PAGE 62 Test Bank for International Economics, 9esu：国际经济学62页测试银行9esu.doc

CHAPTER 2FOUNDATIONS OF MODERN TRADE THEORYMULTIPLE-CHOICE QUESTIONS1.The mercantilists would have objected to:a.Export promotion policies initiated by the governmentb.The use of tariffs or quotas to restrict importsc.Trade policies designed to accumulate gold and other precious metalsd.International trade based on open markets2.Unlike the mercantilists, Adam Smith maintained that:a.Trade benefits one nation only at the expense of another nationb.Government control of trade leads to maximum economic welfarec. All nations can gain from free international traded.The worlds output of goods must remain constant over time3.The trading principle formulated by Adam Smith maintained that:a.International prices are determined from the demand side of the marketb.Differences in resource endowments determine comparative advantagec.Differences in income levels govern world trade patternsd. Absolute cost differences determine the immediate basis for trade4.Unlike Adam Smith, David Ricardos trading principle emphasizes the:a.Demand side of the marketb.Supply side of the marketc. Role of comparative costsd.Role of absolute costs5.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 productb.Comparative advantage in the production of the productc.Lower marginal rate of transformation for the productd.Lower opportunity cost of producing the product6.According to the principle of comparative advantage, specialization and trade increase a nations total output since:a. Resources are directed to their highest productivityb.The output of the nations trading partner declinesc.The nation can produce outside of its production possibilities curved.The problem of unemployment is eliminated7.In a two-product, two-country world, international trade can lead to increases in:a.Consumer welfare only if output of both products is increasedb. Output of both products and consumer welfare in both countriesc.Total production of both products, but not consumer welfare in both countriesd.Consumer welfare in both countries, but not total production of both products8.As a result of international trade, specialization in production tends to be:a.Complete with constant costscomplete with increasing costsb. Complete with constant costsincomplete with increasing costsc.Incomplete with constant costscomplete with increasing costsd.Incomplete with constant costsincomplete with increasing costs9.A nation that gains from trade will find its consumption point being located:a.Inside its production possibilities curveb.Along its production possibilities curvec. Outside its production possibilities curved.None of the aboveUsing 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 DayCountryTons of SteelTelevisionsUnited States545United Kingdom102010.Refer to Table 2.1. The United States has the absolute advantage in the production of:a.Steelb.Televisionsc. Both steel and televisionsd.Neither steel nor televisions11.Refer to Table 2.1. The United Kingdom has a comparative advantage in the production of:a. Steelb.Televisionsc.Both steel and televisionsd.Neither steel nor televisions12.Refer to Table 2.1. If trade opens up between the United States and the United Kingdom, American firms should specialize in producing:a.Steelb. Televisionsc.Both steel and televisionsd.Neither steel nor televisions13.Refer to Table 2.1. The opportunity cost of producing one ton of steel in the United States is:a. 3 televisionsb.10 televisionsc.20 televisionsd.45 televisions14.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 televisionsb. At least 2 televisions, but no more than 3 televisionsc.At least 3 televisions, but no more than 4 televisionsd.At least 4 televisions, but no more than 5 televisions15.Refer to Table 2.1. The United Kingdom gains most from trade if:a.1 ton of steel trades for 2 televisionsb. 1 ton of steel trades for 3 televisionsc.2 tons of steel trade for 4 televisionsd.2 tons of steel trade for 5 televisions16.Concerning international trade restrictions, which of the following is false? Trade restrictions:a.Limit specialization and the division of laborb.Reduce the volume of trade and the gains from tradec. Cause nations to produce inside their production possibilities curvesd.May result in a country producing some of the product of its comparative disadvantage17.If a production possibilities curve is bowed out (i.e., concave) in appearance, production occurs under conditions of:a.Constant opportunity costsb. Increasing opportunity costsc.Decreasing opportunity costsd.Zero opportunity costs18.Increasing opportunity costs suggest that:a. Resources are not perfectly shiftable between the production of two goodsb.Resources are fully shiftable between the production of two goodsc.A countrys production possibilities curve appears as a straight lined.A countrys production possibilities curve is bowed inward (i.e., convex) in appearance19.The trading-triangle concept is used to indicate a nations:a.Exports, marginal rate of transformation, terms of tradeb.Imports, terms of trade, marginal rate of transformationc.Marginal rate of transformation, imports, exportsd. Terms of trade, exports, imports20.Assuming increasing cost conditions, trade between two countries would not be likely if they have:a.Identical demand conditions but different supply conditionsb.Identical supply conditions but different demand conditionsc.Different supply conditions and different demand conditionsd. Identical demand conditions and identical supply conditionsUse the data in Table 2.2 to answer Questions 21 through 26.Table 2.2.Output Possibilities for South Korea and JapanOutput per Worker per DayCountryTons of SteelVCRsSouth Korea8040Japan202021.Refer to Table 2.2. The opportunity cost of one VCR in Japan is:a. 1 ton of steelb.2 tons of steelc.3 tons of steeld.4 tons of steel22.Refer to Table 2.2. The opportunity cost of one VCR in South Korea is:a.½ ton of steelb.1 ton of steelc.1½ tons of steeld. 2 tons of steel23.Refer to Table 2.2. According to the principle of absolute advantage, Japan should:a.Export steelb.Export VCRsc.Export steel and VCRsd. None of the above; there is no basis for gainful trade24.Refer to Table 2.2. According to the principle of comparative advantage:a. South Korea should export steelb.South Korea should export steel and VCRsc.Japan should export steeld.Japan should export steel and VCRs25.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.½ ton of steelb.1 ton of steelc.1½ tons of steeld. 2 tons of steel26.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 VCRb.2 VCRsc.3 VCRsd.4 VCRs27.The earliest statement of the principle of comparative advantage is associated with:a.Adam Smithb. David Ricardoc.Eli Heckscherd.Bertil Ohlin28.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 conditionsb.Trade would depend on economies of large-scale productionc.Trade would depend on the use of different currenciesd.There would be no basis for gainful trade29.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 countryb. Both countries gain from tradec.Only one country gains from traded.One country gains and the other country loses from trade30.International trade is based on the notion that:a.Different currencies are an obstacle to international tradeb. Goods are more mobile internationally than are resourcesc.Resources are more mobile internationally than are goodsd.A countrys exports should always exceed its imports31.Refer to Figure 2.1. The relative cost of steel in terms of aluminum is:a.4.0 tonsb.2.0 tonsc. 0.5 tonsd.0.25 tonsFigure 2.1.Production Possibilities Schedule32.Refer to Figure 2.1. The relative cost of aluminum in terms of steel is:a.4.0 tonsb.2.0 tonsc.0.5 tonsd.0.25 tons33.Refer to Figure 2.1. If the relative cost of steel were to rise, then the production possibilities schedule would:a. Become steeperb.Become flatterc.Shift inward in a parallel mannerd.Shift outward in a parallel manner34.Refer to Figure 2.1. If the relative cost of aluminum were to rise, then the production possibilities schedule would:a.Become steeperb. Become flatterc.Shift inward in a parallel mannerd.Shift outward in a parallel manner35.When a nation achieves autarky equilibrium:a.Input price equals final product priceb.Labor productivity equals the wage ratec.Imports equal exportsd. Production equals consumption36.When a nation is in autarky and maximizes its living standard, its consumption and production points are:a. Along the production possibilities scheduleb.Above the production possibilities schedulec.Beneath the production possibilities scheduled.Any of the above37.If Canada experiences increasing opportunity costs, its supply schedule of steel will be:a.Downward-slopingb. Upward-slopingc.Horizontald.Vertical38.If Canada experiences constant opportunity costs, its supply schedule of steel will be:a.Downward-slopingb.Upward-slopingc. Horizontald.Vertical39.The gains from international trade increase as:a.A nation consumes inside of its production possibilities scheduleb.A nation consumes along its production possibilities schedulec. The international terms of trade rises above the nations autarky priced.The international terms of trade approaches the nations autarky price40.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 steelb.France having a comparative disadvantage against Japan in bicycles and steelc.Japan having a comparative advantage over France in steel and bicyclesd.Japan having a comparative disadvantage against Japan in bicycles and steel41.Ricardos theory of comparative advantage was of limited real-world validity because it was founded on the:a. Labor theory of valueb.Capital theory of valuec.Land theory of valued.Entrepreneur theory of value42.Assume that labor is the only factor of production and that wages in the United States equal $20 per hour while wages in the United Kingdom equal $10 per hour. Production costs would be lower in the United States than the United Kingdom if:a. U.S. labor productivity equaled 40 units per hour while U.K. labor productivity equaled 15 units per hourb.U.S. labor productivity equaled 30 units per hour while U.K. labor productivity equaled 20 units per hourc.U.S. labor productivity equaled 20 units per hour while U.K. labor productivity equaled 30 units per hourd.U.S. labor productivity equaled 15 units per hour while U.K. labor productivity equaled 25 units per hour43.According to Ricardo, a country will have a comparative advantage in the product in which its:a.Labor productivity is relatively lowb. Labor productivity is relatively highc.Labor mobility is relatively lowd.Labor mobility is relatively high44.The Ricardian model of comparative advantage is based on all of the following assumptions except:a.Only two nations and two productsb. Product quality varies among nationsc.Labor is the only factor of productiond.Labor can move freely within a nation45.The writings of G. D. A. MacDougall emphasized which of the following as an explanation of a countrys competitive position?a.National income levelsb.Relative endowments of natural resourcesc.Domestic tastes and preferencesd. Labor compensation and productivity levelsTRUE-FALSE QUESTIONSTF1.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.TF11.Assume that the United States is more efficient than the United Kingdom in the production of all goods. Mutually beneficial trade is possible according to the principle of absolute advantage, but is impossible according to the principle of comparative advantage.TF12.It is possible for a nation not to have an absolute advantage in anything; but it is not possible for one nation to have a comparative advantage in everythin