哈伯德英文版微观经济学练习c08.doc

Microeconomics - Testbank 1 (Hubbard/OBrien)Chapter 8 Comparative Advantage and the Gains from International Trade 1) If a nation has an absolute advantage in producing a good or service, this means that: A) no other nation can produce the good. B) the nation has the lowest opportunity cost to produce that good. C) using the same amount of resources, the nation can produce more of that good than any other nation. D) all of the above. 2) If a nation has a comparative advantage in producing a good or service, this means that: A) using the same amount of resources, this nation can produce more of the good than any other nation. B) using the same amount of resources, this nation can produce the good at a lower opportunity cost than any other nation. C) the nation is the only possible producer of the good in the world. D) the nation has a monopoly in the production of the good. 3) If nation A can produce 20 power plants and 16 ships while nation B can produce 18 power plants and 12 ships, then: A) A has an absolute advantage in producing both power plants and ships. B) B has an absolute advantage in producing both power plants and ships. C) A has an absolute advantage in producing power plants while B has an absolute advantage in producing ships. D) B has an absolute advantage in producing power plants while A has an absolute advantage in producing ships. 4) If nation A can produce 20 power plants and 16 ships, while nation B can produce 18power plants and 12 ships, then As opportunity cost to produce a unit of power plants is: A) 16 ships. B) 8 ships. C) 0.8 ships. D) impossible to determine without more information. 5) If nation A can produce 20 power plants and 16 ships while nation B can produce 18power plants and 12 ships, then As opportunity cost to produce a ship is: A) 0.8 power plants. B) 1.25 power plants. C) 20 power plants. D) impossible to determine without more information. 6) If nation A can produce 20 power plants and 16 ships while nation B can produce 18 power plants and 12 ships, then Bs opportunity cost to produce a power plant is: A) 0.666 ship. B) 1.5 ships. C) 12 ships. D) impossible to determine without more information. 7) If nation A can produce 20 power plants and 16 ships while nation B can produce 18 power plants and 12 ships, then according to comparative advantage: A) A should produce power plants and B should produce ships. B) B should produce power plants and A should produce ships. C) A should produce both power plants and ships. D) B should produce both power plants and ships. 8) World output of goods and services can be maximized: A) by having every country produce some of every good. B) by having every nation produce the good it has an absolute advantage in producing. C) by having every nation produce the good it has a comparative advantage in producing. D) by letting the United Nations decide who produces what. 9) Outsourcing is: A) importing a manufactured good made by a foreign firm. B) exporting a good or service to buyers in other countries. C) when workers in a foreign country are hired by a domestic firm to produce something sold domestically. D) when domestic workers are hired by a domestic firm to produce something sold exclusively in other countries. 10) Firms outsource: A) to obtain a higher quality product regardless of the cost. B) to escape tariffs. C) because costs of production are lower if the firm uses resource in another country. D) because domestic resources can not do the job. Refer to Figure 8.1 for the questions below.Figure 8.1 11) In figure 8.1 without trade the people of the country consume and produce: A) Q1. B) Q2. C) Q3. D) none of the above. 12) In figure 8.1 with free trade the people of the country consume: A) Q1. B) Q2. C) Q3. D) none of the above. 13) In figure 8.1 with free trade the people of the country produce: A) Q1. B) Q2. C) Q3. D) none of the above. 14) In figure 8.1 with free trade consumer gain area: A) B. B) C. C) C+E+F. D) C+G. 15) In figure 8.1 with free trade domestic producers: A) gain C. B) lose C. C) gain E+F. D) lose E+F. 16) In figure 8.1 with free trade the people of the country: A) export Q3-Q1. B) import Q3-Q1. C) export Q2-Q1. D) import Q2-Q1. 17) In figure 8.1 the gains from free trade are: A) B+C+E+F. B) B+C+G. C) E+F. D) H+I+J+K. 18) A nation that does not trade with other nations: A) maximizes the number of jobs in its economy. B) will have lower prices than other countries. C) will have its citizens consuming at a lower standard of living than if it traded. D) will have as large a Gross Domestic Product as is possible. 19) Among the losers with free trade are: A) consumers because they pay a higher price for imported goods. B) resource owners in an import-competing industry because the industry produces less. C) government because national income and tax revenues fall. D) all of the above. 20) Among those who benefit from free trade are: A) the people of a country as a whole. B) each firm in the country. C) each person in the country. D) all of the above. 21) Among the sources of comparative advantage is: A) a higher level of technology relative to other nations in producing a particular good. B) a favorable natural resource and/ or climate. C) a relative abundance of labor and capital. D) all of the above. 22) The impact of a tariff on an imported good is: A) it keeps the good from being imported. B) it reduces the amount of imports. C) it sets the maximum number of a good that is allowed into the economy. D) it increases the amount of imports. Refer to Figure 8.2 for the questions below.Figure 8.2 23) In figure 8.2, with free trade domestic production is: A) Q1. B) Q2. C) Q3. D) Q4. 24) In figure 8.2, with the tariff domestic production is: A) Q1. B) Q2. C) Q3. D) Q4. 25) In figure 8.2, with the tariff domestic consumption is: A) Q1. B) Q2. C) Q3. D) Q4. 26) In figure 8.2, with the tariff imports are: A) Q4-Q1. B) Q4-Q3. C) Q3-Q2. D) Q2-Q1. 27) In figure 8.2, with the tariff government revenue is: A) C. B) E+G. C) F. D) A+B. 28) In figure 8.2, with the tariff domestic producers gain: A) E+G. B) C+E+F+G. C) C. D) A+B. 29) In figure 8.2, with the tariff domestic consumers lose: A) E+G. B) C+E+F+G. C) C. D) A+B. 30) In figure 8.2, the deadweight loss due to the tariff is: A) C+F. B) E+G. C) B+F. D) I+J+K+L+M. 31) The winner with a tariff on a good not produced domestically is: A) domestic consumers. B) foreign producers of the good affected. C) the government that imposes the tariff. D) all of the above. 32) A tariff leads to: A) a higher domestic price. B) more revenue for the tariff imposing government. C) a domestic deadweight loss. D) all of the above. 33) An import quota sets: A) the tax on an imported good. B) the maximum number of units of a good that can be imported. C) the quality of an imported good. D) who is allowed to buy an imported good. 34) With free trade and no transportation costs the domestic price of an imported good: A) remains at the domestic price. B) rises to the world price. C) falls to the world price. D) is set by the domestic government. 35) Among the losers with an import quota are: A) domestic producers of the good. B) the domestic government. C) domestic consumers of the good. D) All of these groups gain. 36) Protection: A) eliminates the gains from trade. B) reduces the gains from trade. C) reduces domestic production of the protected good. D) reduces government interference in the market. 37) Globalization is: A) moves to unify the world under a single government. B) an effort to produce economic growth by high tariffs. C) the process of countries becoming more open to foreign trade and investment. D) the process of the world adopting a single currency. 38) After the North American Free Trade Agreement went into effect: A) wages in the United States fell. B) wages in Mexico converged with wages in the United States. C) wages in Canada and the United States fell. D) wages in both the United States and Mexico increased and Mexican wages did not come closer to U.S. wages. 39) Dumping is: A) foreign producers giving their products away free to gain customers. B) giving up free trade, in essence, dumping it. C) selling a product in another country at a price below the cost of production. D) the loss associated with a tariff. 40) An import quota: A) raises domestic price for the product. B) increased domestic production of the product. C) reduces the quantity of the product imported. D) all of the above. 41) With trade between two countries: A) the most powerful nation will benefit the most and the other will not benefit. B) terms of trade must be at the same ratio as the exchange rate between the two currencies. C) both nations must benefit. D) there will always be one gaining nation and one losing nation. 42) Free international trade: A) causes inflation in all trading countries. B) causes unemployment in all industries in all trading countries. C) makes up for the immobility of resources like natural resources. D) causes the losses of those who lose to be greater than the gains of those who gain. 43) A multinational firm is: A) a firm engaged in either importation