国际贸易理论与课堂测试1~3章

第一次课堂测试（ch01-ch03）

1) Historians of economic thought often describe ________ written by ________ and published in ________ as the first real exposition of an economic model. A) \"Of the Balance of Trade,\" David Hume, 1776 B) \"Wealth of Nations,\" David Hume, 1758 C) \"Wealth of Nations,\" Adam Smith, 1758 D) \"Wealth of Nations,\" Adam Smith, 1776

E) \"Of the Balance of Trade,\" David Hume, 1758

2) The United States is less dependent on trade than most other countries because A) the United States is a relatively large country. B) the United States is a \"Superpower.\"

C) the military power of the United States makes it less dependent on anything. D) the United States invests in many other countries. E) many countries invest in the United States.

3) Which of the following is not a major concern of international economic theory? A) protectionism

B) the balance of payments C) exchange rate determination

D) Bilateral trade relations with China E) None of the above

4) Who sells what to whom

A) has been a major preoccupation of international economics. B) is not a valid concern of international economics.

C) is not considered important for government foreign trade policy since such decisions are made in the private competitive market.

D) is determined by political rather than economic factors. E) None of the above

5) International economics can be divided into two broad sub-fields A) macro and micro.

B) developed and less developed. C) monetary and barter.

D) international trade and international money. E) static and dynamic.

6) The gravity model offers a logical explanation for the fact that

A) trade between Asia and the U.S. has grown faster than NAFTA trade. B) trade in services has grown faster than trade in goods. .

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C) trade in manufactures has grown faster than in agricultural products.

D)Intra-European Union trade exceeds International Trade of the European Union. E) None of the above.

7) Why does the gravity model work?

A) Large economies became large because they were engaged in international trade.

B) Large economies have relatively large incomes, and hence spend more on government promotion of trade and investment.

C) Large economies have relatively larger areas which raises the probability that a productive activity will take place within the borders of that country.

D) Large economies tend to have large incomes and tend to spend more on imports. E) None of the above.

8) Since World War II, the relative importance of raw materials, including oil, in total world trade A) remained constant. B) increased. C) decreased.

D) fluctuated widely with no clear trend E) both A and D above.

9) In the current Post-Industrial economy, international trade in services (including banking and financial services)

A) dominates world trade. B) does not exist. C) is relatively small. D) is relatively stagnant. E) None of the above.

10) In the pre-World War I period, the United Kingdom exported primarily A) manufactured goods. B) services.

C) primary products including agricultural. D) technology intensive products. E) None of the above.

11) In the pre-World War I period, the United Kingdom imported primarily A) manufactured goods. B) services.

C) primary products including agricultural. D) technology intensive products. E) None of the above.

12) In the present, most of the exports from China are in A) manufactured goods. B) services.

C) primary products including agricultural. D) technology intensive products. E) None of the above.

13) Which of the following does not explain the extent of trade between Ireland and the U.S.? .

. A) Historical ties

B) Cultural Linguistic ties C) Gravity model

D) Multinational Corporations E) None of the above.

14) Trade between two countries can benefit both countries if

A) each country exports that good in which it has a comparative advantage. B) each country enjoys superior terms of trade.

C) each country has a more elastic demand for the imported goods. D) each country has a more elastic supply for the exported goods. E) Both C and D.

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15)Trade between two countries can benefit both countries if

A) each country exports that good in which it has a comparative advantage.

B) each country enjoys superior terms of trade.

C) each country has a more elastic demand for the imported goods.

D) each country has a more elastic supply for the exported goods.

E) Both C and D.

16) In order to know whether a country has a comparative advantage in the production of one particular

product we need information on at least ________ unit labor requirements A) one B) two

C) three D) four E) five

17) A country engaging in trade according to the principles of comparative advantage gains from trade

because it

A) is producing exports indirectly more efficiently than it could alternatively.

B) is producing imports indirectly more efficiently than it could domestically.

C) is producing exports using fewer labor units.

D) is producing imports indirectly using fewer labor units.

E) None of the above.

18) Given the information in the table above, if it is ascertained that Foreign uses prison-slave labor to

produce its exports, then home should A) export cloth.

B) export widgets.

C) export both and import nothing.

D) export and import nothing.

E) All of the above.

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19) Given the information in the table above, if the Home economy suffered a meltdown, and the Unit Labor

Requirements doubled to 30 for cloth and 60 for widgets then home should A) export cloth.

B) export widgets.

C) export both and import nothing.

D) export and import nothing.

E) All of the above.

20) The earliest statement of the principle of comparative advantage is associated with

A) David Hume.

B) David Ricardo.

C) Adam Smith.

D) Eli Heckscher.

E) Bertil Ohlin.

21) The Gains from Trade associated with the principle of Comparative Advantage depends on

A) the trade partners must differ in technology or tastes.

B) there can be no more goods traded than the number of trade partners.

C) there may be no more trade partners than goods traded.

D) All of the above.

E) None of the above.

22) The Ricardian model demonstrates that

A) trade between two countries will benefit both countries.

B) trade between two countries may benefit both regardless of which good each exports.

C) trade between two countries may benefit both if each exports the product in which it has a

comparative advantage.

D) trade between two countries may benefit one but harm the other.

E) None of the above.

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23) Given the information in the table above

A) neither country has a comparative advantage.

B) Home has a comparative advantage in cloth.

C) Foreign has a comparative advantage in cloth.

D) Home has a comparative advantage in widgets.

E) Home has a comparative advantage in both products.

24) Given the information in the table above, if wages were to double in Home, then Home should

A) export cloth.

B) export widgets.

C) export both and import nothing.

D) export and import nothing.

E) All of the above.

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25) Given the information in the table above

A) neither country has a comparative advantage.

B) Home has a comparative advantage in cloth.

C) Foreign has a comparative advantage in cloth.

D) Foreign has a comparative advantage in widgets.

E) Home has a comparative advantage in both products.

26) Given the information in the table above, the opportunity cost of cloth in terms of widgets in Foreign is if

it is ascertained that Foreign uses prison-slave labor to produce its exports, then home should A) export cloth.

B) export widgets.

C) export both and import nothing.

D) export and import nothing.

E) All of the above.

27) Given the information in the table above, if wages were to double in Home, then Home should

A) export cloth.

B) export widgets.

C) export both and import nothing.

D) export and import nothing.

E) All of the above.

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28) Given the information in the table above, if the world equilibrium price of widgets were 4 Cloths, then

A) both countries could benefit from trade with each other.

B) neither country could benefit from trade with each other.

C) each country will want to export the good in which it enjoys comparative advantage.

D) neither country will want to export the good in which it enjoys comparative advantage.

E) both countries will want to specialize in cloth.

29) Given the information in the table above, if the world equilibrium price of widgets were 40 cloths, then

A) both countries could benefit from trade with each other.

B) neither country could benefit from trade with each other.

C) each country will want to export the good in which it enjoys comparative advantage.

D) neither country will want to export the good in which it enjoys comparative advantage.

E) both countries will want to specialize in cloth.

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30) 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.

E) None of the above.

31) As a result of trade, specialization in the Ricardian model tends to be

A) complete with constant costs and with increasing costs.

B) complete with constant costs and incomplete with increasing costs.

C) incomplete with constant costs and complete with increasing costs.

D) incomplete with constant costs and incomplete with increasing costs.

E) None of the above.

32) As a result of trade between two countries which are of completely different economic sizes,

specialization in the Ricardian 2X2 model tends to be A) incomplete in both countries

B) complete in both countries

C) complete in the small country but incomplete in the large country

D) complete in the large country but incomplete in the small country

E) None of the above.

33) A nation engaging in trade according to the Ricardian model will find its consumption bundle

A) inside its production possibilities frontier.

B) on its production possibilities frontier.

C) outside its production possibilities frontier.

D) inside its trade-partner's production possibilities frontier.

E) on its trade-partner's production possibilities frontier.

34) In the Ricardian model, if a country's trade is restricted, this will cause all except which?

A) limit specialization and the division of labor

B) reduce the volume of trade and the gains from trade

C) cause nations to produce inside their production possibilities curves

D) may result in a country producing some of the product of its comparative disadvantage

E) None of the above.

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35) If a very small country trades with a very large country according to the Ricardian model, then

A) the small country will suffer a decrease in economic welfare.

B) the large country will suffer a decrease in economic welfare.

C) the small country only will enjoy gains from trade.

D) the large country will enjoy gains from trade.

E) None of the above.

36) If the world terms of trade for a country are somewhere between the domestic cost ratio of H and that of

F, then

A) country H but not country F will gain from trade.

B) country H and country F will both gain from trade.

C) neither country H nor F will gain from trade.

D) only the country whose government subsidizes its exports will gain.

E) None of the above.

37) If the world terms of trade equal those of country F, then

A) country H but not country F will gain from trade.

B) country H and country F will both gain from trade.

C) neither country H nor F will gain from trade.

D) only the country whose government subsidizes its exports will gain.

E) None of the above.

38) If the world terms of trade equal those of country H, then

A) country H but not country F will gain from trade.

B) country H and country F will both gain from trade.

C) neither country H nor F will gain from trade.

D) only the country whose government subsidizes its exports will gain.

E) None of the above.

39) According to Ricardo, a country will have a comparative advantage in the product in which its

A) labor productivity is relatively low.

B) labor productivity is relatively high.

C) labor mobility is relatively low.

D) labor mobility is relatively high.

E) None of the above.

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40) Assume that labor is the only factor of production and that wages in the United States equal $20 per hour

while wages in Japan are $10 per hour. Production costs would be lower in the United States as compared to Japan if

A) U.S. labor productivity equaled 40 units per hour and Japan's 15 units per hour.

B) U.S. productivity equaled 30 units per hour whereas Japan's was 20.

C) U.S. labor productivity equaled 20 and Japan's 30.

D) U.S. labor productivity equaled 15 and Japan's 25 units per hour.

E) None of the above.

41) If two countries engage in Free Trade following the principles of comparative advantage, then

A) neither relative prices nor relative marginal costs (marginal rates of transformation-MRTs) in one

country will equal those in the other country.

B) both relative prices and MRTs will become equal in both countries.

C) relative prices but not MRTs will become equal in both countries.

D) MRTs but not relative prices will become equal in both countries.

E) None of the above.

42) Let us define the real wage as the purchasing power of one hour of labor. In the Ricardian 2X2 model, if

two countries under autarky engage in trade then

A) the real wage will not be affected since this is a financial variable.

B) the real wage will increase only if a country attains full specialization.

C) the real wage will increase in one country only if it decreases in the other.

D) the real wage will rise in both countries.

E) None of the above.

43) In a two country and two product Ricardian model, a small country is likely to benefit more than the large

country because

A) the large country will wield greater political power, and hence will not yield to market signals.

B) the small country is less likely to trade at price equal or close to its autarkic (domestic) relative

prices.

C) the small country is more likely to fully specialize.

D) the small country is less likely to fully specialize.

E) None of the above.

44) In the Ricardian model, comparative advantage is not likely be due to

A) scale economies.

B) home product taste bias.

C) greater capital availability per worker.

D) All of the above.

E) None of the above.

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45) If a production possibilities frontier is bowed out (concave to the origin), then production occurs under

conditions of

A) constant opportunity costs.

B) increasing opportunity costs.

C) decreasing opportunity costs.

D) infinite opportunity costs.

E) None of the above.

46) If the production possibilities frontier of one the trade partners (\"Country A\") is bowed out (concave to the

origin), then increased specialization in production by that country will A) increase the economic welfare of both countries.

B) increase the economic welfare of only Country A.

C) decrease the economic welfare of Country A.

D) decrease the economic welfare of Country B.

E) None of the above.

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47) If two countries have identical production possibility frontiers, then trade between them is not likely if

A) their supply curves are identical.

B) their cost functions are identical.

C) their demand conditions are identical.

D) their incomes are identical.

E) None of the above. 48) If two countries have identical production possibility frontiers, then trade between them is not likely if

A) their supply curves are identical.

B) their cost functions are identical.

C) their demand functions differ.

D) their incomes are identical.

E) None of the above.

49) If one country's wage level is very high relative to the other's (the relative wage exceeding the relative

productivity ratios), then if they both use the same currency A) neither country has a comparative advantage.

B) only the low wage country has a comparative advantage.

C) only the high wage country has a comparative advantage.

D) consumers will still find trade worth while from their perspective.

E) None of the above.

50) If one country's wage level is very high relative to the other's (the relative wage exceeding the relative

productivity ratios), then

A) it is not possible that producers in each will find export markets profitable.

B) it is not possible that consumers in both countries will enhance their respective welfares through

imports.

C) it is not possible that both countries will find gains from trade.

D) it is possible that both will enjoy the conventional gains from trade.

E) None of the above.

51) If one country's wage level is very high relative to the other's (the relative wage exceeding the relative

productivity ratios) then it is probable that

A) free trade will improve both countries' welfare.

B) free trade will result in no trade taking place.

C) free trade will result in each country exporting the good in which it enjoys comparative advantage.

D) free trade will result in each country exporting the good in which it suffers the greatest comparative

disadvantage.

E) None of the above.

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52) In a two-country, two-product world, the statement \"Germany enjoys a comparative advantage over

France in autos relative to ships\" is equivalent to

A) France having a comparative advantage over Germany in ships.

B) France having a comparative disadvantage compared to Germany in autos and ships.

C) Germany having a comparative advantage over France in autos and ships.

D) France having no comparative advantage over Germany.

E) None of the above.

53) If the United States' production possibility frontier was flatter to the widget axis, whereas Germany's was

flatter to the butter axis, we know that

A) the United States has no comparative advantage

B) Germany has a comparative advantage in butter.

C) the U.S. has a comparative advantage in butter.

D) Not enough information is given.

E) None of the above.

54) Suppose the United States' production possibility frontier was flatter to the widget axis, whereas

Germany's was flatter to the butter axis. We now learn that the German mark sharply depreciates against the U.S. dollar. We now know that

A) the United States has no comparative advantage

B) Germany has a comparative advantage in butter.

C) the United States has a comparative advantage in butter.

D) Not enough information is given.

E) None of the above.

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55) Suppose the United states production possibility frontier was flatter to the widget axis, whereas Germany's

was flatter to the butter axis. We now learn that the German wage doubles, but U.S. wages do not change at all. We now know that

A) the United States has no comparative advantage.

B) Germany has a comparative advantage in butter.

C) the United States has a comparative advantage in butter.

D) Not enough information is given.

E) None of the above.

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56) Which of the following statements is true?

A) Free trade is beneficial only if your country is strong enough to stand up to foreign competition.

B) Free trade is beneficial only if your competitor does not pay unreasonably low wages.

C) Free trade is beneficial only if both countries have access to the same technology.

D) All of the above.

E) None of the above.

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57) Mahatma Ghandi exhorted his followers in India to promote economic welfare by decreasing imports. This

approach

A) makes no sense.

B) makes no economic sense.

C) is consistent with the the Ricardian model of comparative advantage.

D) is not consistent with the Ricardian model of comparative advantage.

E) None of the above.

58) The Country of Rhozundia is blessed with rich copper deposits. The cost of Copper produced (relative to

the cost of Widgets produced) is therefore very low. From this information we know that A) Rhozundia has a comparative advantage in Copper

B) Rhozundia should export Copper and import Widgets

C) Rhozundia should export Widgets and export Copper

D) Both A and B are true.

E) None of the above.

59) We know that in antiquity, China exported silk because no-one in any other country knew how to produce

this product. From this information we learn that A) China enjoyed a comparative advantage in silk.

B) China enjoyed an absolute advantage, but not a comparative advantage in silk.

C) no comparative advantage exists because technology was not diffused.

D) China should have exported silk even though it had no comparative advantage.

E) None of the above.

60) The pauper labor theory, and the exploitation argument

A) are theoretical weaknesses that limit the applicability of the Ricardian concept of comparative

advantage.

B) are theoretically irrelevant to the Ricardian model, and do not limit its logical cogency.

C) are not relevant because the Ricardian model is based on the labor theory of value.

D) are not relevant because the Ricardian model allows for different technologies in different countries.

E) None of the above.

61) If labor productivities were exactly proportional to wage levels internationally, this would

A) not negate the logical basis for trade in the Ricardian model. B) render the Ricardian model theoretically correct but practically useless.

C) negate the logical basis for trade in the Ricardian model.

D) negate the applicability of the Ricardian model if the number of products were greater than the

number of trading partners. E) None of the above.

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62) The multi-good (2-country) model differs from the two country, two product model, in that in the former,

A) the relative wage ratio will determine the pattern of trade ( which good is exported by which country.

B) one cannot determine which country will export which product given only labor productivity data.

C) full specialization is less likely to hold in equilibrium.

D) All of the above.

E) None of the above.

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63) If transportation costs are especially high for Widgets in a Ricardian 2X2 model in which Country A enjoys a

comparative advantage, then

A) Country B must also enjoy a comparative advantage in Widgets.

B) Country B may end up exporting Widgets.

C) Country A may switch to having a comparative advantage in the other good.

D) All of the above.

E) None of the above.

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