.B.the fact that world exports does not equal world imports.C.the fact that factor trade is less than predicted by the Heckscher-Ohlin theory.D.the fact that the Heckscher Ohlin theory predicts much less volume of trade than actually exists.E.None of the above.24.One way in which the Heckscher-Ohlin model differs from the Ricardo model of comparative advantage is by assuming that _技术相同__ is (are) identical in all countries.A.factor of production endowmentsB.scale economiesC.factor of production intensitiesD.technologyE.opportunity costs25.As opposed to the Ricardian model of comparative advantage, the assumption of diminishing returns in the Heckscher-Ohlin model means that the probability is greater that with tradeA.countries will not be fully specialized （专业化）in one product.B.countries will benefit from free international trade.C.countries will consume outside their production possibility frontier.parative advantage is primarily supply related.E.None of the above.26.Suppose that there are two factors, capital and land, and that the United States is relatively land endowed while the European Union is relatively capital-endowed. According to the Heckscher-Ohlin model,A.European landowners should support US-European free trade.B.European capitalists should support US-European free trade.C.all capitalists in both countries should support free trade.D.all landowners should support free trade.E.None of the above.27.According to the Heckscher-Ohlin model, if the United State s is richly endowed in human-capital relative to Mexico, then as NAFTA increasingly leads to more bilateral free trade between the two countries,A.the United States will find its industrial base sucked into Mexico.B.Mexico will find its relatively highly skilled workers drawn to the United States.C.The wages of highly skilled U.S. workers will be drawn down to Mexican levels.D.The wages of highly skilled Mexican workers will rise to those in the United States.E.The wages of highly skilled Mexican workers will fall to those in the United States. （墨西哥高技术工人工资降低到美国同水平）28.If two countries were very different in their relative factor availabilities（相对要素丰。

《国际经济学》模拟试题及参考答案（一）一、名词解释（每小题 5 分，共 20 分)1。

要素禀赋：亦即要素的丰裕程度，是指在不同国家之间，由于要素的稀缺程度不同所导致的可利用生产要素价格相对低廉的状况。

赫克歇尔—俄林定理认为，要素禀赋构成一个国家比较优势的基础。

2.倾销：指出口商以低于正常价值的价格向进口国销售产品，并因此给进口国产业造成损害的行为。

3。

黄金输送点：黄金输送点包括黄金输入点和黄金输出点,是黄金输入、输出的价格上限和下限，它限制着一个国家货币对外汇率的波动幅度。

4.三元悖论：也称为三元冲突理论,即在开放经济条件下,货币政策的独立性、汇率的稳定性和资本的自由流动三个目标不可能同时实现，各国只能选择其中对自己有利的两个目标。

二、单项选择题2.根据相互需求原理，两国均衡的交换比例取决于（ C )A 两国的绝对优势B 两国的比较优势C 两国的相对需求强度D 两国的要素禀赋3。

在当今的国际贸易格局中，产业内贸易更容易发生于（ B ）A 发展中国家与发达国家B 发达国家与发达国家C 发展中国家与发展中国家D 发展中国家和最不发达国家4。

课征关税会增加生产者剩余，减少消费者剩余，社会总福利的变化将（ B ）A 上升B 降低C 不变D 不确定5。

以下选项中，哪个选项不属于国际收支统计中居民的概念？（ C ）A 外国企业B 非盈利机构C 国际经济组织D 政府7。

布雷顿森林体系创立了( B ）A 以英镑为中心的固定汇率制度B 以美元为中心的固定汇率制度C 以英镑为中心的有管理的浮动汇率制度D 以美元为中心的有管理的浮动汇率制度8。

在下列投资方式中,属于国际间接投资的是（ D ）A 在国外设立分公司B 在国外设立独资企业C 在国外设立合资企业D 购买国外企业债券9.经济非均衡的无形传导方式不包括（ C )A 技术转让B 信息交流C 信息回授D 示范效应10。

在斯图旺表中第三象限表示( C ）A 通货膨胀与国际收支顺差并存B 衰退与国际收支顺差并存C 衰退与国际收支逆差并存D 通货膨胀与国际收支逆差并存三、判断正误题1。

《国际经济学》模拟试卷（1）一、单项选择（10小题，每小题1分，共10分）：在四个备选答案中选择一个最适合的答案。

1．关于一般均衡分析的新古典模型，说法不正确的是（）。

A.国际贸易理论的标准模型B.采用2 2 1模型进行阐述C.将技术、要素禀赋、需求偏好集于一体D.由哈伯勒、勒纳、里昂惕夫和米德等人提出2．国际金融理论的发展一直是围绕着（）这一十分重要的问题而展开的。

A.外部平衡B.内部平衡C.外部平衡与内部平衡D.规模经济3．生产可能性曲线的假设条件有（）。

A.两种生产要素的总供给都是可变的B.生产要素可在两个部门间自由流动C.两种生产要素没有充分利用D.两种商品的生产技术条件是可变的4．要素密集度可借助于（）来说明。

A.社会无差异曲线B.需求曲线C.等产量曲线D.供给曲线5．国际贸易会（）贸易国出口部门特定要素的实际收入。

A.提高B.降低C.不影响D.可能影响6．在产品生命周期的产品成熟阶段，产品属于（）。

A.研究与开发密集型B.资本密集型C.劳动密集型D.土地密集型7．属于国际收支账户中服务项目的有（）。

A.证券投资B.商品修理C.计算机和信息服务D.非货币黄金8．购买力平价论（the theory of purchasing power parity），简称PPP理论，是（）在其1922年出版的《1914年以后的货币与外汇》（money and foreign exchange after 1914）中第一次系统阐述的。

A.勒纳B.卡塞尔C.凯恩斯D.多恩布什9．假设某国的边际消费倾向为0.80，边际进口倾向为0.30，试问该国的对外贸易乘数是（）。

A.1B.2C.3D.410．假设即期汇率l英镑=2美元，在欧洲市场美元一年期的利率为15%，英镑为10%，求一年后的远期汇率1英镑等于（）美元。

A.2.091B.2C.1.913D.3二、判断题（10小题，每小题1分，共10分）：若判断正确，在小题后的括号内填上“√”号；若判断不正确，则在小题后的括号内填上“×”号。

国际经济学试题及答案（题库）国际经济学习题集及参考答案一、填空、选择、判断题（每题1分）：第一章：1、国际贸易理论以微观经济学原理为基础，讨论世界范围内的资源配置问题。

2、最常用国际贸易模型的结构形式为两个国家、两种产品（或部门）和两种要素。

3、在完竞争的假设前提下，封闭条件下的相对价格是国际贸易产生的基础。

4、国家间的供给、需求方面的差异是造成相对价格的根源。

5、贸易后，国际均衡价格由两国的供需共同决定，国际均衡价格处于两国封闭下的相对价格之间。

6、国际贸易利益包括两个部分：来自交换的利益和来自专业化的利益。

7、贸易理论主要围绕三个问题展开：国际贸易的格局、国际贸易的条件、国际贸易的收益。

第二章：1、斯密的绝对优势论认为国际贸易的基础是各国之间劳动生产率的绝对差别；李嘉图的比较优势论认为国际贸易的基础是各国之间劳动生产率的相对差别。

2、哈伯勒首先用机会成本概念来阐明比较优势论。

3、重商主义者提倡的国家经济政策有：限制进口和鼓励出口，采取奖金、退税、协定和殖民地贸易等措施鼓励出口。

4、李嘉图认为在国际贸易中起决定作用的不是绝对成本，而是相对成本。

5、斯密的绝对优势论认为国际贸易的基础是各国之间劳动生产率的绝对差别；劳动生产率的比较优势论认为国际贸易的基础是各国之间劳动生产率的相对差别。

6、在李嘉图模型中，生产可能性边界线方程是一个线性方程式，表示A、B两国的PPF曲线是一条直线段。

7、重商主义者提倡的国家经济政策有：限制进口和鼓励出口，采取奖金、退税、协定和殖民地贸易等措施鼓励出口。

8、李嘉图认为在国际贸易中起决定作用的不是绝对成本，而是相对成本。

9、机会成本概念表明：彼种选择的机会成本就构成此种选择的机会成本。

选择题：1、首先用机会成本理论来解释比较优势原理的学者是： C、A、李嘉图B、罗布津斯基C、哈伯勒D、穆勒第三章：1、要素禀赋理论最初是由赫克歇尔和俄林提出的，后经萨缪尔森等人加工不断完善。