国际经济学英文版(第八版)章节练习第一章.doc

International Economics, 8e (Krugman) Chapter 1 Introduction1.1 What Is International Economics About?1) Historians of economic thought often describe _ written by _ and published in _ as the first real exposition of an economic model. A) ”Of the Balance of Trade,” David Hume, 1776 B) ”Wealth of Nations,” David Hume, 1758 C) ”Wealth of Nations,” Adam Smith, 1758 D) ”Wealth of Nations,” Adam Smith, 1776 E) ”Of the Balance of Trade,” David Hume, 1758 Answer: E2) 2)Ancient theories of international economics from the 18th and 19th Centuries are A) not relevant to current policy analysis. B) are only of moderate relevance in todays modern international economy. C) are highly relevant in todays modern international economy. D) are the only theories that actually relevant to modern international economy. E) are not well understood by modern mathematically oriented theorists. Answer: C3) An important insight of international trade theory is that when countries exchange goods and services one with the other it A) 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. Answer: B4) If there are large disparities in wage levels between countries, then A) 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. Answer: D5) Who sells what to whom A) has been a major preoccupation of international economics. B) is not a valid concern of international economics. C) is not considered important for government foreign trade policy since such decisions are made in the private competitive market. D) is determined by political rather than economic factors. E) None of the above Answer: A6) The insight that patterns of trade are primarily determined by international differences in labor productivity was first proposed by A) Adam Smith. B) David Hume. C) David Ricardo. D) Eli Heckscher. E) Lerner and Samuelson. Answer: C7) The euro, a common currency for most of the nations of Western Europe, was introduced A) before 1900. B) before 1990. C) before 2000. D) in order to snub the pride of the U.S. E) None of the above. Answer: C8) For the 50 years preceding 1994, international trade policies have been governed A) by the World Trade Organization. B) by the International Monetary Fund. C) by the World. D) by an international treaty known as the General Agreement on Tariffs and Trade (GATT). E) None of the above. Answer: D9) The international capital market is A) the place where you can rent earth moving equipment anywhere in the world. B) a set of arrangements by which individuals and firms exchange money now for promises to pay in the future. C) the arrangement where banks build up their capital by borrowing from the Central Bank. D) the place where emerging economies accept capital invested by banks. E) None of the above. Answer: B10) Since 1994, trade rules have been enforced by A) the WTO. B) the G10. C) the GATT. D) The U.S. Congress. E) None of the above. Answer: A11) Cost-benefit analysis of international trade A) is basically useless. B) is empirically intractable. C) focuses attention primarily on conflicts of interest within countries. D) focuses attention on conflicts of interests between countries. E) None of the above. Answer: C12) An improvement in a countrys balance of payments means a decrease in its balance of payments deficit, or an increase in its surplus. In fact we know that a surplus in a balance of payments A) is good. B) is usually good. C) is probably good. D) may be considered bad. E) is always bad. Answer: D 13) The GATT was A) an international treaty. B) an international U.N. agency. C) an international IMF agency. D) a U.S. government agency. E) a collection of tariffs. Answer: A 14) International economics can be divided into two broad sub-fields A) macro and micro. B) developed and less developed. C) monetary and barter. D) international trade and international money. E) static and dynamic. Answer: DInternational Economics, 8e (Krugman) Chapter 2 World Trade: An Overview2.1 Who Trades with Whom?1) What percent of all world production of goods and services is exported to other countries? A) 10% B) 30% C) 50% D) 100% E) None of the above. Answer: B2) The gravity model offers a logical explanation for the fact that A) trade between Asia and the U.S. has grown faster than NAFTA trade. B) trade in services has grown faster than trade in goods. C) trade in manufactures has grown faster than in agricultural products. D) Intra-European Union trade exceeds International Trade of the European Union. E) None of the above. Answer: D3) According to the gravity model, a characteristic that tends to affect the probability of trade existing between any two countries is A) their cultural affinity. B) the average weight/value of their traded goods. C) their colonial-historical ties. D) the distance between them. E) the number of varieties produced on the average by their industries. Answer: D 4) Why does the gravity model work? A) Large economies became large because they were engaged in international trade. B) Large economies have relatively large incomes, and hence spend more on government promotion of trade and investment. C) Large economies have relatively larger areas which raises the probability that a productive activity will take place within the borders of that country. D) Large economies tend to have large incomes and tend to spend more on imports. E) None of the above. Answer: D5) The two neighbors of the United States do a lot more trade with the United States than European economies of equal size. A) This contradicts predictions from gravity models. B) This is consistent with predictions from gravity models. C) This is relevant to any inferences that may be drawn from gravity models. D) This is because these neighboring countries have exceptionally large GDPs. E) None of the above. Answer: B6) Since World War II (the early 1950s), the proportion of most countries production being used in some other country A) remained constant. B) increased. C) decreased. D) fluctuated widely with no clear trend. E) both A and D above. Answer: B 7) Since World War II, the relative importance of raw materials, including oil, in total world trade A) remained constant. B) increased. C) decreased. D) fluctuated widely with no clear trend E) both A and D above. Answer: C 8) In the current Post-Industrial economy, international trade in services (including banking and financial services) A) dominates world trade. B) does not exist. C) is relatively small. D) is relatively stagnant. E) None of the above. Answer: C 9) In the pre-World War I period, the U.S. exported primarily A) manufactured goods. B) services. C) primary products including agricultural. D) technology intensive products. E) None of the above. Answer: C 10) In the pre-World War I period, the United Kingdom exported primarily A) manufactured goods. B) services. C) primary products including agricultural. D) technology intensive products. E) None of the above. Answer: A 11) In the present, most of the exports from China are in A) manufactured goods. B) services. C) primary products including agricultural. D) technology intensive products. E) None of the above. Answer: A International Economics, 8e (Krugman) Chapter 3 Labor Productivity and Comparative Advantage: The Ricardian Model 1) Trade between two countries can benefit both countries if A) 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 exported goods. E) Both C and D. Answer: A 2) 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 requirements A) one B) two C) three D) four E) five Answer: D 3) A country engaging in trade according to the principles of comparative advantage gains from trade because it A) is producing exports indirectly more efficiently than it could alternatively. B) is producing imports indirectly more efficiently than it could domestically. C) is producing exports using fewer labor units. D) is producing imports indirectly using fewer labor units. E) None of the above. Answer: B 4) Given the information in the table above, if it is ascertained that Foreign uses prison-slave labor to produce its exports, 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. Answer: A 5) Given the information in the table above, if the Home economy suffered a meltdown, and the Unit Labor Requirements doubled to 30 for cloth and 60 for widgets 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. Answer: A 6) The earliest statement of the principle of comparative advantage is associated with A) David Hume. B) David Ricardo. C) Adam Smith. D) Eli Heckscher. E) Bertil Ohlin. Answer: B 7) The Gains from Trade associated with the principle of Comparative Advantage depends on A) the trade partners must differ in technology or tastes. B) there can be no more goods traded than the number of trade partners. C) there may be no more trade partners than goods traded. D) All of the above. E) None of the above. Answer: A 8) The Ricardian model demonstrates that A) trade between two countries will benefit both countries. B) trade between two countries may benefit both regardless of which good each exports. C) trade between two countries may benefit both if each exports the product in which it has a comparative advantage. D) trade between two countries may benefit one but harm the other. E) None of the above. Answer: C 9) Given the information in the table above A) 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. Answer: B 10) Given the information in the table above, 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. Answer: A 11) 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. E) None of the above. Answer: B 12) A nation engaging in trade according to the Ricardian model will find its consumption bundle A) inside its production possibilities frontier. B) on its production possibilities frontier. C) outside its production possibilities frontier. D) inside its trade-partners production possibilities frontier. E) on its trade-partners production possibilities frontier. Answer: C13) In the Ricardian model, if a countrys trade is restricted, this will cause all except which? A) limit specialization and the division of labor B) reduce the volume of trade and the gains from trade C) cause nations to produce inside their production possibilities curves D) may result in a country producing some of the product of its comparative disadvantage E) None of the above. Answer: C 14) If the world terms of trade for a country are somewhere between the domestic cost ratio of H and that of F, then A) 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. Answer: B15) According to Ricardo, a country will have a comparative advantage in the product in which its A) labor productivity is relatively low. B) labor productivity is relatively high. C) labor mobility is relatively low. D) labor mobility is relatively high. E) None of the above. Answer: B 16) 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 if A) U.S. labor productivity equaled 40 units per hour and Japans 15 units per hour. B) U.S. productivity equaled 30 units per hour whereas Japans was 20. C) U.S. labor productivity equaled 20 and Japans 30. D) U.S. labor productivity equaled 15 and Japans 25 units per hour. E) None of the above. Answer: A 17)Let us define the real wage as the purchasing power of one hour of labor. In the Ricardian 2X2 model, if two countries under autarky engage in trade then A) the real wage will not be affected since this is a financial variable. B) the real wage will increase only if a country attains full specialization. C) the real wage will increase in one country only if it decreases in the other. D) the real wage will rise in both countries. E) None of the above. Answer: D 18) In a two country and two product Ricardian model, a small country is likely to benefit more than the large country because A) the large country will wield greater political power, and hence will not yield to market signals. B) the small country is less likely to trade at price equal or close to its autarkic (domestic) relative prices. C) the small country is more likely to fully specialize. D) the small country is less likely to fully specialize. E) None of the above. Answer: B19) An examination of the Ricardian model of comparative advantage yields the clear result that trade is (potentially) beneficial for each of the two trading partners since it allows for an expanded consumption choice for each. However, for the world as a whole the expansion of production of one product must involve a decrease in the availability of the other, so that it is not clear that trade is 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 for the world as a whole? Explain. Answer: If we were to combine the production possibility frontiers of the two countries to create a single world production possibility frontier, then it is true that any change in production points (from autarky to specialization with trade) would involve a tradeoff of one good for another from the worlds perspective. In other words, the new solution cannot possibly involve the production of more of both goods. However, since we know that each country is better off at the new solution, it must be true that the original points were not on the trade contract curve between the two countries, and it was in fact possible to make some people better off without making others worse off, so that the new solution does indeed represent a welfare improvement from the worlds perspective. 20） Given the information in the table above. What is the opportunity cost of Cloth in terms of Widgets in Foreign? Answer: One half a widget.21) Given the information in the table above. If these two countries trade these two goods in the context of the Ricardian model of comparative advantage, then what is the lower limit of the world equilibrium price of widgets? Answer: 1/2 Cloths.22) Given the information in the table above. If these two countries trade these two goods with each other in context of the Ricardian model of comparative advantage, what is the lower limit for the price of cloth? Answer: One half a widget.23) Given the information in the table above. What is the opportunity cost of cloth in terms of Widgets in Foreign? Answer: 2 widgets.24) If a production possibilities frontier is bowed out (c