国际贸易复习资料

Multiple Choice Questions 1. Sovereign nations: A．Are subject to laws passed by the United Nations. B． Must be concerned with the interests of foreigners when developing economic policy. C．Often ignore the interests of foreigners. D．Must coordinate their monetary policy with the World Bank. ANSWER: C 2. Outsourcing of services to foreign countries: A. Cost the U.S. economy an estimated 5 million jobs by 2005. B. Mainly impacts workers in business services such as data entry and software development. C. Is a serious concern for workers in high-wage manufacturing industries. D. Will have a serious negative impact on all service sector jobs in the United States. ANSWER: B 3. Globalization: A. Is the process of intensifying the connections between national economies through international trade, foreign direct investments by multinational firms, and international financial investments. B. Has been proven to worsen working conditions and increase poverty in poor countries. C. Requires governments to weaken labor and environmental regulations in order to remain competitive. D. Is coordinated by the International Labor Organization to ensure respect for the four core labor standards. ANSWER: A 4. The long-run solution to eliminating child labor is to: A. Boycott companies whose products are produced using child labor. B. Impose trade sanctions against countries that violate child labor standards. C. Stimulate economic growth and rising incomes in poor countries. D. There is no long-run solution as demand for cheap labor will always exist. ANSWER: C 5. In early 2002, the national moneys of 12 European countries disappeared. They were replaced by one new money, the euro. The benefits to those countries included all of the following EXCEPT: A．It is convenient – there is no need to change money when crossing national borders. B． It is less risky – there is no need to worry about the changing value of one country’s money relative to another country’s money. C．It is economical – travel and trade are made easier due to a decrease in transaction costs. D．It strengthens domestic policy – using an international money gives a country’s Central Bank a greater ability to influence national prices, production, and jobs. ANSWER: D 6. The Chinese government’s intervention in the foreign exchange market - buying U.S. dollars and selling yuan – had the effect of: A. Weakening the U.S dollar and increasing the U.S. trade deficit with China. B. Strengthening the U.S dollar and increasing the U.S. trade deficit with China. C. Strengthening the yuan and increasing the U.S. trade deficit with China. D. Strengthening the yuan and decreasing the U.S. trade deficit with China. ANSWER: B 7. On July 21st, 2005, the Chinese government changed the value of the yuan from 8.28 yuan per U.S. dollar to 8.11 yuan per U.S. dollar. This implies a __________ dollar and a __________ yuan. A. Weaker; weaker B. Weaker; stronger C. Stronger; stronger D. Stronger; weaker ANSWER: B 8. If a 1% increase in the price of DVD’s leads to a 3% reduction in the sales of DVD’s, we can conclude that: A. DVD’s are normal goods. B. DVD’s are inferior goods. C. Demand for DVD’s is elastic. D. Demand for DVD’s is inelastic. ANSWER: C 9. An increase in demand will lead to a higher increase in price; the: A. Greater is the price elasticity of demand. B. Greater is the population. C. Flatter is the supply curve. D. More inelastic is supply. ANSWER: D 10. Producer surplus is: A. Found on a graph as the area under the equilibrium price and above the supply curve. B. The net gain in economic well-being associated with producing and selling the equilibrium quantity of a good. C. Used to measure the impact of a change in price on the economic well-being of producers. D. All of the above. ANSWER: D 11. Based on mercantilist thinking, governments should: A. Subsidize and encourage imports. B. Subsidize and encourage exports. C. Allow for free trade unencumbered by government regulations and restrictions. D. Both (a) and (b). ANSWER: B 12. The author of the Wealth of Nations was: A. David Ricardo. B. Paul Samuelson. C. Adam Smith. D. Karl Marx. ANSWER: C 13. When Adam Smith presented his theory of absolute advantage, he thought that all value was measured in terms of the amount of __________ used in the production of the good. A. Land B. Labor