国际经济与贸易题目(英语版).doc

0 CHAPTER 1 THE INTERNATIONAL ECONOMY MULTIPLE-CHOICE QUESTIONS 1.A primary reason why nations conduct international trade is because:b a.Some nations prefer to produce one thing while others produce other things b.Resources are not equally distributed among all trading nations c.Trade enhances opportunities to accumulate profits d.Interest rates are not identical in all trading nations 2.A main advantage of specialization results from:a a.Economies of large-scale production b.The specializing country behaving as a monopoly c.Smaller production runs resulting in lower unit costs d.High wages paid to foreign workers 3.International trade in goods and services is sometimes used as a substitute for all of the following except:d a.International movements of capital b.International movements of labor c.Domestic production of the same goods and services d.Domestic production of different goods and services 4.If a nation has an open economy, it means that the nation:d a.Allows private ownership of capital b.Has flexible exchange rates c.Has fixed exchange rates d.Conducts trade with other countries 5.International trade forces domestic firms to become more competitive in terms of:d a.The introduction of new products b.Product design and quality c.Product price d.All of the above Chapter 1: The International Economy1 6.The movement to free international trade is most likely to generate short-term unemployment in which industries?b a.Industries in which there are neither imports nor exports b.Import-competing industries c.Industries that sell to domestic and foreign buyers d.Industries that sell to only foreign buyers 7.International trade is based on the idea that:d a.Exports should exceed imports b.Imports should exceed exports c.Resources are more mobile internationally than are goods d.Resources are less mobile internationally than are goods 8.Arguments for free trade are sometimes disregarded by politicians because:b a.Maximizing domestic efficiency is not considered important b.Maximizing consumer welfare may not be a chief priority c.There exist sound economic reasons for keeping ones economy isolated from other economies d.Economists tend to favor highly protected domestic markets 9.How much physical output a worker producers in an hours work depends on:d a.The workers motivation and skill b.The technology, plant, and equipment in use c.How easy the product is to manufacture d.All of the above 10.The largest amount of trade with the United States in recent years has been conducted by:a a.Canada b.Germany c.Mexico d.United Kingdom 11.Increased foreign competition tends to:c a.Intensify inflationary pressures at home b.Induce falling output per worker-hour for domestic workers c.Place constraints on the wages of domestic workers d.Increase profits of domestic import-competing industries 12._a_ 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 other firms/industries. a.Competitiveness b.Protectionism c.Comparative advantage d.Absolute advantage 2Test Bank for International Economics, 9e 13.A firms _d_, relative to that of other firms, is generally regarded as the most important determinant of competitiveness. a.Income level b.Tastes and preferences c.Environmental regulation d.Productivity 14.Free traders maintain that an open economy is advantageous in that it provides all of the following except:d a.Increased competition for world producers b.A wider selection of products for consumers c.The utilization of the most efficient production methods d.Relatively high wage levels for all domestic workers 15.Recent pressures for protectionism in the United States have been motivated by all of the following except:b a.U.S. firms shipping component production overseas b.High profit levels for American corporations c.Sluggish rates of productivity growth in the United States d.High unemployment rates among American workers TRUE-FALSE QUESTIONS F1.The two most important trading partners of the United States are Canada and Mexico. F2.The United States exports a larger percentage of its gross domestic product than Japan, Germany, and Canada. T 3.Opening the economy to international trade tends to lessen inflationary pressures at home. T 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 of consumption choices. F5.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 relatively high cost. T6.Although free trade provides benefits for consumers, it is often argued that import protection should be provided to domestic producers of strategic goods and materials vital to the nations security. T 7.In the long run, competitiveness depends on an industrys natural resources, its stock of machinery and equipment, and the skill of its workers in creating goods that people want to buy. T 8.If a nation has an open economy, it means that the nation allows private ownership of capital. F9.Increased foreign competition tends to increase profits of domestic import-competing companies. Chapter 1: The International Economy3 F10.Restrictive trade policies have resulted in U.S. producers of minerals and metals supplying all of the U.S. consumers needs. ANSWERS Answers to Multiple-Choice Questions 1 .b 2.a 3.d 4.d 5.d 6.b 7.d 8.b 9.d 10.a 11.c 12.a 13.d 14.d 15.b Answers to True-False Questions 1.F 2.F 3.T 4.T 5.F 6.T 7.T 8.F 9.F 10.F CHAPTER 2 FOUNDATIONS OF MODERN TRADE THEORY MULTIPLE-CHOICE QUESTIONS 1.The mercantilists would have objected to: a.Export promotion policies initiated by the government b.The use of tariffs or quotas to restrict imports c.Trade policies designed to accumulate gold and other precious metals d.International trade based on open markets Chapter 1: The International Economy1 2.Unlike the mercantilists, Adam Smith maintained that: a.Trade benefits one nation only at the expense of another nation b.Government control of trade leads to maximum economic welfare c.All nations can gain from free international trade d.The worlds output of goods must remain constant over time 3.The trading principle formulated by Adam Smith maintained that: a.International prices are determined from the demand side of the market b.Differences in resource endowments determine comparative advantage c.Differences in income levels govern world trade patterns d.Absolute cost differences determine the immediate basis for trade 4.Unlike Adam Smith, David Ricardos trading principle emphasizes the: a.Demand side of the market b.Supply side of the market c.Role of comparative costs d.Role of absolute costs 5.When a nation requires fewer resources than another nation to produce a product, the nation is said to have a (an): a.Absolute advantage in the production of the product b.Comparative advantage in the production of the product c.Lower marginal rate of transformation for the product d.Lower opportunity cost of producing the product 6.According to the principle of comparative advantage, specialization and trade increase a nations total output since: a.Resources are directed to their highest productivity b.The output of the nations trading partner declines c.The nation can produce outside of its production possibilities curve d.The problem of unemployment is eliminated 7.In a two-product, two-country world, international trade can lead to increases in: a.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 both countries d.Consumer welfare in both countries, but not total production of both products 8.As a result of international trade, specialization in production tends to be: a.Complete with constant costscomplete with increasing costs b.Complete with constant costsincomplete with increasing costs c.Incomplete with constant costscomplete with increasing costs d.Incomplete with constant costsincomplete with increasing costs 2Test Bank for International Economics, 9e 9.A nation that gains from trade will find its consumption point being located: a.Inside its production possibilities curve b.Along its production possibilities curve c.Outside its production possibilities curve d.None of the above Using 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 Day CountryTons of SteelTelevisions United States 545 United Kingdom1020 10.Refer to Table 2.1. The United States has the absolute advantage in the production of: a.Steel b.Televisions c.Both steel and televisions d.Neither steel nor televisions 11.Refer to Table 2.1. The United Kingdom has a comparative advantage in the production of: a.Steel b.Televisions c.Both steel and televisions d.Neither steel nor televisions 12.Refer to Table 2.1. If trade opens up between the United States and the United Kingdom, American firms should specialize in producing: a.Steel b.Televisions c.Both steel and televisions d.Neither steel nor televisions 13.Refer to Table 2.1. The opportunity cost of producing one ton of steel in the United States is: a.3 televisions b.10 televisions c.20 televisions d.45 televisions Chapter 1: The International Economy3 14.Refer to Table 2.1. Mutually advantageous trade will occur between the United States and the United Kingdom so long as one ton of steel trades for: a.At least 1 television, but no more than 2 televisions b.At least 2 televisions, but no more than 3 televisions c.At least 3 televisions, but no more than 4 televisions d.At least 4 televisions, but no more than 5 televisions 15.Refer to Table 2.1. The United Kingdom gains most from trade if: a.1 ton of steel trades for 2 televisions b.1 ton of steel trades for 3 televisions c.2 tons of steel trade for 4 televisions d.2 tons of steel trade for 5 televisions TRUE-FALSE QUESTIONS TF1. According to the mercantilists, a nations welfare would improve if it maintained a surplus of exports over imports. TF2. The mercantilists maintained that a free-trade policy best enhances a nations welfare. TF3. The mercantilists contended that because one nations gains from trade come the expense of its trading partners, not all nations could simultaneously realize gains from trade. TF4. 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. TF5. The trade theories of Adam Smith and David Ricardo viewed the determination of competitiveness from the demand side of the market. TF6. 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 good while the other nation has an absolute cost advantage in the other good. TF7. 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. TF8. 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. TF9. 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 absolute disadvantage is greatest. TF10. 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 all markets. 4Test Bank for International Economics, 9e ANSWERS Answers to Multiple-Choice Questions 1.d 2.c 3.d 4.c 5.a 6.a 7.b 8.b 9.c 10.c 11.a 12.b 13.a 14.b 15.b Answers to True-False Questions 1.T 2.F 3.T 4.F 5.F 6.T 7.F 8.F 9.F 10.T Chapter 1: The International Economy1 CHAPTER 3 INTERNATIONAL EQUILIBRIUM MULTIPLE-CHOICE QUESTIONS 1.Which of the following is false concerning indifference curves? a.They illustrate how the nation ranks alternative consumption bundles b.Higher curves refer to more satisfaction c.They are negatively sloped, being bowed out away from the diagrams origin d.They reflect the tastes and preferences of a consumer 2.The amount of one good that is just sufficient to compensate the consumer for the loss of some amount of another good is referred to as: a.Absolute cost b.Comparative cost c.Marginal rate of transformation d.Marginal rate of substitution 3.In autarky, the equilibrium relative price of one product in terms of another product for a country is determined by the: a.Production possibilities curve b.Community indifference curve c.Community indifference map d.Production possibilities curve and community indifference map 4.In general, as we move downward along a countrys community indifference curve, the marginal rate of substitution of one product for another product: a.Increases b.Decreases c.Remains constant d.None of the above 5.The introduction of community indifference curves into our trading example focuses attention on the nations: a.Income level b.Resource prices c.Tastes and preferences d.Productivity level 2Test Bank for International Economics, 9e 6.Introducing indifference curves into our trade model permits us to determine: a.Where a nation chooses to locate along its production possibilities curve in autarky b.The precise location of a nations production possibilities curve c.Whether absolute cost or comparative cost conditions exist d.The currency price of one product in terms of another product 7.The marginal rate of substitution is measured by the absolute value of the slope of a (an): a.Production possibilities curve b.Indifference curve c.Production possibilities curve d.Demand curve 8.In the absence of trade, a nation is in equilibrium where a community indifference curve: a.Lies above its production possibilities curve b.Is tangent to its production possibilities curve c.Intersects its production possibilities curve d.Lies below its production possibilities curve 9.The use of indifference curves helps us determine the point: a.Along the terms-of-trade line a country will choose b.Where a country maximizes its resource productivity c.At which a country ceases to become competitive d.Where the marginal rate of transformation approaches zero 10.With trade, a country will maximize its satisfaction when it: a.Moves to the highest possible indifference curve b.Forces the marginal rate of substitution to its lowest possible value c.Consumes more of both goods than it does in autarky d.Finds its marginal rate of substitution exceeding its marginal rate of transformation 11.Trade between two nations would not be possible if they have: a.Identical community indifference curves but different production possibilities curves b.Identical production possibilities curves but different community indifference curves c.Different production possibilities curves and different community indifference curves d.Identical production possibilities curves and identical community indifference curves 12.Given a two-country and two-product world, the United States would enjoy all the attainable gains from free trade with Canada if it: a.Trades at the U.S. rate of transformation b.Trades at the Canadian rate of transformation c.Specializes completely in the production of both goods d.Specializes partially in the production of both goods 13.John Stuart Mills theory of reciprocal demand best applies when trading partners: a.Are of equal size and importance in the market b.Produce under increasing cost conditions c.Partially specialize in the production of commodities d.Have similar taste and preference levels Chapter 1: The International Economy3 14.The equilibrium prices and quantities established after trade are fully determinate if we know: a.The location of all countries indifference curves b.The shape of each countrys production possibilities curve c.The comparative costs of each trading partner d.The strength of world supply and demand for each good 15.“The equilibrium relative commodity price at which trade takes place is determined by the conditions of demand and supply for each commodity in both nations. Other things being equal, the nation with the more intense demand for the other nations exported good will gain less from trade than the nation with the less intense demand.” This statement was first proposed by: a.Alfred Marshall with offer curve analysis b.John Stuart Mill with the theory of reciprocal demand c.Adam Smith with the theory of absolute advantage d.David Ricardo with the theory of comparative advantage 16.Which of the following terms-of-trade concepts is calculated by dividing the change in a countrys export TRUE-FALSE QUESTIONS TF1. Modern trade theory recognizes that the pattern of world trade is governed by both demand conditions and supply conditions. TF2. A nation achieves autarky equilibrium at the point where its community indifference curve is tangent to its production possibilities schedule. TF3. In autarky equilibrium, a nation realizes the lowest possible level of satisfaction given the constraint of its production possibilities schedule. TF4. In autarky equilibrium, a nations marginal rate of transformation (measured by the slope of its production possibilities schedule) exceeds the marginal rate of substitution (measured by the slope of its community indifference curve) by the largest possible amount. TF5. A nation benefits from international trade if it can achieve a higher indifference curve than it can in autarky. TF6. A nation realizes maximum gains from trade at the point where the international terms-of-trade line is tangent to its community indifference curve. TF7. The Ricardian theory of comparative advantage could fully explain