国际经济学试题

CHAPTER 1 THE INTERNATIONAL ECONOMY MULTIPLE-CHOICE QUESTIONS 1. A primary reason why nations conduct international trade is because: 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.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: 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: 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: a.The introduction of new products b.Product design and quality c.Product price d.All of the above 6. The movement to free international trade is most likely to generate short-term unemployment in which industries? 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: 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: 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: 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.Canada b.Germany c.Mexico d.United Kingdom 11. Increased foreign competition tends to: 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. _ 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 13. A firms _, 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: 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: 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 16. International trade tends to cause welfare losses to at least some groups in a country: a.The less mobile the countrys resources b.The more mobile the countrys resources c.The lower the countrys initial living standard d.The higher the countrys initial living standard 17. For a nation to maximize its productivity in a global economy: a.Only imports are necessary b.Only exports are necessary c.Both imports and exports are necessary d.Neither imports nor exports are necessary 18. A feasible effect of international trade is that: a.A monopoly in the home market becomes an oligopoly in the world market b.An oligopoly in the home market becomes a monopoly in the world market c.A purely competitive firm becomes an oligopolist d.A purely competitive firm becomes a monopolist 19. International trade in goods and services tends to: a.Increase all domestic costs and prices b.Keep all domestic costs and prices at the same level c.Lessen the amount of competition facing home manufacturers d.Increase the amount of competition facing home manufacturers 20. The real income of domestic producers and consumers can be increased by: a.Technological progress, but not international trade b.International trade, but not technological progress c.Technological progress and international trade d.Neither technological progress nor international trade 21. In the United States, automobiles are: a.Imported, but not exported b.Exported, but not imported c.Imported and exported d.Neither exported nor imported 22. Technological improvements are similar to international trade since they both: a.Provide benefits for all producers and consumers b.Increase the nations aggregate income c.Reduce unemployment for all domestic workers d.Ensure that industries can operate at less than full capacity 23. A sudden shift from import tariffs to free trade may induce short-term unemployment in: a.Import-competing industries b.Industries that are only exporters c.Industries that sell domestically as well as export d.Industries that neither import nor export 24. Recent empirical studies indicate that productivity performance in industries is: a.Directly related to globalization of industries b.Inversely related to globalization of industries c.Not related to globalization of industries d.Any of the above 25. Empirical research indicates that _ best enhances productivity gains for firms and industries. a.Local competition b.Regional competition c.Global competition d.No competition 26. By the mid-1990s, _ banks had become the worlds largest in terms of total assets. a.British b.German c.Japanese d.American 27. A reduced share of the world export market for the United States would be attributed to: a.Decreased productivity in U.S. manufacturing b.High incomes of American households c.Relatively low interest rates in the United States d.High levels of investment by American corporations 28. The dominant trading nation in the world market following World War II was: a.United Kingdom b.Germany c.South Korea d.United States 29. A closed economy is one in which: a.Imports exactly equal exports, so that trade is balanced b.Domestic firms invest in industries overseas c.The home economy is isolated from foreign trade d.Saving exactly equals investment at full employment 30. Relative to countries with low ratios of exports to gross domestic product, countries having high export to gross domestic product ratios are _ vulnerable to changes in the world market. a.Less b.More c.Equally d.Any of the above 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 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 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 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 16. Concerning international trade restrictions, which of the following is false? Trade restrictions: 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 17. If a production possibilities curve is bowed out (i.e., concave) in appearance, production occurs under conditions of: a.Constant opportunity costs b.Increasing opportunity costs c.Decreasing opportunity costs d.Zero opportunity costs 18. Increasing opportunity costs suggest that: a.Resources are not perfectly shiftable between the production of two goods b.Resources are fully shiftable between the production of two goods c.A countrys production possibilities curve appears as a straight line d.A countrys production possibilities curve is bowed inward (i.e., convex) in appearance 19. The trading-triangle concept is used to indicate a nations: a.Exports, marginal rate of transformation, terms of trade b.Imports, terms of trade, marginal rate of transformation c.Marginal rate of transformation, imports, exports d.Terms of trade, exports, imports 20. Assuming increasing cost conditions, trade between two countries would not be likely if they have: a.Identical demand conditions but different supply conditions b.Identical supply conditions but different demand conditions c.Different supply conditions and different demand conditions d.Identical demand conditions and identical supply conditions Use the data in Table 2.2 to answer Questions 21 through 26. Table 2.2. Output Possibilities for South Korea and Japan Output per Worker per Day CountryTons of SteelVCRs South Korea8040 Japan2020 21. Refer to Table 2.2. The opportunity cost of one VCR in Japan is: a.1 ton of steel b.2 tons of steel c.3 tons of steel d.4 tons of steel 22. Refer to Table 2.2. The opportunity cost of one VCR in South Korea is: a. ton of steel b.1 ton of steel c.1 tons of steel d.2 tons of steel 23. Refer to Table 2.2. According to the principle of absolute advantage, Japan should: a.Export steel b.Export VCRs c.Export steel and VCRs d.None of the above; there is no basis for gainful trade 24. Refer to Table 2.2. According to the principle of comparative advantage: a.South Korea should export steel b.South Korea should export steel and VCRs c.Japan should export steel d.Japan should export steel and VCRs 25. Refer to Table 2.2. With international trade, what would be the maximum amount of steel that South Korea would be willing to export to Japan in exchange for each VCR? a. ton of steel b.1 ton of steel c.1 tons of steel d.2 tons of steel 26. Refer to Table 2.2. With international trade, what would be the maximum number of VCRs that Japan would be willing to export to South Korea in exchange for each ton of steel? a.1 VCR b.2 VCRs c.3 VCRs d.4 VCRs 27. The earliest statement of the principle of comparative advantage is associated with: a.Adam Smith b.David Ricardo c.Eli Heckscher d.Bertil Ohlin 28. If Hong Kong and Taiwan had identical labor costs but were subject to increasing costs of production: a.Trade would depend on differences in demand conditions b.Trade would depend on economies of large-scale production c.Trade would depend on the use of different currencies d.There would be no basis for gainful trade 29. If the international terms of trade settle at a level that is between each countrys opportunity cost: a.There is no basis for gainful trade for either country b.Both countries gain from trade c.Only one country gains from trade d.One country gains and the other country loses from trade 30. International trade is based on the notion that: a.Different currencies are an obstacle to international trade b.Goods are more mobile internationally than are resources c.Resources are more mobile internationally than are goods d.A countrys exports should always exceed its imports 31. Refer to Figure 2.1. The relative cost of steel in terms of aluminum is: a.4.0 tons b.2.0 tons c.0.5 tons d.0.25 tons Figure 2.1. Production Possibilities Schedule 32. Refer to Figure 2.1. The relative cost of aluminum in terms of steel is: a.4.0 tons b.2.0 tons c.0.5 tons d.0.25 tons 33. Refer to Figure 2.1. If the relative cost of steel were to rise, then the production possibilities schedule would: a.Become steeper b.Become flatter c.Shift inward in a parallel manner d.Shift outward in a parallel manner 34. Refer to Figure 2.1. If the relative cost of aluminum were to rise, then the production possibilities schedule would: a.Become steeper b.Become flatter c.Shift inward in a parallel manner d.Shift outward in a parallel manner 35. When a nation achieves autarky equilibrium: a.Input price equals final product price b.Labor productivity equals the wage rate c.Imports equal exports d.Production equals consumption 36. When a nation is in autarky and maximizes its living standard, its consumption and production points are: a.Along the production possibilities schedule b.Above the production possibilities schedule c.Beneath the production possibilities schedule d.Any of the above 37. If Canada experiences increasing opportunity costs, its supply schedule of steel will be: a.Downward-sloping b.Upward-sloping c.Horizontal d.Vertical 38. If Canada experiences constant opportunity costs, its supply schedule of steel will be: a.Downward-sloping b.Upward-sloping c.Horizontal d.Vertical 39. The gains from international trade increase as: a.A nation consumes inside of its production possibilities schedule b.A nation consumes along its production possibilities schedule c.The international terms of trade rises above the nations autarky price d.The international terms of trade approaches the nations autarky price 40. In a two-country, two-product world, the statement “Japan enjoys a comparative advantage over France in steel relative to bicycles” is equivalent to: a.France having a comparative advantage over Japan in bicycles relative to steel b.France having a comparative disadvantage against Japan in bicycles and steel c.Japan having