1、1,第一章,1、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 aboveAnswer: d,2,2、The movement to free international trade is most likely to generate short-term unemployment in
2、 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 buyersAnswer: b,MULTIPLE-CHOICE QUESTIONS,3,3 How much physical output a worker producers in a
3、n 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 aboveAnswer: d,4,4 A firms _, relative to that of other firms, is generally regarded as the most important determinant of competitiveness
4、. a. Income level b. Tastes and preferences c. Environmental regulation d. ProductivityAnswer: d,5,5 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
5、 c. The utilization of the most efficient production methods d. Relatively high wage levels for all domestic workersAnswer: d,6,6 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. Nei
6、ther imports nor exports are necessaryAnswer: c,7,7 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 competitio
7、n facing home manufacturersAnswer: d,8,TRUE-FALSE QUESTIONS,1 The benefits of international trade accrue in the forms of lower domestic prices, development of more efficient methods and new products, and a greater range of consumption choices. True 2 In an open trading system, a country will import
8、those commodities that it produces at relatively low cost while exporting commodities that can be produced at relatively high cost. False,9,3 Although free trade provides benefits for consumers, it is often argued that import protection should be provided to domestic producers of strategic goods and
9、 materials vital to the nations security. True 4 In the long run, competitiveness depends on an industrys natural resources, its stock of machinery and equipment, and the skill of its workers in creating goods that people want to buy. True,10,5 If a nation has an open economy, it means that the nati
10、on allows private ownership of capital. False 6 Increased foreign competition tends to increase profits of domestic import-competing companies. False,11,第二章,1. The mercantilists would have objected to: a. Export promotion policies initiated by the government b. The use of tariffs or quotas to restri
11、ct imports c. Trade policies designed to accumulate gold and other precious metals d. International trade based on open markets Answer: d,12,2. Unlike the mercantilists, Adam Smith maintained that:,a. Trade benefits one nation only at the expense of another nation b. Government control of trade lead
12、s to maximum economic welfare c. All nations can gain from free international trade d. The worlds output of goods must remain constant over time Answer: c,13,3. Unlike Adam Smith, David Ricardos trading principle emphasizes the:,a. Demand side of the market b. Supply side of the market c. Role of co
13、mparative costs d. Role of absolute costsAnswer: c,14,4. 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 margi
14、nal rate of transformation for the product d. Lower opportunity cost of producing the product Answer: a,15,5. 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
15、the nations trading partner declines c. The nation can produce outside of its production possibilities curve d. The problem of unemployment is eliminated Answer: a,16,6. In a two-product, two-country world, international trade can lead to increases in:,a. Consumer welfare only if output of both prod
16、ucts 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 Answer: b,17,7. International trade is based on the no
17、tion 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 Answer: b,18,8 Ricardos theory of comparative advan
18、tage was of limited real-world validity because it was founded on the: a. Labor theory of value b. Capital theory of value c. Land theory of value d. Entrepreneur theory of value Answer: a,19,9. The Ricardian model of comparative advantage is based on all of the following assumptions except: a. Only
19、 two nations and two products b. Product quality varies among nations c. Labor is the only factor of production d. Labor can move freely within a nation Answer: b,20,TRUE-FALSE QUESTIONS,1. According to the mercantilists, a nations welfare would improve if it maintained a surplus of exports over imp
20、orts True 2. The trade theories of Adam Smith and David Ricardo viewed the determination of competitiveness from the demand side of the market. False,21,3. The principle of absolute advantage asserts that mutually beneficial trade can occur even if one nation is absolutely more efficient in the prod
21、uction of all goods. False 4. 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. False,22,5. Compared to Ricardian trade theory, modern trade theory provides a mo
22、re general view of comparative advantage since it is based on all factors of production rather than just labor. True 6. According to the principle of comparative advantage, an open trading system results in resources being channeled from uses of low productivity to those of high productivity. True,2
23、3,第三章,1. Which of the following is false concerning indifference curves? a. They illustrate how the nation ranks alternative consumption bundles b. Higher curves refer to more satisfaction c. They are negatively sloped, being bowed out away from the diagrams origin d. They reflect the tastes and pre
24、ferences of a consumer Answer: c,24,2. The amount of one good that is just sufficient to compensate the consumer for the loss of some amount of another good is referred to as: a. Absolute cost b. Comparative cost c. Marginal rate of transformation d. Marginal rate of substitution Answer: d,25,The in
25、troduction of community indifference curves into our trading example focuses attention on the nations:a. Income level b. Resource prices c. Tastes and preferences d. Productivity level Answer: c,26,Trade between two nations would not be possible if they have: a. Identical community indifference curv
26、es but different production possibilities curves b. Identical production possibilities curves but different community indifference curves c. Different production possibilities curves and different community indifference curves d. Identical production possibilities curves and identical community indi
27、fference curves Answer: d,27,The equilibrium prices and quantities established after trade are fully determinate if we know: a. The location of all countries indifference curves b. The shape of each countrys production possibilities curve c. The comparative costs of each trading partner d. The stren
28、gth of world supply and demand for each good Answer: d,28,The best explanation of the gains from trade that David Ricardo could provide was to describe only the outer limits within which the equilibrium terms of trade would fall. This is because Ricardos theory did not recognize how market prices ar
29、e influenced by: a. Demand conditions b. Supply conditions c. Business expectations d. Profit patterns Answer: a,29,TRUE-FALSE QUESTIONS,1. Modern trade theory recognizes that the pattern of world trade is governed by both demand conditions and supply conditions. Answer: True2. Because the Ricardian
30、 theory of comparative advantage was based only on a nations demand conditions, it could not fully explain the distribution of the gains from trade among trading partners. False,30,3. Although J. S. Mill recognized that the region of mutually beneficial trade is bounded by the cost ratios of two cou
31、ntries, it was not until David Ricardo developed the theory of reciprocal demand that the equilibrium terms of trade could be determined. False4. According to J. S. Mill, if we know the domestic demand expressed by both trading partners for both products, the equilibrium terms of trade can be define
32、d. True,31,5 The theory of reciprocal demand best applies when one country has a “large” economy and the other country has a “small” economy. False6. A nation benefits from international trade if it can achieve a higher indifference curve than it can in autarky. True,32,第四章,Which of the following su
33、ggests that a nation will export the commodity in the production of which a great deal of its relatively abundant and cheap factor is used? a. The Linder theory b. The product life cycle theory c. The MacDougall theory d. The Heckscher-Ohlin theory Answer: d,33,The Leontief paradox questioned the va
34、lidity of the theory of:a. Comparative advantage b. Factor endowments c. Overlapping demands d. Absolute advantageAnswer: b,34,Assume that Country A, in the absence of trade, finds itself relatively abundant in labor and relatively scarce in land. The factor endowment theory reasons that with free t
35、rade, the internal distribution of national income in Country A will change in favor of: a. Labor b. Land c. Both labor and land d. Neither labor nor land Answer: a,35,When considering the effects of transportation costs, the conclusions of our trade model must be modified. This is because transport
36、ation costs result in: a. Lower trade volume, higher import prices, smaller gains from trade b. Lower trade volume, lower import prices, smaller gains from trade c. Higher trade volume, higher import prices, smaller gains from trade d. Higher trade volume, lower import prices, greater gains from tra
37、de Answer: a,36,Assume the cost of transporting autos from Japan to Canada exceeds the pretrade price difference for autos between Japan and Canada. Trade in autos is: a. Impossible b. Possible c. Highly profitable d. Moderately profitableAnswer: a,37,Eli Heckscher and Bertil Ohlin are associated wi
38、th the theory of comparative advantage that stresses differences in: a. Income levels among countries b. Tastes and preferences among countries c. Resource endowments among countries d. Labor productivities among countries Answer: c,38,Hong Kong is relatively abundant in labor, while Canada is relat
39、ively abundant in capital. In both countries the production of shirts is relatively more labor intensive than the production of computers. According to the factor endowment theory, Hong Kong will have a (an): a. Absolute advantage in the production of shirts and computers b. Absolute advantage in th
40、e production of computers c. Comparative advantage in the production of shirts d. Comparative advantage in the production of computers Answer: c,39,A firm is said to enjoy economies of scale over the range of output for which the long-run average cost is: a. Increasing b. Constant c. Decreasing d. N
41、one of the aboveAnswer: c,40,Which of the following suggests that by widening the markets size, international trade can permit longer production runs for manufacturers, which leads to increasing efficiency? a. Economies of scale b. Diseconomies of scale c. Comparative cost theory d. Absolute cost th
42、eory Answer: a,41,TRUE-FALSE QUESTIONS,The Heckscher-Ohlin theory asserts that relative differences in labor productivity underlie comparative advantage. False The factor-endowment theory highlights the relative abundance of a nations resources as the key factor underlying comparative advantage. Tru
43、e,42,According to the factor-endowment theory, a nation will export that good for which a large amount of the relatively scarce resource is used. False The Heckscher-Ohlin theory suggests that land-abundant nations will export land-intensive goods while labor-abundant nations will export labor-inten
44、sive goods. True,43,The Heckscher-Ohlin theory emphasizes the role that demand plays in the creation of comparative advantage. False According to the factor-endowment theory, international specialization and trade cause a nations cheap resource to become cheaper and a nations expensive resource to b
45、ecome more expensive False,44,Because seasons in the Southern Hemisphere are opposite those in the Northern Hemisphere, one would expect intraindustry trade to occur in agricultural products.True,45,第五章,Suppose that the United States eliminates its tariff on steel imports, permitting foreign-produce
46、d steel to enter the U.S. market. Steel prices to U.S. consumers would be expected to: a. Increase, and the foreign demand for U.S. exports would increase b. Decrease, and the foreign demand for U.S. exports would increase c. Increase, and the foreign demand for U.S. exports would decrease d. Decrea
47、se, and the foreign demand for U.S. exports would decrease Answer: b,46,A lower tariff on imported aluminum would most likely benefit:,a. Foreign producers at the expense of domestic consumers b. Domestic manufacturers of aluminum c. Domestic consumers of aluminum d. Workers in the domestic aluminum
48、 industry Answer: c,47,The redistribution effect of an import tariff is the transfer of income from the domestic:,a. Producers to domestic buyers of the good b. Buyers to domestic producers of the good c. Buyers to the domestic government d. Government to the domestic buyers Answer: b,48,Which of th
49、e following is true concerning a specific tariff?,a. It is exclusively used by the U.S. in its tariff schedules b. It refers to a flat percentage duty applied to a goods market value c. It is plagued by problems associated with assessing import product values d. It affords less protection to home producers during eras of rising prices Answer: d,49,The principal benefit of tariff protection goes to:,a. Domestic consumers of the good produced b. Domestic producers of the good produced c. Foreign producers of the good produced d. Foreign consumers of the good produced Answer: b,
