国经课后习题

null第一章第一章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 above Answer: dMULTIPLE-CHOICE QUESTIONSMULTIPLE-CHOICE QUESTIONS2、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 Answer: bnull3 How much physical output a worker producers in an hour’s work depends on: a. The worker’s motivation and skill b. The technology, plant, and equipment in use c. How easy the product is to manufacture d. All of the above Answer: dnull4 A firm’s __________, 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 Answer: dnull5 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 Answer: dnull6 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 Answer: cnull7 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 Answer: dTRUE-FALSE QUESTIONSTRUE-FALSE QUESTIONS1 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 those commodities that it produces at relatively low cost while exporting commodities that can be produced at relatively high cost. Falsenull3 Although free trade provides benefits for consumers, it is often argued that import protection should be provided to domestic producers of strategic goods and materials vital to the nation’s security. True 4 In the long run, competitiveness depends on an industry’s natural resources, its stock of machinery and equipment, and the skill of its workers in creating goods that people want to buy. Truenull5 If a nation has an open economy, it means that the nation allows private ownership of capital. False 6 Increased foreign competition tends to increase profits of domestic import-competing companies. False第二章 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 restrict imports c. Trade policies designed to accumulate gold and other precious metals d. International trade based on open markets Answer: d2. Unlike the mercantilists, Adam Smith maintained that: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 world’s output of goods must remain constant over time Answer: c3. Unlike Adam Smith, David Ricardo’s trading principle emphasizes the:3. Unlike Adam Smith, David Ricardo’s 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 Answer: c4. When a nation requires fewer resources than another nation to produce a product, the nation is said to have a (an):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 marginal rate of transformation for the product d. Lower opportunity cost of producing the product Answer: a5. According to the principle of comparative advantage, specialization and trade increase a nation’s total output since:5. According to the principle of comparative advantage, specialization and trade increase a nation’s total output since:a. Resources are directed to their highest productivity b. The output of the nation’s trading partner declines c. The nation can produce outside of its production possibilities curve d. The problem of unemployment is eliminated Answer: a6. In a two-product, two-country world, international trade can lead to increases in:6. 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 Answer: b7. International trade is based on the notion that:7. 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 country’s exports should always exceed its imports Answer: bnull8 Ricardo’s theory of comparative advantage 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: anull9. The Ricardian model of comparative advantage is based on all of the following assumptions except: a. Only 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: bTRUE-FALSE QUESTIONSTRUE-FALSE QUESTIONS1. According to the mercantilists, a nation’s welfare would improve if it maintained a surplus of exports over imports True 2. The trade theories of Adam Smith and David Ricardo viewed the determination of competitiveness from the demand side of the market. Falsenull3. 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. 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. Falsenull5. Compared to Ricardian trade theory, modern trade theory provides a more 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第三章第三章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 diagram’s origin d. They reflect the tastes and preferences of a consumer Answer: cnull2. 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: dnullThe introduction of community indifference curves into our trading example focuses attention on the nation’s: a. Income level b. Resource prices c. Tastes and preferences d. Productivity level Answer: cnullTrade between two nations would not be possible if they have: a. Identical community indifference curves 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 indifference curves Answer: dnullThe 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 country’s production possibilities curve c. The comparative costs of each trading partner d. The strength of world supply and demand for each good Answer: dnullThe 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 Ricardo’s theory did not recognize how market prices are influenced by: a. Demand conditions b. Supply conditions c. Business expectations d. Profit patterns Answer: aTRUE-FALSE QUESTIONSTRUE-FALSE QUESTIONS1. Modern trade theory recognizes that the pattern of world trade is governed by both demand conditions and supply conditions. Answer: True 2. Because the Ricardian theory of comparative advantage was based only on a nation’s demand conditions, it could not fully explain the distribution of the gains from trade among trading partners. Falsenull3. Although J. S. Mill recognized that the region of mutually beneficial trade is bounded by the cost ratios of two countries, it was not until David Ricardo developed the theory of reciprocal demand that the equilibrium terms of trade could be determined. False 4. 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 defined. Truenull5 The theory of reciprocal demand best applies when one country has a “large” economy and the other country has a “small” economy. False 6. A nation benefits from international trade if it can achieve a higher indifference curve than it can in autarky. True第四章第四章Which of the following suggests 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: dnullThe Leontief paradox questioned the validity of the theory of: a. Comparative advantage b. Factor endowments c. Overlapping demands d. Absolute advantage Answer: bnullAssume 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 trade, 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: anullWhen considering the effects of transportation costs, the conclusions of our trade model must be modified. This is because transportation 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 trade Answer: anullAssume 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 profitable Answer: anullEli Heckscher and Bertil Ohlin are associated with 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: cnullHong Kong is relatively abundant in labor, while Canada is relatively 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 the production of computers c. Comparative advantage in the production of shirts d. Comparative advantage in the production of computers Answer: cnullA 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. None of the above Answer: cnullWhich of the following suggests that by widening the market’s 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 theory Answer: aTRUE-FALSE QUESTIONSTRUE-FALSE QUESTIONSThe Heckscher-Ohlin theory asserts that relative differences in labor productivity underlie comparative advantage. False The factor-endowment theory highlights the relative abundance of a nation’s resources as the key factor underlying comparative advantage. TruenullAccording 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-intensive goods. TruenullThe 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 nation’s cheap resource to become cheaper and a nation’s expensive resource to become more expensive FalsenullBecause seasons in the Southern Hemisphere are opposite those in the Northern Hemisphere, one would expect intraindustry trade to occur in agricultural products. True第五章第五章Suppose that the United States eliminates its tariff on steel imports, permitting foreign-produced 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. Decrease, and the foreign demand for U.S. exports would decrease Answer: bA lower tariff on imported aluminum would most likely benefit: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 industry Answer: cThe redistribution effect of an import tariff is the transfer of income from the domestic: 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: bWhich of the following is true concerning a specific tariff? Which of the 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 good’s 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: dThe principal benefit of tariff protection goes to: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: bThe deadweight loss of a tariff:The deadweight loss of a tariff:a. Is a social loss since it promotes inefficient production b. Is a social loss since it reduces the revenue for the government c. Is not a social loss because society as a whole doesn’t pay for the loss d. Is not a social loss since only business firms suffer revenue losses Answer: anullWhich of the following is a fixed percentage of the value of an imported product as it enters the country? a. Specific tariff b. Ad valorem tariff c. Nominal tariff d. Effective tariff Answer: bnullA tax of 20 cents per unit of imported cheese would be an example of: a. Compound tariff b. Effective tariff c. Ad valorem tariff d. Specific tariff Answer: d Free traders point out that: Free traders point out that: a. There is usually an efficiency gain from having tariffs b. There is usually an efficiency loss from having tariffs c. Producers lose from tariffs at the expense of consumers d. Producers lose from tariffs at the expense of the government Answer: bA decrease in the import tariff will result in: A decrease in the import tariff will result in: a. An increase in imports but a decrease in domestic production b. A decrease in imports but an increase in domestic production c. An increase in price but a decrease in quantity purchased d. A decrease in price and a decrease in quantity purchased Answer: aTRUE-FALSE QUESTIONSTRUE-FALSE QUESTIONSWith a compound tariff, a domestic importer of an automobile might be required to pay a duty of $200 plus 4 percent of the value of the automobile. TurenullDuring a business recession, when cheaper products are purchased, a specific tariff provides domestic producers a greater amount of protection against import-competing goods. Ture Bonded warehouses and foreign trade zones have the effect of allowing domestic importers to postpone and prorate over time their import duty obligations. TurenullProducer surplus is the revenue producers receive over and above the minimum necessary for production. Ture For a “small” country, a tariff raises the domestic price of an imported product by the full amount of the duty. TurenullA “large” country, that levies a tariff on imports, cannot improve the terms at which it trades with other countries. False For a “large” country, a tariff on an imported product may be partially absorbed by the domestic consumer via a higher purchase price and partially absorbed by the foreign producer via a lower export price. Ture第七章第七章The World Trade Organization was established by the __________ of multilateral trade negotiations. a. Kennedy Round b. Tokyo Round c. Uruguay Round d. Clinton Round Answer: cnullThe Export-Import Bank of the United States encourages American firms to sell overseas by providing direct loans and loan guarantees to foreign purchasers of American goods. To American firms, this represents a (an): a. Specific subsidy b. Ad valorem subsidy c. Domestic subsidy d. Export subsidy Answer: dnullThe Smoot-Hawley Tariff Act of 1930 has generally been associated with: a. Falling tariffs b. Increases in the volume of trade c. Intensifying the worldwide depression d. Efforts to liberalize nontariff trade barriers Answer: cnullUnder U.S. commercial policy, which clause permits the modification of a trade liberalization agreement on a temporary basis if serious injury occurs to domestic producers as a result of the agreement? a. Adjustment assistance clause b. Escape clause c. Most-favored-nation clause d. Reciprocal-trade clause Answer: bnullThe General Agreement on Tariffs and Trade and its successor, the World Trade Organization, have resulted in: a. Termination of export subsidies applied to manufactured goods b. Termination of import tariffs applied to manufactured goods c. Encouragement of beggar-thy-neighbor policies d. Reductions in trade barriers via multilateral negotiations Answer: dnullThroughout the post-World War II era, the importance of tariffs as a trade barrier has: a. Increased b. Decreased c. Remained the same d. None of the above Answer: bnullDuring the past fo