2023年6月24日发(作者：)

Exercises of International Trade for chapter1-4

(Part One)

1. Benefits of international trade are limited to

A. tangible good

B. intangible goods

C. all goods but not services

D. services.

E. None of the above

2. Because the Constitution forbids restraints on interstate trade,

A. the U.S. may not impose tariffs on imports from NAFTA countries.

B. the U.S. may not affect the international value of the $ U.S.

C. the U.S. may not put restraints on foreign investments in California if it

involves a financial intermediary in New York State.

D. the U.S. may not impose export duties.

E. None of the above

3. 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

4. Since 1994, trade rules have been enforced by

A. the WTO

B. the G10.

C. the GATT

D. The U.S. Congress

E. None of the above.

5. Trade theorists have proven that the gains from trade

A. must raise the economic welfare of every country engaged in trade.

B. must raise the economic welfare of everyone in every country engaged in

trade.

C. must harm owners of "specific" factors of production

D. will always help "winners" by an amount exceeding the losses of "losers."

E. None of the above.

6. The two neighbors of the United States do a lot more trade with the United

States than European economies of equal size.

A. This contradicts predictions from gravity models.

B. This is consistent with predictions from gravity models.

C. This is relevant to any inferences that may be drawn from gravity models.

D. This is because these neighboring countries have exceptionally large GDPs.

E. None of the above.

7. Since World War II, the likelihood that any single item in the typical

consumption basket of a consumer in the U.S. originated outside of the U.S.

A. remained constant.

B. increased.

C. decreased.

D. fluctuated widely with no clear trend.

E. both A and D above.

8. 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

9. 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.

10. 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

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.

11. 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.

12. 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.

13. 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.

14. 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.

15. In the 2-factor, 2 good Heckscher-Ohlin model, an influx of workers from

across the border would

A. move the point of production along the production possibility curve.

B. shift the production possibility curve outward, and increase the production of

both goods.

C. shift the production possibility curve outward and decrease the production of

the labor-intensive product.

D. shift the production possibility curve outward and decrease the production of

the capital-intensive product.

E. None of the above.

16. The slope of a country's PPF reflects

A. the opportunity cost of product S in terms of product T.

B. the opportunity cost of T in terms of money prices. C. the opportunity cost of S or T in terms of S.

D. Both A and B.

E. Both A and C.

17. In the 2-factor, 2 good Heckscher-Ohlin model, a change from autarky (no

trade) to trade will benefit the owners of

A. capital.

B. the relatively abundant factor of production.

C. the relatively scarce factor of production.

D. the relatively inelastic factor of production.

E. the factor of production with the largest elasticity of substitution.

18. The Hechscher-Ohlin model states that a country will have a comparative

advantage in the good or service whose production is relatively intensive in

the ________ with which the country is relatively abundant.

A. tastes

B. technology

C. factor of production

D. opportunity cost

E. scale economy

19. As opposed to the Ricardian model of comparative advantage, the

assumption of diminishing returns in the Heckscher-Ohlin model means that

the probability is greater that with trade

A. countries will not be fully specialized in one product.

B. countries will benefit from free international trade.

C. countries will consume outside their production possibility frontier.

D. comparative advantage is primarily supply related.

E. None of the above.

20. The following are all assumptions that must be accepted in order to apply the

Heckscher-Ohlin Theory, except for one

A. Countries differ in their endowments of factors of production.

B. Countries differ in their technologies.

C. There are two factors of production.

D. Production is subject to constant returns to scale.

E. One product always requires more machines per worker in its production than

does the other product.

21. In international-trade equilibrium in the Heckscher-Ohlin model,

A. the capital rich country will charge less for the capital intensive good than the

price paid by the capital poor country for the capital-intensive good.

B. the capital rich country will charge the same price for the capital intensive

good as that paid for it by the capital poor country.

C. the capital rich country will charge more for the capital intensive good than

the price paid by the capital poor country for the capital-intensive good.

D. the workers in the capital rich country will earn more than those in the poor

country.

E. the workers in the capital rich country will earn less than those in the poor

country.

22. The Heckscher-Ohlin model predicts all of the following except

A. which country will export which product

B. which factor of production within each country will gain from trade.

C. the volume of trade.

D. that wages will tend to become equal in both trading countries.

E. None of the above.

23. If Australia has more land per worker, and Belgium has more capital per

worker, then if trade were to open up between these two countries,

A. the real income of capital owners in Australia would rise.

B. the real income of labor in Australia would clearly rise.

C. the real income of labor in Belgium would clearly rise.

D. the real income of landowners in Belgium would fall.

E. the real incomes of capital owners in both countries would rise.

24. The reason trade clearly benefits a country is that

A. it raises the real income of the more productive elements in society.

B. it lowers the real income of the less productive elements in society.

C. it increases the levels of consumption of everyone.

D. it increases society's consumption choices.

E. None of the above.

25. International trade has strong effects on income distributions. Therefore,

international trade

A. is beneficial to everyone in both trading countries.

B. will tend to hurt one trading country.

C. will tend to hurt some groups in each trading country.

D. will tend to hurt everyone in both countries.

E. will be beneficial to all those engaged in international trade.