国际经济学答案.ppt

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1、Review Questions and Problems for Chapter 31.a.Increasing opportunity costs arise because resources or factors of production are not homogeneous(i.e.,all units of the same factor are not identical or of the same quality)and not used in the same fixed proportion or intensity in the production of all

2、commodities.This means that as the nation produces more of a commodity,it must utilize resources that become progressively less efficient or less suited for the production of that commodity.As a result,the nation must give up more and more of the second commodity to release just enough resources to

3、produce each additional unit of the first commodity(i.e.,it faces increasing costs).b.In the real world,the production frontiers of different nations will usually differ because ofdifferences in factor endowments and technology.Answer to Review Questions and Problems2.a.See the following figure.b.Th

4、e slope of the transformation curve increases as the nation produces more of X and decreases as the nation produces more of Y.These reflect increasing opportunity costs asthe nation produces more of X or Y.Answer to Review Questions and Problems3.a.See the following figure.b.Nation 1 has a comparati

5、ve advantage in X and Nation 2 in Y.c.If the relative commodity price line in autarky has equal slope in both nations.This is rare.Answer to Review Questions and Problems4.a.See following Figure3.Points B and B are the production points in Nations 1 and 2,respectively,with specialization and trade a

6、nd E and E are the consumption points.Answer to Review Questions and Problems5.a.The equilibrium-relative commodity price in isolation is the relative price that prevails in the nation without trade or in autarky.b.The equilibrium-relative commodity price in isolation for the commodity plotted along

7、 the horizontal axis is given by the(absolute)slope of the tangent of the production frontier andthe community indifference curve at the point of production and consumption in the nation in isolation.c.The nation with the lower equilibrium relative commodity price in isolation or autarky has a compa

8、rative advantage in the commodity measured along the commodity axis and acomparative disadvantage in the commodity measured along the vertical axis.Answer to Review Questions and Problems6.See Figure following.Answer to Review Questions and Problems7.a.The reason for incomplete specialization under

9、increasing costs is that as each nation specializes in the production of the commodity of its comparative advantage,the relative commodity price in each nation moves toward each other(i.e.,become less unequal)until they are identical in both nations.At that point,it does not pay for either nation to

10、 continue to expand the production of the commodity of its initial comparative advantage.This occurs before either nation has completely specialized in production.b.Under constant costs,each nation specializes completely in production of the commodity of its comparative advantage(i.e.,produces only

11、that commodity).The reason is that since it pays for the nation to obtain some of the commodity of its comparative disadvantage from the other nation,then it pays for the nation to get all of the commodity of its comparativedisadvantage from the other nation(i.e.,to specialize completely in the prod

12、uction of the commodity of its comparative advantage).Answer to Review Questions and Problems8.See Figure following.Nations 1 and 2 have identical production frontiers(shown by a single curve)but differenttastes(indifference curves).In isolation,Nation 1 produces and consumes at point A and Nation 2

13、 at point A.Since PA PA,Nation 1 has a comparative advantage in X and Nation 2 in Y.Answer to Review Questions and Problems9.a.If the terms of trade of a nation improved from 100 to 110 over a given period of time,the terms of trade of the trade partner would deteriorate by about 9 percent over the

14、same period of time(100-110)/110=-0.09=0.9%.b.A deterioration in the terms of trade of the trade partner can be said to be unfavorable to the trade partner because the trade partner must pay a higher price for its imports in terms of its exports.c.This does not necessarily mean that the welfare of t

15、he trade partner has decreased because the deterioration in its terms of trade may have resulted from an increase in productivity that is shared with the other nation.Answer to Review Questions and Problems10.It is true that Mexicos wages are much lower than U.S.wages(they are about one fifth of the

16、average wage in the United States),but labor productivity is much higher in the United Statesand so labor costs are not necessarily higher than in Mexico.In any event,trade can still bebased on comparative advantage.Multiple-Choice Questions1.A production frontier that is concave indicates that the

17、nation incurs increasing opportunity costs in the production of:modity X modity Y onlyc.both commoditiesd.neither commodity2.The marginal rate of transformation(MRT)of X for Y refers to:a.the amount of Y that a nation must give up to produce each additional unit of Xb.the opportunity cost of Xc.the

18、absolute slope of the production frontier at the point of productiond.all of the aboveAnswer to Review Questions and Problems3.Which of the following is not a reason for increasing opportunity costs:a.technology differs among nationsb.factors of production are not homogeneousc.factors of production

19、are not used in the same fixed proportion in the production of allcommoditiesd.for the nation to produce more of a commodity,it must use resources that are less andless suited in the production of the commodityAnswer to Review Questions and Problems4.Community indifference curves:a.are negatively sl

20、opedb.are convex to the originc.should not crossd.all of the above5.Which of the following statements is true with respect to the MRS of X for Y?a.it is given by the absolute slope of the indifference curveb.declines as the nation moves down an indifference curvec.rises as the nation moves up an ind

21、ifference curved.all of the aboveAnswer to Review Questions and Problems6.The marginal rate of substitution(MRS)of X for Y in consumption refers to the:a.amount of X that a nation must give up for one extra unit of Y and still remain on thesame indifference curveb.amount of Y that a nation must give

22、 up for one extra unit of X and still remain on the same indifference curveb.amount of X that a nation must give up for one extra unit of Y to reach a higher indifference curvec.amount of Y that a nation must give up for one extra unit of X to reach a higher indifference curveAnswer to Review Questi

23、ons and Problems7.Which of the following is not true for a nation that is in equilibrium in isolation?a.it consumes inside its production frontierb.it reaches the highest indifference curve possible with its production frontierc.the indifference curve is tangent to the nations production frontierd.M

24、RT of X for Y equals MRS of X for Y,and they are equal to Px/PyAnswer to Review Questions and Problems8.If the internal Px/Py is lower in nation 1 than in nation 2 without trade:a.nation 1 has a comparative advantage in commodity Yb.nation 2 has a comparative advantage in commodity Xc.nation 2 has a

25、 comparative advantage in commodity Yd.none of the above9.If actual Px/Py exceeds the equilibrium relative Px/Py with tradea.the nation exporting commodity X will want to export more of X than at equilibriumb.the nation importing commodity X will want to import less of X than at equilibriumc.Px/Py w

26、ill fall toward the equilibrium Px/Pyd.all of the aboveAnswer to Review Questions and Problems10.With free trade under increasing costs:a.neither nation will specialize completely in production if both nations are largeb.at least one nation will consume above its production frontierc.a small nation

27、will always gain from traded.all of the above11.Which of the following statements is true?a.a nations demand curve of a commodity is derived from production points on the nations production frontier.b.a nations supply curve for a commodity is derived from community indifference curves and trade line

28、sc.the price of the nations import commodity will fall as a result of international traded.none of the aboveAnswer to Review Questions and Problems12.At a relative commodity price above equilibriuma.the quantity demand of imports exceeds the quantity supplied of exportsb.the relative price of the co

29、mmodity will risec.the commodity price will falld.none of the above13.If the terms of trade increase in a two-nation world,those of the trade partner:a.deteriorateb.improvec.remain unchangedd.any of the aboveAnswer to Review Questions and Problems14.A deterioration of a nations terms of trade causes

30、 the nations welfare to:a.deteriorateb.improvec.remain unchangedd.any of the above15.Mutually beneficial trade cannot occur if production frontiers are:a.equal but tastes are notb.different but tastes are the samec.different and tastes are also differentd.the same and tastes are also the same.Answer

31、s to Review Questions and Problems for Chapter four1.a.The HeckscherOhlin(H-0)theorem postulates that a nation will export those commoditieswhose production requires the intensive use of the nations relatively abundant andcheap factor and import the commodities whose production requires the intensiv

32、e useof the nations relatively scarce and expensive factor.In short,the relatively labor-richnation exports relatively labor-intensive commodities and imports the relativelycapital-intensive commodities.b.Heckscher and Ohlin identify the relative difference in factor endowments amongnations as the b

33、asic determinant of comparative advantage and international trade.c.The H-O Theory represent an extension of the standard trade model because it explainsthe basis for comparative advantage(classical economists,such as Ricardo had assumedit)and examines the effect of international trade on factor pri

34、ces and income distribution(which classical economists had left unanswered).Answers to Review Questions and Problems2.See the following FigureAnswers to Review Questions and Problems9.See the following FigureAnswers to Review Questions and ProblemsMultiple-Choice QuestionsAnswers to Review Questions

35、 and Problems1.The H-O model extends the classical trade model by:a.explaining the basis for comparative advantageb.examining the effect of trade on factor pricesc.both a and bd.neither a nor b2.A nation is said to have a relative abundance of K if it has a:a.greater absolute amount of Kb.smaller ab

36、solute amount of Lc.higher L/K ratiod.lower price of K in relation to the price of LAnswers to Review Questions and Problems3.A difference in relative commodity prices between nations can be based on a difference in:a.technologyb.factor endowmentsc.tastesd.all of the aboveAnswers to Review Questions

37、 and Problems4.In the H-O model,international trade is based mostly on a difference in:a.technologyb.factor endowmentsc.economies of scaled.tastesAnswers to Review Questions and Problems5.According to the H-O theory,trade reduces international differences in:modity pricesb.in factor pricesc.both com

38、modity and factor pricesd.neither relative nor absolute factor pricesAnswers to Review Questions and Problems6.According to the Stolper-Samuelson theorem,international trade leads toa.reduction in the real income of the nations relatively abundant factorb.reduction in the real income of the nations

39、relatively scarce factorc.increase in the real income of the nations relatively scarce factord.none of the aboveAnswers to Review Questions and Problems7.Which of the following is false with regard to the specific factors theorem,international tradea.harms the immobile factors that are specific to t

40、he nations export commodities or sectorsb.harms the immobile factors that are specific to the nations import-competing commoditiesc.has an ambiguous effect on the nations mobile factorsd.may benefit or harm the nations mobile factorsAnswers to Review Questions and Problems8.Perfect international mob

41、ility of factors of productiona.leads to a reduction in international differences in the returns to homogenous factorsb.acts as a substitute for international trade in its effects on factor pricesc.operates on the supply of factors in affecting factor pricesd.all of the aboveAnswers to Review Questi

42、ons and Problems9.The Leontief paradox refers to the empirical finding that U.S.a.import substitutes were more K-intensive than exportsb.exports were more L-intensive than importsc.exports were more K-intensive than import substitutesd.all of the aboveAnswers to Review Questions and Problems10.From

43、empirical studies,we onclude that the H-O theory:a.must be rejectedb.must be accepted without reservationsc.can generally be acceptedd.explains all international tradeAnswers to Review Questions and Problems11.International trade can be based on economies of scale even if both nations have identical

44、:a.factor endowmentsb.tastesc.technologyd.all of the aboveAnswers to Review Questions and Problems12.A great deal of international trade:a.is intra-industry tradeb.involves differentiated productsc.is based on monopolistic competitiond.all of the aboveAnswers to Review Questions and ProblemsAnswer t

45、o Problems for Chapter 51.a.See following Figure 1b.Consumption is 70X,production is 50X and imports are 20X.c.The consumption effect is 30X,the production effect is+30X,the trade effect is 60X,and the revenue effect is$30Answer to Problems2.a.The consumer surplus is$250 without and$l22.50 with the

46、tariff(see above Figure).b.Of the increase in the revenue of producers with the tariff(as compared with theirrevenues under free trade),$22.50 represents the increase in production costs andanother$22.50 represents the increase in rent or producer surplus(see above Figure).c.The dollar value or the

47、protection cost of the tariff is$45(see above Figure).Answer to Problems3.see following FigureAnswer to Problems4.see following FigureAnswer to Problems5.The optimum tariff is the tariff that maximizes the net benefit resulting from the improvement in the nations terms of trade against the negative

48、effect resulting from reduction in the volume of trade.Answer to Problems6.a.When a nation imposes an optimum tariff,the trade partners welfare declines because of the lower volume of trade and the deterioration in its terms of trade.b.The trade partner is likely to retaliate and in the end both nat

49、ions are likely to lose because of the reduction in the volume of trade.Answer to Problems7.Even when the trade partner does not retaliate when one nation imposes the optimum tariff,the gains of the tariff-imposing nation are less than the losses of the trade partner,so that the world as a whole is

50、worse off than under free trade.It is in this sense that free trade maximizes world welfare.Answer to Problems8.a.The nominal tariff is calculated on the market price of the product or service.The rate of effective protection,on the other hand,is calculated on the value added in the nation.It is equ