国际经济学作业复习资料第五章

Chapter5TheStandardTradeModel(a)theamountofexportssoldbyacountry.(b)thepriceconditionsbargainedforininternationalmarkets.(c)thepriceofacountry’sexportsdividedbythepriceofitsimports.(d)thequantitiesofimportsreceivedinfreetrade.(e)Noneoftheabove.Answer:C2.Acountrycannotproduceamixofproductswithahighervaluethanwhere(a)theisovaluelineintersectstheproductionpossibilityfrontier.(b)theisovaluelineistangenttotheproductionpossibilityfrontier.(c)theisovaluelineisabovetheproductionpossibilityfrontier.(d)theisovaluelineisbelowtheproductionpossibilityfrontier.(e)theisovaluelineistangentwiththeindifferencecurve.Answer:Bofindividualsarerepresentedby(a)theproductionpossibilityfrontier.(b)theisovalueline.(c)theindifferencecurve.dtheproductionfunction.(e)Noneoftheabove.Answer:C4.IfPC/PFweretoincreaseintheinternationalmarketplace,then(a)allcountrieswouldbebetteroff.(b)thetermsoftradeofclothexportersimprove.(c)thetermsoftradeoffoodexportersimprove.(d)thetermsoftradeofallcountriesimprove.(e)NoneoftheaboveAnswer:BIfPC/PFweretoincrease,(a)theclothexporterwouldincreasethequantityofclothexports.(b)theclothexporterwouldincreasethequantityofclothproduced.(c)thefoodexporterwouldincreasethequantityoffoodexports.dBoth(a)and(c).(e)Noneoftheabove.Answer:BIfPC/PFweretoincrease,(a)worldrelativequantityofclothsuppliedanddemandedwouldincrease.(b)worldrelativequantityofclothsuppliedanddemandedwoulddecrease.(c)worldrelativequantityofclothsuppliedwouldincreases.(d)worldrelativequantityofclothdemandedwoulddecrease.(e)Noneoftheabove.Answer:Cntheproductionpossibilityfrontiershiftsoutrelativelymoreinonedirectionwehave(a)biasedgrowth.(b)unbiasedgrowth.(c)immiserizinggrowth.(d)balancedgrowth.(e)imbalancedgrowth.AnswerAdgrowthinCountryHwill(a)improvethetermsoftradeofCountryH.btriggerantibiasregulationsoftheWTO.(c)worsenthetermsoftradeofCountryF(thetradepartner).dimprovethetermsoftradeofCountryF.(e)decreaseeconomicwelfareinCountryH.Answer:Dmmiserizinggrowthis(a)likelytooccuriftheexportingcountryispoor.(b)likelytooccuriftheexportingcountryisrich.(c)likelytooccurwhentermsoftradechange.(d)likelytooccurifrelativesuppliesareelastic.(e)Noneoftheabove.Answer:EnationalDevelopmenttransfersfundstopoorcountriesinSubSaharanAfricathismust(a)worsentheU.S.termsoftrade.(b)improvetheU.S.termsoftrade.(c)worsenthetermsoftradeoftheAfricanaidrecipients.(d)improvethetermsoftradeoftheAfricanaidrecipients.(e)Noneoftheabove.Answer:EahighermarginalpropensitytoconsumeeachandeveryproductthandoestheUnitedStates,thensuchaidwill(a)worsentheU.S.termsoftrade.(b)improvetheU.S.termsoftrade.(c)leavetheworldtermsoftradeunaffected.dworsenthetermsoftradeofbothdonorandrecipientcountries.(e)Noneoftheabove.Answer:BopensitytoconsumeMPCimportsascomparedtobothitsMPCforexportablesandnontradablesthensuchaidwill(a)worsentheU.S.termsoftrade.(b)improvetheU.S.termsoftrade.(c)leavetheworldtermsoftradeunaffected.dworsenthetermsoftradeofbothdonorandrecipientcountries.(e)Noneoftheabove.Answer:Byimposesatariffonitsimportedgoodthiswilltendto(a)havenoeffectontermsoftrade.(b)improvethetermsoftradeofallcountries.(c)improvethetermsoftradeoftheUnitedStates.(d)causeadeteriorationofU.S.termsoftrade.(e)raisetheworldpriceofthegoodimportedbytheUnitedStates.Answer:Cmposesatariffonitsimportedgoodthiswill(a)havenoeffectoneconomicwelfare.(b)improvethetermsoftradeofallcountries.(c)improvetheeconomicwelfareoftheUnitedStates.(e)NoneoftheaboveAnswer:D15.Acountrywillbeabletoconsumeabundlewhichisnotattainablesolelyfromdomesticproductiononlyif(a)theworldtermsoftradedifferfromitsdomesticrelativecosts.(b)thecountryspecializesinoneproduct.(c)thecountryavoidsinternationaltrade.dtheworldtermsoftradeequalthedomesticrelativecosts.(e)Noneoftheabove.AnswerA(a)whatgoodsareimported.(b)whatgoodsareexported.(c)thevolumeoftrade.dthepricesatwhichtradeoccurs.(e)Noneoftheabove.Answer:Detbartertermsoftradeincreaseimproveweknowfromthisthateconomicelfareinthiscountry(a)increasesbincreasesbutonlyrelativetothatofitstradepartners(c)isunchangedddecreases(e)NoneoftheaboveAnswer:Eproductionpossibilityfrontierofacountrythen(a)consumersareindifferentbetweenthetwobundles.(b)producersareindifferentbetweenthetwobundles.(c)atanypointintime,thecountrycouldproduceboth.(d)Bothcostthesame.(e)Thecountrycouldproduceeitherofthetwobundles.Answer:Entaonitsproductionpossibilityfrontierthen(a)allofthecountry’sworkersarespecializedinoneproduct.(b)allofthecounty’scapitalisusedforoneproduct.(c)allofthecounty’sworkersareemployed.(d)allofitscapitalisused,butnotefficiently.(e)Noneoftheabove.Answer:CtpointAontheproductionpossibilityfrontierandthecommunityindifferencecurvecutsthroughpointafromnorthwesttosoutheastthentheoptimalautarkyproductionbundleis(a)atpointA.(b)totherightofpointA.(c)totheleftofpointA.(d)tothenortheastofpointA.(e)tothesouthwestofpointA.Answer:B21.Abundleindicatedbyapointtothenortheastoftheproductionpossibilityfrontieris(a)unattainableatapointintime.(b)unattainableatapointintimewithoutinternationaltrade.(c)unattainableatapointintimewithoutdomestictrade.(d)unattainableasaconsumptionpoint.(e)Noneoftheabove.Answer:Btrieswithdiminishingreturnsanddifferentmarginalratesofsubstitutionbetweentwoproductsweretoengageintrade,then(a)theshapesoftheirrespectiveproductionpossibilityfrontierswouldchange.(b)themarginalratesofsubstitutionofbothwouldbecomeequal.(c)thelargerofthetwocountrieswoulddominatetheirtrade.(d)thecountrywithrelativelyelasticsupplieswouldexportmore.(e)Noneoftheabove.Answer:BIfacountrybeganexportingproductAandimportingproductBthen,ascomparedtotheautarkysituationthemarginalcostofproductAwill(a)increase.(b)decrease.(c)shiftoutward.dshiftinward.(e)Noneoftheabove.Answer:AIfbeginningfromafreetradeequilibriumthenetbarter)termsoftradeimproveforacountry,itwill(a)increaseproductionofitsimportcompetinggood.(b)increaseconsumptionofitsexportgood.(c)increasethequantityofitsimports.dexperienceanexportbiasedshiftinitsproductionpossibilityfrontier.(e)Noneoftheabove.Answer:CIfasmallcountryweretolevyatariffonitsimportsthenthiswould(a)havenoeffectonthatcountry’seconomicwelfare.(b)increasethecountry’seconomicwelfare.(c)decreasethecountry’seconomicwelfare.dchangethetermsoftrade.(e)Noneoftheabove.Answer:C26.Anincreaseinacountry’snetcommoditytermsoftradewillalways(a)increasethecountry’seconomicwelfare.(b)increasethecountry’srealincome.(c)increasethecountry’squantityofexports.increasethecountrysproductionofitsimportcompetinggood(e)Noneoftheabove.Answer:E27.AfterWWI,Germanywasforcedtomakelargereparations—transfersofrealincome-toFrance.IfthemarginalpropensitytoconsumewasequalinbothcountriesandifFrance’sdemandwasbiasedtowardfoodrelativetoGermanysdemandpatternthenwewouldexpecttofind(a)theworld’srelativepriceforfoodremainsunchanged.(b)theworld’srelativepriceforfoodincrease.(c)theworld’srelativepriceforfooddecrease.dtheworldrelativepriceforbothfoodandnon-foodrise.(e)Noneoftheabove.Answer:BIfweaddtoQuestion27thatFranceexportedmanufactures,whereasGermanyexportedfood,thenthereparationsfromGermanytoFrancewould(a)improveFrance’sinternationaltermsoftrade.(b)causeFrance’termsoftradetodeteriorate.(c)causebothFrance’andGermany’stermsoftradetodeteriorate.(d)causebothFrance’andGermany’stermsoftradetoimprove.(e)Noneoftheabove.Answer:BIfacountrylentmoneytoanother,thismust(a)lowerthetermsoftradeoftherecipientcountry.(b)lowerthetermsoftradeofbothcountries.(c)improvethetermsoftradeoftherecipientcountry.dimprovethetermsoftradeofthedonorcountry(e)Noneoftheabove.Answer:E30.Duringthe19thCentury,economicgrowthofthemajortradingcountrieswasbiasedtowardmanufacturesandawayfromfood.ThelessdevelopedcountriesofthattimewerenetexportersofodFromthisinformationwewouldexpecttohaveobserved(a)fallingtermsoftradeforthelessdevelopedcountries.(b)improving(rising)termsoftradeforthelessdevelopedcountries.(c)nochangeatallinthetermsoftradeofthelessdevelopedcountries.(d)adecreaseintherelativepriceoffood.(e)Noneoftheabove.Answer:Brizinggrowthcouldoccurto(a)apoorcountryexperiencingexport-biasedeconomicgrowth.(b)apoorcountryexperiencingimport-biasedeconomicgrowth.(c)apoorcountryexperiencinggrowthinitsnon-tradedsector.(d)apoorcountryexperiencingcapital-intensivebiasedgrowth.(e)Noneoftheabove.Answer:A32.Alargecountryexperiencingimport-biasedeconomicgrowthwilltendtoexperience(a)positivetermsoftrade.(b)deterioratingtermsoftrade.(c)improvingtermsoftrade.(d)immiserizingtermsoftrade.(e)Noneoftheabove.Answer:CtheperiodprecedingtherecentFinancialCrisisinAsiatheSouthEastAsiancountrieswereeivinglargeinflowsoffinancialcapitalFollowingJohnMaynardKeynestheorythisshouldavecaused(a)aglutintheirbankingassetsituation.(b)animprovementintheirtermsoftrade.(c)deteriorationintheirtermsoftrade.dafluctuationupwardandthendownwardintheirtermsoftrade.(e)Noneoftheabove.Answer:BIfSloveniaisasmallcountryinworldtradetermsthenifitimposesalargeseriesoftariffsonmanyofitsimportsthiswould(a)havenoeffectonitstermsoftrade.(b)improveitstermsoftrade.(c)deteriorateitstermsoftrade.ddecreaseitsmarginalpropensitytoconsume.(e)Noneoftheabove.Answer:AIfSloveniaisalargecountryinworldtradethenifitimposesalargesetoftariffsonmanyofitssthiswould(a)havenoeffectonitstermsoftrade.(b)improveitstermsoftrade.(c)deteriorateitstermsoftrade.ddecreaseitsmarginalpropensitytoconsume.(e)Noneoftheabove.Answer:Bveniawerealargecountryinworldtradethenifitimposesalargesetoftariffsonitsimportsismust(a)causeretaliationonthepartofitstradepartners.(b)harmSlovenia’srealincome.(c)improveSlovenia’srealincome.(d)improvetherealincomeofitstradepartners.(e)Noneoftheabove.Answer:Eiawerealargecountryinworldtradethenifitinstitutedalargesetofsubsidiesforitsmust(a)havenoeffectonitstermsoftrade.(b)improveitstermsoftrade.(c)deteriorateitstermsoftrade.ddecreaseitsmarginalpropensitytoconsume.(e)Noneoftheabove.Answer:Ciawerealargecountryinworldtradethenifitinstitutedalargesetofsubsidiesforitsmust(a)causeretaliationonthepartofitstradepartners.(b)harmSlovenia’srealincome.(c)improveSlovenia’srealincome.(d)improvetherealincomeofitstradepartners.(e)Noneoftheabove.Answer:DeUnitedStatesexportsskilledlaborintensiveproductsandservicesthenweshouldexpectunionsrepresentingskilledlaborto(a)lobbyinfavoroftariffs.(b)lobbyagainsttheimpositionoftariffs.(c)beindifferenttotheissueoftariffs.(d)lobbyinfavorofimprovedtermsoftrade.(e)Notenoughinformation.Answer:EIftheUnitedStatesexportsskilledlaborintensiveproductsandservicesthenweshouldexpectunionsrepresentingunskilledlaborto(a)lobbyinfavoroftariffs.(b)lobbyagainsttheimpositionoftariffs.(c)beindifferenttotheissueoftariffs.(d)lobbyinfavorofimprovedtermsoftrade.(e)Notenoughinformation.Answer:BIfatherearenointernationalloansorcapitalflowsthenifacountrystermsoftradeimprove,weouldfindthat(a)thevalueofitsexportsexceedsthevalueofitsimports.(b)thevalueofitsexportsbecomeslessthanthatofitsimports.(c)thevalueofitsexportsexactlyequalsthatofitsimports.(d)thequantityofitsexportsequalsthatofitsimports.(e)Noneoftheabove.Answer:CIftheUSAgencyforInternationalDevelopmenttransfersfundstopoorcountriesinSub-SaharanricatheconventionalassumptionfollowingKeynesanalysiswouldpresumethatthiswouldendto(a)worsentheU.S.termsoftrade.(b)improvetheU.S.termsoftrade.(c)worsenthetermsoftradeoftheAfricanaidrecipients.(d)improvethetermsoftradeoftheAfricanaidrecipients.(e)Noneoftheabove.Answer:AinacountrystermsoftradeincreasesitswelfareWhatwouldhappenifwerelaxtheceterisparibusassumptionandallowforthelawofdemandtooperaternationallyAnswer:Letusassumethatthetermsoftrade(ortechnicallythenetcommoditytermsoftrade)mprovethustherelativepriceofacountrysexportsincreaseThiswouldlogicallyleadtoashiftawaybyworldconsumerstosubstitutegoodsIfthedemandforacountry’sexportsiselasticthequantitydecreasewouldbeproportionallylargerthantheperunitcreaseThistermoftradeeffectwouldactuallylowerthecountrysrealincomeandeconomicwelfare.2.Ifacountry’sgrowthisbiasedinfavorofitsimport,thisshouldunequivocallyimproveitstermsoftradeanditseconomicwelfare.Discuss.panexperienceseconomicgrowthbiasedinfavorofitsimportsubstitutesForsumethatJapanimportscomponentsandexportsfinalgoodsbutthatitexperiencesamajorgrowthinitscomponentsmanufacturesectorSinceJapanisinternationallyalargecountryinthesemarketsthiswouldtendtohurtitscomponentsupplierstermsoftradeandhelpJapans.However,suchabiasineconomicgrowthmaytendtolessenthevolumeofinternationaltradeAtanextremeJapanmaybecomeanexporterofcomponentsandanimporteroffinalgoods.IftheresultisalesseningofalizationandofthevolumeoftradethenthiseffectwilllowerJapanswelfaressociatedwithgainsfromtradeIfanactualchangeinthepatternofcomparativetageoccursapossibilitythismaycausedynamicdislocationswhoseharmoverpowersstaticgainsforarelativelylongperiodoftime.Itisimpossibleforeconomicgrowthinasmallcountrytolowerthatcountry’seconomicwelfare,regardlessofthebiasofthegrowth.Explain.Answer:Thisisatruestatement.ThereasoneconomicgrowthmayhurtacountryisifthetermsoftradeeffectcountersanddominatesthegrowtheffectInthecaseofthesmallcountrythereisnotermsoftradeeffect.4.AttheconclusionofWorldWarI,Germany,asapunishment,wasobligedtomakealargetransfertoFranceintheformofreparationsIsitpossiblethattheactualreparationsmayhaveimprovedrmanyseconomicwelfareultisnotlikelyHowevertheoreticallyifFrancesincomeelasticityofdemandportswashigherthanGermanysincomeelasticityofdemandforitshentherealincometransferassociatedwiththesereparationsmayhavermanystermsoftradeandimproveditsbalanceofpaymentsthushelpingGermanyinmannerunanticipatedintheTreatyofVerssaille.Explain.5.Anexportsubsidyhastheoppositeeffectontermsoftradetotheeffectofanimporttariff.Domesticallyatariffwillraisethepriceoftheimportgood,deterioratingthedomestictermsoftradeAproductionsubsidyfortheexportproductwilllowerthelocalpriceoftheexportgood,loweringthedomestictermsoftradeforthecountry.HencetheexportsubsidyandtheimporttariffethesameeffectThisanalysisseemstocontradictthefirstsentenceinthisparagraphDiscussthisparadox.Answer:Whilethis(Lerner)equivalencemaywelloccurdomestically,internationallythetariffwillimproveacountrystermsoftradeAnexportsubsidyontheotherhandwillinfactinternationalpriceofthenowreadilyavailableexportgoodhencehurtingacountry’stermsoftrade.ountrysnetbartertermsoftradeimproveincreaseitispossiblethatthiscoulddecreasethelueofitsexportsdemandedandhenceharmitseconomicwelfareDiscussthispossibilityWhatalternativemeasurefor“termsoftrade”doesthissuggest?Answer:An“improvement”inthetermsoftradeoccurswhenthepriceofacountry’sexportsrisesbymorethanthepriceofitsimportsIfdemandforthiscountrysexportsisinelastic,thenthiscoulddecreasedemandforitsexportsintheworld.ThisistreatedunderthetopicsoftheMarshalLernerconditionsfortheeffectsofadepreciationonthebalanceofpayments.Thissuggeststhatwemaywishtousesomekindof“incometermsoftrade,”thewouldexplicitlyconsiderbothchangesinrelativetradeablespricesandalsoquantitiesofexport(thelatternotdealtwithbythenetbartertermsoftrade).1.Albaniarefusedtoengageininternationaltradeforideologicalreasons.Tomaximizeitseconomicwelfareitwouldchoosetoproduceatwhichpointinthediagramabove?SupposethePA/PBatpointawasequaltoGiventhisinformationinwhichgoodAorB)doesAlbaniaenjoyacomparativeantageattheColdWarisoverAlbaniaisinterestedinobtainingeconomicwelfaregainsfromtradeTherelevantinternationalrelativepriceisPA/PB=2.Albaniawouldthereforechoosetoproduceatwhichpointaborc)?Giventhisadditionalinformation,inwhichgooddoesAlbaniaenjoyaparativeadvantageAnswer:Albaniawouldchoosetoproduceatpointa.Withnoreferencetoworldtermsoftrade,onecannotestablishAlbania’scomparativeadvantage.LaterwhenAlbaniadiscoversthattherelativepriceofAequalstwicethepriceofB,itknowsthatithasacomparativeadvantageinAThereforeAlbaniawouldproduceatproductionpointb.2.Now,supposethattherelativepriceofAisactuallynothigherthanAlbania’sautarkiclevelof1,butquitetheopposite(e.g.PA/PB=0.5).WouldAlbaniastillbeabletogainfromtrade?Ifso,wherewouldbeitsproductionpointGiventheinformationinthisquestion,whereisAlbania’scomparativeadvantageAnswer:Yes.Aslongastheworld’stermsoftradedifferedfromthoseofAlbania,thatcountryrominternationaltradeInthisparticularcaseitspointofproductionwithtradewouldbeatpointc.oseasaresultofvariousdynamicfactorsassociatedwithexposuretointernationalcompetitionAlbaniaseconomygrewandisnowrepresentedbytherightmostproductionpossibilityfrontierintheFigureaboveIfitspointofproductionwithtradewaspointc,wouldyouconsiderthisgrowthtobeexport-biasedorimportbiased?IfAlbaniawerealargecountrywithrespecttotheworldtradeofAandBhowwouldthisgrowthaffectAlbaniastermsoftrade?Itsrealincome?Answer:Ifpointcistheproductionpointwithtrade,thenAlbaniahasacomparativeadvantageinoodBThereforefromtheshapeofthenewproductionpossib