国际经济学复习题

国际经济学复习题CHAPTER 1THE INTERNATIONAL ECONOMY MULTIPLE-CHOICE QUESTIONS1. A primary reason why nations conduct international trade is because:a. Some nations prefer to produce one thing while others produce other thingsb. Resources are not equally distributed among all trading nationsc. Trade enhances opportunities to accumulate profitsd. Interest rates are not identical in all trading nations2. A main advantage of specialization results from:a. Economies of large-scale productionb. The specializing country behaving as a monopolyc. Smaller production runs resulting in lower unit costsd. High wages paid to foreign workers3. International trade in goods and services is sometimes used as a substitute for all of the followingexcept:a. International movements of capitalb. International movements of laborc. Domestic production of the same goods and servicesd. Domestic production of different goods and services4. If a nation has an open economy, it means that the nation:a. Allows private ownership of capitalb. Has flexible exchange ratesc. Has fixed exchange ratesd. Conducts trade with other countries5. International trade forces domestic firms to become more competitive in terms of:a. The introduction of new productsb. Product design and qualityc. Product priced. All of the above6. The movement to free international trade is most likely to generate short-term unemployment inwhich industries?a. Industries in which there are neither imports nor exportsb. Import-competing industriesc. Industries that sell to domestic and foreign buyersd. Industries that sell to only foreign buyers7. International trade is based on the idea that:a. Exports should exceed importsb. Imports should exceed exportsc. Resources are more mobile internationally than are goodsd. Resources are less mobile internationally than are goods8. Arguments for free trade are sometimes disregarded by politicians because:a. Maximizing domestic efficiency is not considered importantb. Maximizing consumer welfare may not be a chief priorityc. There exist sound economic reasons for keeping one’s economy isolated from othereconomiesd. Economists tend to favor highly protected domestic markets9. How much physical output a worker producers in an hour’s work depends o n:a. The worker’s motivation and skillb. The technology, plant, and equipment in usec. How easy the product is to manufactured. All of the above10. The largest amount of trade with the United States in recent years has been conducted by:a. Canadab. Germanyc. Mexicod. United Kingdom11. Increased foreign competition tends to:a. Intensify inflationary pressures at homeb. Induce falling output per worker-hour for domestic workersc. Place constraints on the wages of domestic workersd. Increase profits of domestic import-competing industries12. __________ is the ability of a firm/industry, under free and fair market conditions, to design,produce, and market goods and services that are better and/or cheaper than those of otherfirms/industries.a. Competitivenessb. Protectionismc. Comparative advantaged. Absolute advantage13. A firm’s __________, relative to that of other firms, is generally regarded as the most importantdeterminant of competitiveness.a. Income levelb. Tastes and preferencesc. Environmental regulationd. Productivity14. Free traders maintain that an open economy is advantageous in that it provides all of thefollowing except:a. Increased competition for world producersb. A wider selection of products for consumersc. The utilization of the most efficient production methodsd. Relatively high wage levels for all domestic workers15. Recent pressures for protectionism in the United States have been motivated by all of thefollowing except:a. U.S. firms shipping component production overseasb. High profit levels for American corporationsc. Sluggish rates of productivity growth in the United Statesd. High unemployment rates among American workersTRUE-FALSE QUESTIONST F 1. The two most important trading partners of the United States are Canada and Mexico. T F 2. The United States exports a larger percentage of its gross domestic product than Japan, Germany, and Canada.T F 3. Opening the economy to international trade tends to lessen inflationary pressures at home.T F 4. The benefits of international trade accrue in the forms of lower domestic prices, development of more efficient methods and new products, and a greater range ofconsumption choices.T F 5. In an open trading system, a country will import those commodities that it produces at relatively low cost while exporting commodities that can be produced at relativelyhigh cost.CHAPTER 2 FOUNDATIONS OF MODERN TRADE THEORY MULTIPLE-CHOICE QUESTIONS1. 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 the mercantilists, Adam Smith maintained that:a. Trade benefits one nation only at the expense of another nationb. Government control of trade leads to maximum economic welfarec. All nations can gain from free international traded. The world’s output of goods must remain constant over time3. The trading principle formulated by Adam Smith maintained that:a. International prices are determined from the demand side of the marketb. Differences in resource endowments determine comparative advantagec. Differences in income levels govern world trade patternsd. Absolute cost differences determine the immediate basis for trade4. 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 costs5. When a nation requires fewer resources than another nation to produce a product, the nation issaid to have a (an):a. Absolute advantage in the production of the productb. Comparative advantage in the production of the productc. Lower marginal rate of transformation for the productd. Lower opportunity cost of producing the product6. According to the principle of comparative advantage, specialization and trade increase a nation’stotal output since:a. Resources are directed to their highest productivityb. The output of the nation’s trading partner declinesc. The nation can produce outside of its production possibilities curved. The problem of unemployment is eliminated7. In a two-product, two-country world, international trade can lead to increases in:a. Consumer welfare only if output of both products is increasedb. Output of both products and consumer welfare in both countriesc. Total production of both products, but not consumer welfare in both countriesd. Consumer welfare in both countries, but not total production of both products8. As a result of international trade, specialization in production tends to be:a. Complete with constant costs—complete with increasing costsb. Complete with constant costs—incomplete with increasing costsc. Incomplete with constant costs—complete with increasing costsd. Incomplete with constant costs—incomplete with increasing costs9. 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 aboveUsing the data of Table 2.1, answer Questions 10 through 15.Table 2.1. Output Possibilities for the U.S. and the U.K.Output per Worker per DayCountry Tons of Steel TelevisionsUnited States 5 45United Kingdom 10 2010. Refer to Table 2.1. The United States has the absolute advantage in the production of:a. Steelb. Televisionsc. Both steel and televisionsd. Neither steel nor televisions11. Refer to Table 2.1. The United Kingdom has a comparative advantage in the production of:a. Steelb. Televisionsc. Both steel and televisionsd. Neither steel nor televisions12. Refer to Table 2.1. If trade opens up between the United States and the United Kingdom,American firms should specialize in producing:a. Steelb. Televisionsc. Both steel and televisionsd. Neither steel nor televisions13. Refer to Table 2.1. The opportunity cost of producing one ton of steel in the United States is:a. 3 televisionsb. 10 televisionsc. 20 televisionsd. 45 televisions14. Refer to Table 2.1. Mutually advantageous trade will occur between the United States and theUnited Kingdom so long as one ton of steel trades for:a. At least 1 television, but no more than 2 televisionsb. At least 2 televisions, but no more than 3 televisionsc. At least 3 televisions, but no more than 4 televisionsd. At least 4 televisions, but no more than 5 televisions15. Refer to Table 2.1. The United Kingdom gains most from trade if:a. 1 ton of steel trades for 2 televisionsb. 1 ton of steel trades for 3 televisionsc. 2 tons of steel trade for 4 televisionsd. 2 tons of steel trade for 5 televisions16. Concerning international trade restrictions, which of the following is false? Trade restrictions:a. Limit specialization and the division of laborb. 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 comparative disadvantage17. If a production possibilities curve is bowed out (i.e., concave) in appearance, production occursunder conditions of:a. Constant opportunity costsb. Increasing opportunity costsc. Decreasing opportunity costsd. Zero opportunity costs18. 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 appearance19. 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, imports20. Assuming increasing cost conditions, trade between two countries would not be likely if theyhave:a. Identical demand conditions but different supply conditionsb. Identical supply conditions but different demand conditionsc. Different supply conditions and different demand conditionsd. Identical demand conditions and identical supply conditionsTRUE-FALSE QUESTIONST F 1. According to the mercantilists, a nation’s welfare would improve if it maintained a surplus of exports over imports.T F 2. The mercantilists maintained that a free-trade policy best enhances a nation’swelfare.T F 3. The mercantilists contended that because one nation’s gains from trade come the expense of its trading partners, not all nations could simultaneously realize gainsfrom trade.T F 4. According to the price-specie-flow doctrine, a trade-surplus nation would experience gold outflows, a decrease in its money supply, and a fall in its price level.T F 5. The trade theories of Adam Smith and David Ricardo viewed the determination of competitiveness from the demand side of the market.T F 6. According to the principle of absolute advantage, international trade is beneficial to the world if one nation has an absolute cost advantage in the production of one goodwhile the other nation has an absolute cost advantage in the other good.T F 7. The principle of absolute advantage asserts that mutually beneficial trade can occur even if one nation is absolutely more efficient in the production of all goods.T F 8. The basis for trade is explained by the principle of absolute advantage according to David Ricardo and the principle of comparative advantage according to Adam Smith. T F 9. The principle of comparative advantage contends that a nation should specialize in and export the good in which its absolute advantage is smallest or its absolutedisadvantage is greatest.T F 10. The Ricardian theory of comparative advantage assumes only two nations and two products, labor can move freely within a nation, and perfect competition exists in allmarkets.T F 11. Assume that the United States is more efficient than the United Kingdom in the production of all goods. Mutually beneficial trade is possible according to theprinciple of absolute advantage, but is impossible according to the principle ofcomparative advantage.T F 12. It is possible for a nation not to have an absolute advantage in anything; but it is not possible for one nation to have a comparative advantage in everything and the othernation to have a comparative advantage in nothing.T F 13. Ricardo’s theory of comparative advantage was of limited relevance to the real world since it assumed that labor was only one of several factors of production.T F 14. Compared to Ricardian trade theory, modern trade theory provides a more general view of comparative advantage since it is based on all factors of production ratherthan just labor.T F 15. Constant opportunity costs suggest that the relative cost of producing one product in terms of the other will remain the same no matter where a nation chooses to locate onits production-possibilities schedule.T F 16. There are two explanations of constant opportunity costs: (1) factors of production are imperfect substitutes for each other; (2) all units of a given factor have differentqualities.T F 17. With increasing opportunity costs, a nation totally specializes in the production of the commodity of its comparative advantage; with constant opportunity costs, a nationpartially specializes in the production of the commodity of its comparativeadvantage.T F 18. A nation’s trade triangle denotes its exports, imports, and terms of trade.T F 19. International trade leads to increased welfare if a nation can achieve a post-trade consumption point lying inside of its production-possibilities schedule.T F 20. If the U.S. post-trade consumption point lies along its production possibilities schedule, the United States achieves a higher level of welfare with trade than withouttrade.CHAPTER 3INTERNATIONAL EQUILIBRIUM MULTIPLE-CHOICE QUESTIONS1. 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 consumer2. The amount of one good that is just sufficient to compensate the consumer for the loss of someamount of another good is referred to as:a. Absolute costb. Comparative costc. Marginal rate of transformationd. Marginal rate of substitution3. In autarky, the equilibrium relative price of one product in terms of another product for a countryis determined by the:a. Production possibilities curveb. Community indifference curvec. Community indifference mapd. Production possibilities curve and community indifference map4. In general, as we move downward along a country’s community indifference curve, the marginalrate of substitution of one product for another product:a. Increasesb. Decreasesc. Remains constantd. None of the above5. The introduction of community indifference curves into our trading example focuses attention onthe nation’s:a. Income levelb. Resource pricesc. Tastes and preferencesd. Productivity level6. Introducing indifference curves into our trade model permits us to determine:a. Where a nation chooses to locate along its production possibilities curve in autarkyb. The precise location of a nation’s production possibilities curvec. Whether absolute cost or comparative cost conditions existd. The currency price of one product in terms of another product7. 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 curve8. In the absence of trade, a nation is in equilibrium where a community indifference curve:a. Lies above its production possibilities curveb. Is tangent to its production possibilities curvec. Intersects its production possibilities curved. Lies below its production possibilities curve9. The use of indifference curves helps us determine the point:a. Along the terms-of-trade line a country will chooseb. Where a country maximizes its resource productivityc. At which a country ceases to become competitived. Where the marginal rate of transformation approaches zero10. With trade, a country will maximize its satisfaction when it:a. Moves to the highest possible indifference curveb. Forces the marginal rate of substitution to its lowest possible valuec. Consumes more of both goods than it does in autarkyd. Finds its marginal rate of substitution exceeding its marginal rate of transformation11. Trade between two nations would not be possible if they have:a. Identical community indifference curves but different production possibilities curvesb. Identical production possibilities curves but different community indifference curvesc. Different production possibilities curves and different community indifference curvesd. Identical production possibilities curves and identical community indifference curves12. Given a two-country and two-product world, the United States would enjoy all the attainablegains from free trade with Canada if it:a. Trades at the U.S. rate of transformationb. Trades at the Canadian rate of transformationc. Specializes completely in the production of both goodsd. Specializes partially in the production of both goods13. John Stuart Mill’s theory of reciprocal demand best applies when trading partners:a. Are of equal size and importance in the marketb. Produce under increasing cost conditionsc. Partially specialize in the production of commoditiesd. Have similar taste and preference levels14. The equilibrium prices and quantities established after trade are fully determinate if we know:a. The location of all countries’ indifference curvesb. The shape of each country’s production possibilities curvec. The comparative costs of each trading partnerd. The strength of world supply and demand for each good15. ―The equilibrium relative commodity price at which trade takes place is determined by theconditions of demand and supply for each commodity in both nations. Other things being equal, the nation with the more intense demand for the other nation’s exported good will gain less from trade than the natio n with the less intense demand.‖ This statement was first proposed by:a. Alfred Marshall with offer curve analysisb. John Stuart Mill with the theory of reciprocal demandc. Adam Smith with the theory of absolute advantaged. David Ricardo with the theory of comparative advantage16. Which of the following terms-of-trade concepts is calculated by dividing the change in acountry’s export price index by the change in its import price index between two points in time, multiplied by 100 to express the terms of trade in percentages?a. Commodity terms of tradeb. Income terms of tradec. Single factorial terms of traded. Double factorial terms of trade17. The best explanation of the gains from trade that David Ricardo could provide was to describeonly the outer limits within which the equilibrium terms of trade would fall. This is becauseRicardo’s theory did not recognize how market prices are influenced by:a. Demand conditionsb. Supply conditionsc. Business expectationsd. Profit patterns18. 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 zero19. Under free trade, Sweden enjoys all of the gains from trade with Holland if Sweden:a. Trades at Holland’s 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 good20. Because the Ricardian trade theory recognized only how supply conditions influenceinternational prices, it could determine:a. The equilibrium terms of tradeb. The outer limits for the terms of tradec. Where a country chooses to locate along its production possibilities curved. Where a country chooses to locate along its trade triangleTRUE-FALSE QUESTIONST F 1. Modern trade theory recognizes that the pattern of world trade is governed by both demand conditions and supply conditions.T F 2. A nation achieves autarky equilibrium at the point where its community indifference curve is tangent to its production possibilities schedule.T F 3. In autarky equilibrium, a nation realizes the lowest possible level of satisfaction given the constraint of its production possibilities schedule.T F 4. In autarky equilibrium, a nation’s marginal rate of transformation (measured by the slope of its production possibilities schedule) exceeds the marginal rate ofsubstitution (measured by the slope of its community indifference curve) by thelargest possible amount.T F 5. A nation benefits from international trade if it can achieve a higher indifference curve than it can in autarky.T F 6. A nation realizes maximum gains from trade at the point where the international terms-of-trade line is tangent to its community indifference curve.T F 7. The Ricardian theory of comparative advantage could fully explain the distribution of the gains from trade among trading partners.T F 8. Because the Ricardian theory of comparative advantage was based only on a nation’s demand conditions, it could not fully explain the distribution of the gains from tradeamong trading partners.T F 9. Because th e Ricardian theory of comparative advantage was based only on a nation’s supply conditions, it could only determine the outer limits within which theequilibrium terms of trade would lie.T F 10. The domestic cost ratios of nations set the outer limits to the equilibrium terms of trade.T F 11. Mutually beneficial trade for two countries occurs if the equilibrium terms of trade lies between the two countries’ domestic cost ratios.T F 12. Assume that the United States and Canada engage in trade. If the international terms of trade coincides with the U.S. cost ratio, the United States realizes all of the gainsfrom trade with Canada.T F 13. Assume that the United States and Canada engage in trade. If the international terms of trade coincides with the Canadian cost ratio, the United States realizes all of thegains from trade with Canada.T F 14. If the international terms of trade lies beneath (inside) the Mexican cost ratio, Mexico is worse off with trade than without trade.T F 15. Although J. S. Mill recognized that the region of mutually beneficial trade is bounded by the cost ratios of two countries, it was not until David Ricardo developed thetheory of reciprocal demand that the equilibrium terms of trade could be determined.CHAPTER 4TRADE MODEL EXTENSIONS ANDAPPLICATIONSMULTIPLE-CHOICE QUESTIONS1. Which of the following suggests that a nation will export the commodity in the production ofwhich a great deal of its relatively abundant and cheap factor is used?a. The Linder theoryb. The product life cycle theoryc. The MacDougall theoryd. The Heckscher-Ohlin theory2. According to Staffan Linder, trade between two countries tends to be most pronounced when thecountries: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 same3. Which of the following is a long-run theory, emphasizing changes in the trading position of anation over a number of years?a. Theory of factor endowmentsb. Comparative advantage theoryc. Theory of the product cycled. Overlapping demand theory4. The Leontief paradox questioned the validity of the theory of:a. Comparative advantageb. Factor endowmentsc. Overlapping demandsd. Absolute advantage5. 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 machinery6. Classical trade theory emphasized which of the following as an underlying explanation ofthe basis for trade?a. Productivities of labor inputsb. Tastes and preferences among nationsc. Changes in technologies over timed. Quantities of economic resources7. Concerning the influence that transportation costs have on the location of industry, whichof the following industries has generally attempted to locate production facilities close to resource supplies?a. Autosb. Steelc. Soft drinksd. Extremely valuable electronics goods8. Assume that Country A, in the absence of trade, finds itself relatively abundant in laborand relatively scarce in land. The factor endowment theory reasons that with free trade, the internal distribution of national income in Country A will change in favor of:a. Laborb. Landc. Both labor and landd. Neither labor nor land9. When considering the effects of transportation costs, the conclusions of our trade modelmust 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 trade10. Most economists maintain that the major factor underlying wage stagnation in the UnitedStates in the 1990s has been:a. Import competitionb. Technological changec. Rising real value of the minimum waged. Increasing union membership11. Assume the cost of transporting autos from Japan to Canada exceeds the pretrade price differencefor autos between Japan and Canada. Trade in autos is:a. Impossibleb. Possiblec. Highly profitabled. Moderately profitable12. Eli Heckscher and Bertil Ohlin are associated with the theory of comparative advantage thatstresses differences in:a. Income levels among countriesb. Tastes and preferences among countriesc. Resource endowments among countriesd. Labor productivities among countries13. Hong Kong is relatively abundant in labor, while Canada is relatively abundant in capital. In bothcountries the production of shirts is relatively more labor intensive than the production ofcomputers. According to the factor endowment theory, Hong Kong will have a (an):a. Absolute advantage in the production of shirts and computersb. Absolute advantage in the production of computersc. Comparative advantage in the production of shirtsd. Comparative advantage in the production of computers14. If Japanese workers receive lower wages in the production of autos than do American workers:a. Japan will have a comparative advantage in the production of autosb. Japan will have an absolute advantage in the production of autosc. Production costs will be lower in Japan than in the U.S.d. Production costs could be lower in the U.S. if American labor productivity is higher thanthe Japanese。