【国际经济学专题考试试卷十五】Monopoly

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国际经济学测试题

国际经济学测试题1一、单项选择（将答案填在下面的表格内，1’×10=10’)1．重商主义者认为国际贸易( )。

A．是一种双赢行为B。

对其中的强国有利C．对其中的弱国有利 D. 是一种零和行为2．斯密的绝对优势理论假定增加某种产品的生产所放弃的另一种产品生产的代价是（)。

A．递增的B。

递减的C. 不变的D。

不确定的3．如果说一国的资本要素比较丰裕，就意味着（）。

A. 该国的资本要素总量较多B. 该国的W/R的值较大C。

该国的K/L的值较小D。

该国的生产中较多使用技术4．根据特定要素模型，国际贸易的受损者为（）.A。

进口竞争部门的特定要素所有者B. 进口竞争部门的流动要素所有者C. 出口部门的特定要素所有者D。

出口部门的流动要素所有者5．根据产品生命周期理论,发明国的新产品出口（）。

A. 在产品问世的时候即已开始B。

贯穿整个生命周期C。

是一个先增加然后逐渐减少的过程D。

以上三者都正确6. 在局部均衡分析中，与小国相比，大国征收关税的主要不同在于（）。

A. 保护效应更明显B。

消费效应更明显C。

能够改善贸易条件 D. 对政府税收没有影响7．如果一国在征收进口税时，对最终产品征收的关税低于中间产品,则可以使关税的实际保护效果（).A. 增大B. 变小C。

没有影响D。

无法判断8．购买力平价理论的基础是（）.A。

粘性价格的存在B。

货币数量理论C。

马歇尔－勒纳条件D。

一价定律9．根据吸收分析法，贬值一定会（）.A. 导致国内总收入的增加B. 改善国际收支C. 促使国内货币供求重新平衡D. 上述说法都不对10. 根据斯旺图示，用来调节外部均衡的手段是( ）.A。

支出转换政策B。

支出调整政策C。

本国的货币政策D。

本国的财政政策二、多项选择（将答案填在下面的表格内，1’×10=10’）1. 能够解释二战以后国际贸易流向新格局的理论包括（）。

A．规模经济理论B。

产业内贸易理论C．产品差异化理论D。

需求偏好相似理论E．要素禀赋理论2。

国际经济学试卷试题包括答案.docx

《国际经济学》选择题汇总版（附答案）Ch1-Ch31.The United States is less dependent on trade than most other countries becauseA)the United States is a relatively large country with diverse resources.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.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)the U.S. may not disrupt commerce between Florida and Hawaii.3.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.4.International monetary analysis focuses onA)the real side of the international economy.B)the international trade side of the international economy.C)the international investment side of the international economy.D)the issues of international cooperation between Central Banks.E)the monetary side of the international economy, such as currency exchange.5.The gravity model offers a logical explanation for the fact thatA)trade between Asia and the U.S. has grown faster than NAFTA trade.B) trade in services has grown faster than trade in goods.C) trade in manufactures has grown faster than in agricultural products.D) Intra-European Union trade exceeds international trade by the EuropeanUni on.E) the U.S. trades more with Western Europe than it does with Canada.6.The gravity model explains whyA)trade between Sweden and Germany exceeds that between Sweden and Spain.B)countries with oil reserves tend to export oil.C)capital rich countries export capital intensive products.D)intra-industry trade is relatively more important than other forms of tradebetween neighboringcountries.E)European countries rely most often on natural resources.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 governm ent promotion of trade and investment.C)Large economies have relatively larger areas which raises the probability that a pro ductive activity will take place within the borders of that country.D)Large economies tend to have large incomes and tend to spend more on impor ts.E) Large economies tend to avoid trading with small economies.8.We see that the Netherlands, Belgium, and Ireland trade considerably more with the United States than with many other countries.A)This is explained by the gravity model, since these are all large countries.B)This is explained by the gravity model, since these are all small countries.C)This fails to be consistent with the gravity model, since these are smallcountri es.D)This fails to be consistent with the gravity model, since these are large countries.E)This is explained by the gravity model, since they do not share borders.9.In the present, most of the exports from Chinaare A) manufactured goods.B) services.C)primary products including agricultural.D) technology intensive products.E) overpriced by world market standards.10.A country engaging in trade according to the principles of comparative advantage gains from trade because itA) 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) is producing exports while outsourcing services.11.The Ricardian model attributes the gains from trade associated with the principle o f comparative advantage result toA) differences in technology.B)differences in preferences.C)differences in labor productivity.D)differences in resources.E)gravity relationships among countries.12. A nation engaging in trade according to the Ricardian model will find itsconsump tion bundleA)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.13.Assume that labor is the only factor of production and that wages in the United Sta tes 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 ifA)U.S. labor productivity equaled 40 units per hour and Japan's 15 units per hour.B)U.S. labor productivity equaled 30 units per hour and Japan's 20 units per hour.C)U.S. labor productivity equaled 20 units per hour and Japan's 30 units per hour.D)U.S. labor productivity equaled 15 units per hour and Japan's 25 units per hour.E)U.S. labor productivity equaled 15 units per hour and Japan's 40 units per hour.14.In a two-country, two-product world, the statement“ Germanyenjoys acomparativ e advantage over France in autos relative toships ”is equivalent toA) France having a comparative advantage over Germany in ships.B) France having a comparative disadvantage compared to Germany in autos and ship s.C) Germany having a comparative advantage over France in autos and ships.D) France having no comparative advantage over Germany.E) France should produce autos.15.If the United States' production possibility frontier was flatter to the widget axis, whereas Germany's was flatter to the butter axis, we know thatA)the United States has no comparative advantageB)Germany has a comparative advantage in butter.C)the U.S. has a comparative advantage in butter.D)Germany has comparative advantages in both products.E)the U.S. has a comparative disadvantage in widgets.Ch4-Ch51.The Ricardian model of international trade demonstrates that trade can bemutually beneficial. Why, then, do governments restrict imports of some goods?A)Trade can have substantial effects on a country's distribution of income.B)The Ricardian model is often incorrect in its prediction that trade can bemutually beneficial.C)Import restrictions are the result of trade wars between hostile countries.D)Imports are only restricted when foreign-made goods do not meet domestic standar ds of qualityE) Restrictions on imports are intended to benefit domestic consumers.2.Japan's trade policies with regard to rice reflect the fact thatA) japanese rice farmers have significant political power.B) Japan has a comparative advantage in rice production and therefore exports most o f its rice crop.C) there would be no gains from trade available to Japan if it engaged in free trade in r ice.D) there are gains from trade that Japan captures by engaging in free trade in rice.E) Japan imports most of the rice consumed in the country.3.In the specific factors model, which of the following is treated as a specific factor?A)LaborB)LandC)ClothD)FoodE)Technology4.The specific factors model assumes that there are ________ goods and ________ fa ctor(s) of production.A) two; threeB) two; two C)two; one D)three; two E)four; three5.The slope of a country's production possibility frontier with cloth measured on the horizontal and food measured on the vertical axis in the specific factors model is equa l to ________ and it ________ as more cloth is produced.A)-MPLF/MPLC; becomes steeperB)-MPLF/MPLC; becomes flatterC)-MPLF/MPLC; is constantD)-MPLC/MPLF; becomes steeperE)-MPLC/MPLF; is constant6.Under perfect competition, the equilibrium price of labor used to produce clothwill be equal toA)the slope of the production possibility frontier.B)the average product of labor in the production of cloth times the price of cloth.C)the ratio of the marginal product of labor in the production of cloth to the marginal product of labor in the production of food times the ratio of the price of cloth. to the price of food.D)the marginal product of labor in the production of cloth times the price of cloth.E)the price of cloth divided by the marginal product of labor in the production of clot h.7.In the specific factors model, which of the following will increase the quantity ofla bor used in cloth production?A)an increase in the price of cloth relative to that of foodB) an increase in the price of food relative to that ofcloth C) a decrease in the price of laborD) an equal percentage decrease in the price of food and clothE) an equal percentage increase in the price of food and cloth8.A country that does not engage in trade can benefit from trade only ifA)it has an absolute advantage in at least one good.B)it employs a unique technology.C)pre-trade and free-trade relative prices are not identical.D)its wage rate is below the world average.E)pre-trade and free-trade relative prices are identical.9.In the specific factors model, the effects of trade on welfare are ________ for mobil e factors, ________ for fixed factors used to produce the exported good, and ________ for fixed factors used to produce the imported good.A)ambiguous; positive; negativeB) ambiguous; negative; positive C)positive; ambiguous; ambiguous D)negative; ambiguous; ambiguous E)positive; positive; positive10.The effect of trade on specialized employees of import-competing industries willb e ________ jobs and ________ pay because they are relatively ________.A)fewer; lower; mobileB)fewer; lower; immobileC)more; lower; immobileD)more; higher; mobileE)more; higher; immobile11. There is a bias in the political process against free trade becauseA)there is a high correlation between the volume of imports and the unemployment ra te.B)the gains from free trade cannot be measured.C)those who gain from free trade can't compensate those who lose.D)foreign governments make large donations to U.S. political campaigns.E) those who lose from free trade are better organized than those who gain.12.In the 2-factor, 2 good Heckscher-Ohlin model, the two countries differin A)tastes and preferences.B)military capabilities.C)the size of their economies.D)relative abundance of factors of production.E)labor productivities.13.If a country produces good Y (measured on the vertical axis) and good X (measure d on the horizontal axis), then the absolute value of the slope of its production possibil ity frontier is equal toA)the opportunity cost of good X.B) the price of good X divided by the price of good Y.C) the price of good X divided by the price of goodY. D) the opportunity cost of good Y.E)the cost of capital (assuming that good Y is capital intensive) divided by the costof labor.14.In the 2-factor, 2 good Heckscher-Ohlin model, trade will ________ the owners ofa country's ________ factor and will ________ the good that uses that factor intensiv ely.A)benefit; abundant; exportB)harm; abundant; importC)benefit; scarce; exportD)benefit; scarce; importE)harm; scarce; export15.The assumption of diminishing returns in the Heckscher-Ohlin model means that, unlike in the Ricardian model, it is likely thatA) countries will consume outside their production possibility frontier.B) countries will benefit from free international trade.C) countries will not be fully specialized in one product.D)comparative advantage will not determine the direction of trade.E)global production will decrease under trade.16.If Japan is relatively capital rich and the United States is relatively land rich, and if food is relatively land intensive then trade between these two, formerly autarkic coun tries will result inA)an increase in the relative price of food in the U.S.B)an increase in the relative price of food in Japan.C)a global increase in the relative price of food.D)a decrease in the relative price of food in both countries.E)an increase in the relative price of food in both countries.17.Starting from an autarky (no-trade) situation with Heckscher-Ohlin model, if Coun try H is relatively labor abundant, then once trade beginsA) rent will be unchanged but wages will rise in H.B) wages and rents should rise in H.C) wages and rents should fall in H.D) wages should fall and rents should rise in H.E) wages should rise and rents should fall in H.18.The Leontieff ParadoxA)failed to support the validity of the Heckscher-Ohlin model.B)supported the validity of the Ricardian theory of comparative advantage.C)supported the validity of the Heckscher-Ohlin model.D)failed to support the validity of the Ricardian theory.E)proved that the U.S. economy is different from all others.19. Which of the following is an assertion of the Heckscher-Ohlin model?A)Factor price equalization will occur only if there is costless mobility of all factors a cross borders.B)An increase in a country's labor supply will increase production of both the capital-intensive and the labor-intensive good.C)In the long-run, labor is mobile and capital is not.D)The wage-rental ratio determines the capital-labor ratio in a country's industr ies.E)Factor endowments determine the technology that is available to a country, which determines the good in which the country will have a comparative advantage.20. Which of the following is an assertion of the Heckscher-Ohlin model?A)An increase in a country's labor supply will increase production of the labor-i ntensive good and decrease production of the capital-intensive good.B)An increase in a country's labor supply will increase production of both the capital-intensive and the labor-intensive good.C)In the long-run, labor is mobile and capital is not.D)Factor price equalization will occur only if there is costless mobility of all factors a cross borders.E)Factor endowments determine the technology that is available to a country, which determines the good in which the country will have a comparative advantage.Ch6-Ch101.If the ratio of price of cloth (PC) divided by the price of food (PF) increases in thei nternational marketplace, thenA)the terms of trade of cloth exporters will improve.B)all countries would be better off.C)the terms of trade of food exporters will improve.D)the terms of trade of all countries will improve.E) the terms of trade of cloth exporters will worsen.2.If the ratio of price of cloth (PC) divided by the price of food (PF) increases in thei nternational marketplace, thenA)world relative quantity of cloth supplied will increase.B)world relative quantity of cloth supplied and demanded will increase.C)world relative quantity of cloth supplied and demanded will decrease.D)world relative quantity of cloth demanded will decrease.E)world relative quantity of food will increase.3.If the U.S. (a large country) imposes a tariff on its imported good, this will tend toA)have no effect on terms of trade.B)improve the terms of trade of the United States.C)improve the terms of trade of all countries.D)because a deterioration of U.S. terms of trade.E)raise the world price of the good imported by the United States.4.If Slovenia were a large country in world trade, then if it instituted a large set of sub sidies for its exports, this mustA)decrease its marginal propensity to consume.B)have no effect on its terms of trade.C)improve its terms of trade.D)harm its terms of trade.E)harm world terms of trade.5.Internal economies of scale arise when the cost per unitA)falls as the average firm grows larger.B)rises as the industry grows larger.C)falls as the industry grows larger.D)rises as the average firm grows larger.E)remains constant over a broad range of output.6. External economies of scale will ________ average cost when output is ________ by _______.A)reduce; increased; the industryB)reduce; increased; a firmC)increase; increased; a firmD)increase; increased; the industryE)reduce; reduce; the industry7.If some industries exhibit internal increasing returns to scale in each country, we sh ould not expect to seeA) perfect competition in these industries.B) intra-industry trade between countries.C)inter-industry trade between countries.D)high levels of specialization in both countries.E)increased productivity in both countries.8.A learning curve relates ________ to ________ and is a case of ________ returns.A) unit cost; cumulative production; dynamic decreasing returnsB)output per time period; long-run marginal cost; dynamic increasing returnsC)unit cost; cumulative production; dynamic increasing returnsD)output per time period; long-run marginal cost; dynamic decreasing returnsE)labor productivity; education; increasing marginal returns9.Patterns of interregional trade are primarily determined by ________ rather than __ ______ because factors of production are generally ________.A)external economies; natural resources; mobileB)internal economies; external economies; mobileC)external economies; population; immobileD)internal economies; population; immobileE)population; external economies; immobile10.Monopolistic competition is associatedwith A) product differentiation.B) price-taking behavior.C) explicit consideration at the firm level of the strategic impact of other firms' pricing decisions. D) high profit margins in the long run.E) increasing returns to scale.11.A firm in long-run equilibrium under monopolistic competition will earnA)positive monopoly profits because each sells a differentiated product.B)zero economic profits because of free entryC)positive oligopoly profits because each firm sells a differentiated product.D)negative economic profits because it has economies of scale.E)positive economic profit if it engages in international trade.12.The most common form of price discrimination in international tradeis A) dumping.B) non-tariff barriers.C) Voluntary Export Restraints.D) preferential trade arrangements.E) product boycotts.13.Consider the following two cases. In the first, a U.S. firm purchases 18% of a forei gn firm. In the second, a U.S. firm builds a new production facility in a foreign countr y. Both are ________, with the first referred to as ________ and the second as ______ __.A)foreign direct investment (FDI) outflows; brownfield; greenfieldB)foreign direct investment (FDI) inflows; greenfield; brownfieldC)foreign direct investment (FDI) outflows; greenfield; brownfieldD)foreign direct investment (FDI) inflows; brownfield; greenfieldE)foreign direct investment (FDI); inflows; outflows14. Specific tariffs areA)import taxes stated in specific legal statutes.B)import taxes calculated as a fixed charge for each unit of imported goods.C)import taxes calculated as a fraction of the value of the imported goods.D)the same as import quotas.E)import taxes calculated based solely on the origin country.15.A problem encountered when implementing an "infant industry" tariff isthat A) domestic consumers will purchase the foreign good regardless of thetariff. B) the industry may never "mature."C)most industries require tariff protection when they are mature.D)the tariff may hurt the industry's domestic sales.E)the tariffs fail to protect the domestic producers.16.In the country levying the tariff, the tariff will A)increase both consumer and producer surplus.B) decrease both the consumer and producer surplus.C) decrease consumer surplus and increase producer surplus.D) increase consumer surplus and decrease producer surplus.E) decrease consumer surplus but leave producers surplus unchanged.17.If the tariff on computers is not changed, but domestic computer producers shift fr om domestically produced semiconductors to imported components, then the effective rate of protection in the computer industry willA) increase.B) decreaseC) remain the same.D)depend on whether computers are PCs or "Supercomputers."E)no longer apply.18.When a government allows raw materials and other intermediate products to enter a country duty free, this generally results in a(an)A) effective tariff rate less than the nominal tariff rate.B) nominal tariff rate less than the effective tariff rate.C) rise in both nominal and effective tariff rates.D) fall in both nominal and effective tariff rates. E) rise in only the effective tariff rat e.19.Should the home country be "large" relative to its trade partners, its imposition ofa tariff on imports would lead to an increase in domestic welfare if the terms of thetra de rectangle exceed the sum of theA) revenue effect plus redistribution effect.B) protective effect plus revenue effect.C) consumption effect plus redistribution effect.D)production distortion effect plus consumption distortion effect.E)terms of trade gain.20.The efficiency case made for free trade is that as trade distortions such as tariffs ar e dismantledand removed,A) government tariff revenue will decrease, and therefore national economic welfare will decreaseB) government tariff revenue will decrease, and therefore national econo mic welfare will increase.C) deadweight losses for producers and consumers will decrease, henceincreasin g national economic welfare.D)deadweight losses for producers and consumers will decrease, hence decreasing na tional economic welfare.E)government tariff revenue will increase, hence increasing national economic welfar e.21.Which organization determines procedures for the settlement of international trade disputes?A)World BankB)World Trade OrganizationC)International Monetary OrganizationD)International Bank for Reconstruction and DevelopmentE)The League of Nations22.Today U.S. protectionism is concentratedin A) high-tech industries.B) labor-intensive industries.C) industries in which Japan has a comparative advantage.D)computer intensive industries.E)capital-intensive industries.23.The quantitative importance of U.S. protection of the domestic clothing industryis best explained by the fact thatA)this industry is an important employer of highly skilled labor.B)this industry is an important employer of low skilled labor.C)most of the exporters of clothing into the U.S. are poor countries.D)this industry is a politically well organized sector in the U.S.E)the technology involved is very advanced.欢迎下载1124.The optimum tariff is most likely to applyto A) a small tariff imposed by a small country.B) a small tariff imposed by a large country. C)a large tariff imposed by a small country. D) alarge tariff imposed by a large country. E) anad valorem tariff on a small country.25.The median voter modelA)works well in the area of trade policy.B)is not intuitively reasonable.C)tends to result in biased tariff rates.D)does not work well in the area of trade policy.E)is not widely practiced in the United States.欢迎下载12。

国际经济学考试试题

国际经济学考试试题一、单项选择题（每题 2 分，共 30 分）1、从国际经济资源流动的难度看，最容易流动的要素是（）A 商品B 资本C 人员D 技术2、假定闭关自守的状态下，X 商品的价格，在 A 国是 10 美元，在 B 国是 8 美元，C 国是 6 美元，并且 A 国是小国，不能通过贸易影响 B 国和 C 国的价格。

如果 A 国对从 B 国和 C 国进口的 X 商品最初征收非歧视性的 100%的从价税，那么，A 国是（）A 贸易创造国B 贸易转移国C 贸易受损国D 无法确定3、比较优势理论认为国际贸易的驱动力是（）A 劳动生产率的差异B 技术水平的差异C 产品品质的差异D 价格的差异4、以下哪种贸易政策会降低本国的福利水平（）A 出口补贴B 进口关税C 进口配额D 自愿出口限制5、能反映规模经济理论本意的是（）A 规模报酬递减B 规模报酬递增C 规模报酬不变D 以上都不对6、幼稚产业保护论的提出者是（）A 亚当·斯密B 大卫·李嘉图C 汉密尔顿D 李斯特7、当一国政府对某种产品征收进口关税时，若该产品的需求弹性大于供给弹性，生产者与消费者承担关税的程度是（）A 前者大于后者B 后者大于前者C 两者相等D 不确定8、一国货币贬值对其进出口收支产生何种影响（）A 出口增加，进口减少B 出口减少，进口增加C 出口增加，进口增加D 出口减少，进口减少9、在浮动汇率制下，当一国国际收支出现逆差时，该国货币汇率会（）A 上升B 下降C 不变D 不确定10、以下哪项不是国际收支平衡表中的项目（）A 经常项目B 资本项目C 错误与遗漏项目D 国内生产总值项目11、购买力平价理论的基础是（）A 一价定律B 利率平价C 相对购买力平价D 绝对购买力平价12、国际收支调整的弹性分析法的假设前提不包括（）A 不存在国际资本流动B 汇率由货币当局决定C 马歇尔勒纳条件成立D 进出口商品的供给弹性无穷大13、下列属于直接标价法的是（）A 1 美元=68 人民币B 1 人民币=015 美元C 1 英镑=12 欧元D 1 欧元=085 英镑14、蒙代尔弗莱明模型主要分析在资本完全流动的情况下，（）政策的有效性。

国际经济学试卷试题包括答案.docx

国际经济学考试试题完美版,含答案

全国2007年4月高等教育自学考试国际经济学试题课程代码00140一、单项选择题25小题1分25分在每小题列出的四个备选项中只有一个是符合题目要求的错选、多选或未选均无分。

1.从十五世纪初到十八世纪中叶AA.重商主义B.重农主义C.重金主义D.货币主义2.采取进口替代战略的国家不倾向使用的政策是DA.对进口关税设置壁垒B.对非关税设置障碍C.对外汇实行管制D.对本国货币低估对外价值3.相对技术差异论的提出者是BA.斯密B.李嘉图C.奥林D.赫克歇尔4.关税与贸易总协定进行了多轮多边贸易谈判CA.日内瓦回合B.东京回合C.乌拉圭回合D.安纳西回合5.世界贸易组织成立于CA.1993年B.1994年C.1995年D.1996年6.一般而言不属于外汇市场主要参与者的是DA.商业银行B.中央银行C.外贸公司D.居民个人7.国际收支平衡表中最重要的收支差额是DA.官方结算差额B.商品贸易差额C.基本收支差额D.经常项目差额8.国际收支调整的重要基础理论是CA.调整论B.货币论C.弹性论D.平衡论9.从总体上看产品的需求弹性的绝对值将AA.大于1B.小于1C.等于1D.不确定10.在开放经济条件下c=0.6s=0.3考虑政府的财政收入部分CA.10/9B.5/3C.5/2D.10/311.下列属于非关税壁垒的措施是DA.反倾销税B.反补贴税C.进口附加税D.国内最低限价12.最佳关税来源于BA.进口国厂商B.出口国厂商C.第三国出口厂商D.第三国进口厂商13.20世纪90年代东南亚金融危机爆发的最直接原因是AA.泰国宣布放弃盯住汇率制度B.韩国财团破产C.香港股市大跌D.日本经济大幅下滑14.特别提款权实质上是一种DA.货币B.基金C.债权D.记帐单位15.国际收入调整的货币理论中的价格—铸币流动机制提出者是CA.亚当·斯密B.保罗·克鲁格曼C.大卫·休谟D.彼得·凯恩16.在比较利益模型中CA.在两国贸易前的国内比价线之上B.在两国贸易前的国内比价线之下C.在两国贸易前的国内比价线之间D.与两国贸易前的国内比价线相同17.一A.出口方式B.直接投资方式C.发放许可证方式D.间接投资方式18.巴格瓦蒂等经济学家提出对希望移居外国的本国居民征收一部分税费AA.可使移民的移出国获得某种补偿B.可补偿移出国的商品出口C.可补偿本国劳动力收入D.可补偿公共设施的不足19.重叠需求贸易理论从需求的角度对产业内贸易加以概括和解释出了重要贡献。

国际经济学题库及答案按章节

国际经济学题库（按章节）第一章国际贸易理论的微观基础、第二章古典贸易理论一、名词解释1．重商主义2．自由贸易论3．绝对优势论4．比较优势论5．机会成本６．机会成本递增７．生产可能性边界二、判断题(在括号内填“√”，表示正确；填上“X”，表示错误)1．国际经济学研究的是全球资源的有效配置。

( )2．重商主义认为，各国在国际贸易中的利弊得失是完全相反的，你之所得就是我之所失。

( ) 3．我们墨西哥在与美国的竞争中得不到什么好处，美国工厂的生产效率太高了，它有那么多的计算机和机械工具，它的工程水平也太发达了。

我们需要关税，要么我们什么也不出口。

（）4．国际贸易产生于各国之间生产商品的技术水平的绝对差别，这是绝对差异论的基本观点。

( ) 5．在现实社会中，当经济资源或生产要素从一个部门转移到另一个部门时，机会成本可以始终保持不变。

( )6．在机会成本递增条件下，只要各国在生产同样产品时，存在着价格差异，那么各国间的国际分工仍能达到完全专业化的程度。

( )7．国际贸易形成的范围是：国际比价必须在两个参加贸易的国家贸易前的国内比价之间。

( ) 8．如果进行贸易的两个国家具有同样的生产可能性边界，即使各国不同的生活习惯，以及嗜好差异，也不会导致国际贸易。

( )9．生产可能性边界曲线上的各点切线的斜率即为机会成本。

( )10．晚期重商主义的观点又被称为“贸易差额论”。

（）11．一位美国参议员写了下面一段话：“贸易被认为是能够提高所有参与国收入的，至少亚当.斯密或大卫.李嘉图是这样教导我们的。

（）三、不定项选择题1．国际经济学作为独立的经济学分支科学，有自身的特点。

下列不属于这些特点的是( )。

A．国际经济学不同于区域经济学。

B．国际经济学理论的选择并不带有明显的民族性。

C.国际经济学建立在宏微观经济学基础之上，但它仍具有自身的理论体系。

D．国际经济学是在西方经济学理论基础之上的世界经济概论。

2．重商主义在国际贸易发展的历史上起到过非常重要的作用，但也存在明显的局限性。

【国际经济学专题考试试卷十五】Monopoly

【国际经济学专题考试试卷十五】MonopolyChapter 15MonopolyTRUE/FALSE1. Monopolists can achieve any level of profit they desire because they have unlimited market power.ANS: F DIF: 2 REF: 15-0 NAT: AnalyticLOC: Monopoly TOP: Monopoly MSC: Interpretive2. Even with market power, monopolists cannot achieve any level of profit they desire because they will selllower quantities at higher prices.ANS: T DIF: 2 REF: 15-0 NAT: AnalyticLOC: Monopoly TOP: Monopoly MSC: Interpretive3. One characteristic of a monopoly market is that the product is virtually identical to products produced by competing firms.ANS: F DIF: 2 REF: 15-1 NAT: AnalyticLOC: Monopoly TOP: Monopoly MSC: Definitional4. The fundamental cause of monopolies is barriers to entry.ANS: T DIF: 2 REF: 15-1 NAT: AnalyticLOC: Monopoly TOP: Monopoly MSC: Interpretive5. The De Beers Diamond company advertises heavily to promote the sale of all diamonds, not just its own. This is evidence that it has a monopoly position to some degree.ANS: T DIF: 1 REF: 15-1 NAT: AnalyticLOC: Monopoly TOP: Monopoly MSC: Interpretive6. The De Beers Diamond company is not worried about differentiating its product from all other gemstones. ANS: F DIF: 1 REF: 15-1 NAT: AnalyticLOC: Monopoly TOP: Monopoly MSC: Interpretive7. The amount of power that a monopoly has depends on whether there are close substitutes for its product. ANS: T DIF: 1 REF: 15-1 NAT: AnalyticLOC: Monopoly TOP: Monopoly MSC: Interpretive8. If the ABC company owns the exclusive rights to mine land in Afghanistan for Lapis Lazuli, a rare stone usedin jewelry which is found only in Afghanistan, the company benefits from a barrier to entry.ANS: T DIF: 1 REF: 15-1 NAT: AnalyticLOC: Monopoly TOP: Monopoly MSC: Applicative9. Copyrights and patents are examples of barriers to entry that afford firms monopoly pricing powers.ANS: T DIF: 2 REF: 15-1 NAT: AnalyticLOC: Monopoly TOP: Patents MSC: Interpretive10. If the government deems a newly invented drug to be truly original, the pharmaceutical company is given the exclusive right to manufacture and sell the drug for 50 years.ANS: F DIF: 1 REF: 15-1 NAT: AnalyticLOC: Monopoly TOP: Patents MSC: Interpretive11. A natural monopoly has economies of scale for most if not all of its range of output.ANS: T DIF: 2 REF: 15-1 NAT: AnalyticLOC: Monopoly TOP: Natural monopoly MSC: Applicative12. Declining average total cost with increased production is one of the defining characteristics of a naturalmonopoly.ANS: T DIF: 1 REF: 15-1 NAT: AnalyticLOC: Monopoly TOP: Natural monopoly MSC: Definitional1002Chapter 15/Monopoly 1003 13. A monopolist maximizes profit by producing an output level where marginal cost equals price.ANS: F DIF: 2 REF: 15-2 NAT: AnalyticLOC: Monopoly TOP: Profit maximization MSC: Interpretive14. A monopolist produces an output level where marginal revenue equals marginal cost and charges a pricewhere marginal cost equals average total cost.ANS: F DIF: 2 REF: 15-2 NAT: AnalyticLOC: Monopoly TOP: Profit maximization MSC: Applicative15. Average revenue for a monopoly is the total revenue divided by the quantity produced.ANS: T DIF: 1 REF: 15-2 NAT: AnalyticLOC: Monopoly TOP: Average revenue MSC: Definitional16. For a monopoly, marginal revenue is often greater than the price they charge for their good.ANS: F DIF: 1 REF: 15-2 NAT: AnalyticLOC: Monopoly TOP: Marginal revenue MSC: Interpretive17. Like competitive firms, monopolies choose to produce a quantity in which marginal revenue equals marginalcost.ANS: T DIF: 2 REF: 15-2 NAT: AnalyticLOC: Monopoly TOP: Profit maximization MSC: Interpretive18. Like competitive firms, monopolies charge a price equal to marginal cost.ANS: F DIF: 2 REF: 15-2 NAT: AnalyticLOC: Monopoly TOP: Profit maximization MSC: Interpretive19. A monopolist produces where P > MC = MR.ANS: T DIF: 2 REF: 15-2 NAT: AnalyticLOC: Monopoly TOP: Profit maximization MSC: Interpretive20. A monopolist produces where P = MC = MR.ANS: F DIF: 2 REF: 15-2 NAT: AnalyticLOC: Monopoly TOP: Profit maximization MSC: Interpretive21. A monopolist does not have a supply curve beca use the firm?s decision about how much to supply isimpossible to separate from the demand curve it faces.ANS: T DIF: 2 REF: 15-2 NAT: AnalyticLOC: Monopoly TOP: Supply curve MSC: Interpretive22. A monopolist?s supply curve is vertical.ANS: F DIF: 1 REF: 15-2 NAT: AnalyticLOC: Monopoly TOP: Supply curve MSC: Applicative23. A monopolist?s supply curve is horizontal.ANS: F DIF: 1 REF: 15-2 NAT: AnalyticLOC: Monopoly TOP: Supply curve MSC: Applicative24. During the life of a drug patent, the monopoly pharmaceutical firm maximizes profit by producing the quantity at which marginal revenue equals marginal cost.ANS: T DIF: 1 REF: 15-2 NAT: AnalyticLOC: Monopoly TOP: Profit maximization MSC: Interpretive25. The socially efficient quantity is found where the demand curve intersects the marginal cost curve.ANS: T DIF: 2 REF: 15-3 NAT: AnalyticLOC: Monopoly TOP: Deadweight loss MSC: Interpretive26. The deadweight loss for a monopolist equals one-half of its profits for any given level of output.ANS: F DIF: 2 REF: 15-3 NAT: AnalyticLOC: Monopoly TOP: Deadweight loss MSC: Interpretive1004 Chapter 15/Monopoly27. A monopoly creates a deadweight loss to society because it earns both short-run and long-run positiveeconomic profits.ANS: F DIF: 2 REF: 15-3 NAT: AnalyticLOC: Monopoly TOP: Deadweight loss MSC: Interpretive28. A monopoly creates a deadweight loss to society because it produces less output than the socially efficientlevel.ANS: T DIF: 2 REF: 15-3 NAT: AnalyticLOC: Monopoly TOP: Deadweight loss MSC: Interpretive29. Suppose a profit-maximizing monopolist faces a constant marginal cost of $10, produces an output level of100 units, and charges a price of $50. The socially efficient level of output is 200 units. Assume that the demand curve and marginal revenue curve are the typical downward-sloping straight lines. The monopoly deadweight loss equals $4,000.ANS: F DIF: 3 REF: 15-3 NAT: AnalyticLOC: Monopoly TOP: Deadweight loss MSC: Analytical30. Suppose a profit-maximizing monopolist faces a constant marginal cost of $10, produces an output level of100 units, and charges a price of $50. The socially efficient level of output is 200 units. Assume that the demand curve and marginal revenue curve are the typical downward-sloping straight lines. The monopoly deadweight loss equals $2,000.ANS: T DIF: 3 REF: 15-3 NAT: AnalyticLOC: Monopoly TOP: Deadweight loss MSC: Analytical31. Suppose a profit-maximizing monopolist faces a constant marginal cost of $20, produces an output level of100 units, and charges a price of $50. The socially efficient level of output is 200 units. Assume that the demand curve and marginal revenue curve are the typical downward-sloping straight lines. The monopoly deadweight loss equals $1,500.ANS: T DIF: 3 REF: 15-3 NAT: AnalyticLOC: Monopoly TOP: Deadweight loss MSC: Analytical32. In order for a firm to maximize profits through price discrimination, the firm must have some market power and be able to prevent arbitrage.ANS: T DIF: 2 REF: 15-4 NAT: AnalyticLOC: Monopoly TOP: Price discrimination MSC: Interpretive33. Price discrimination is prohibited by antitrust laws.ANS: F DIF: 2 REF: 15-4 NAT: AnalyticLOC: Monopoly TOP: Price discrimination MSC: Interpretive34. A monopolist earns higher profits by charging one price than by practicing price discrimination.ANS: F DIF: 3 REF: 15-4 NAT: AnalyticLOC: Monopoly TOP: Price discrimination MSC: Interpretive35. A monopolist that can practice perfect price discrimination will not impose a deadweight loss on society. ANS: T DIF: 3 REF: 15-4 NAT: AnalyticLOC: Monopoly TOP: Perfect price discrimination MSC: Interpretive36. By selling hardcover books to die-hard fans and paperback books to less enthusiastic readers, the publisher is able to price discriminate and raise its profits.ANS: T DIF: 1 REF: 15-4 NAT: AnalyticLOC: Monopoly TOP: Price discrimination MSC: Interpretive37. Movie theatres charge different prices to different groups of people based on the differing marginal costs thatexist from group to group.ANS: F DIF: 1 REF: 15-4 NAT: AnalyticLOC: Monopoly TOP: Price discrimination MSC: Interpretive Chapter 15/Monopoly 1005 38. Airlines often separate theircustomers into business travelers and personal travelers by giving a discount tothose travelers who stay over a Saturday night.ANS: T DIF: 1 REF: 15-4 NAT: AnalyticLOC: Monopoly TOP: Price discrimination MSC: Interpretive39. University financial aid can be viewed as a type of price discrimination.ANS: T DIF: 1 REF: 15-4 NAT: AnalyticLOC: Monopoly TOP: Price discrimination MSC: Interpretive40. By offering lower prices to customers who buy a large quantity, a monopoly is price discriminating.ANS: T DIF: 1 REF: 15-4 NAT: AnalyticLOC: Monopoly TOP: Price discrimination MSC: Interpretive41. Goods that do not have close substitutes have downward-sloping demand curves.ANS: T DIF: 1 REF: 15-4 NAT: AnalyticLOC: Monopoly TOP: Demand curve MSC: Interpretive42. If the government regulates the price a natural monopolist can charge to be equal to the firm?s average total cost, the firm has no incentive to reduce costs.ANS: T DIF: 2 REF: 15-5 NAT: AnalyticLOC: Monopoly TOP: Regulation MSC: Interpretive43. If the government regulates the price a natural monopolist can charge to be equal to the firm?s marginal cost, the government will likely need to subsidize the firm.ANS: T DIF: 2 REF: 15-5 NAT: AnalyticLOC: Monopoly TOP: Regulation MSC: Interpretive44. Antitrust laws give the Justice Department the authority to challenge potential mergers between companies in an effort to safeguard society from monopoly power.ANS: T DIF: 1 REF: 15-5 NAT: AnalyticLOC: Monopoly TOP: Antitrust MSC: Interpretive45. Some companies merge in order to lower costs through efficient joint production.ANS: T DIF: 1 REF: 15-5 NAT: AnalyticLOC: Monopoly TOP: Antitrust MSC: Interpretive46. A common solution to monopoly in European countries is public ownership.ANS: T DIF: 1 REF: 15-5 NAT: AnalyticLOC: Monopoly TOP: Monopoly MSC: Interpretive47. The proper level of government intervention is unclear when dealing with a monopoly.ANS: T DIF: 1 REF: 15-5 NAT: AnalyticLOC: Monopoly TOP: Regulation MSC: Interpretive48. The government may choose to do nothing to reduce monopoly inefficiency because the “fix” may be worse than the problem.ANS: T DIF: 1 REF: 15-5 NAT: AnalyticLOC: Monopoly TOP: Do nothing MSC: Interpretive49. Government intervention always reduces monopoly deadweight loss.ANS: F DIF: 1 REF: 15-5 NAT: AnalyticLOC: Monopoly TOP: Do nothing MSC: Interpretive50. Firms with substantial monopoly power are quite common because many goods are truly unique.ANS: F DIF: 1 REF: 15-6 NAT: AnalyticLOC: Monopoly TOP: Monopoly MSC: Interpretive1006 Chapter 15/MonopolySHORT ANSWER1. Describe how government is involved in creating amonopoly. Why might the government create one? Give an example.ANS:The government can create a monopoly by giving a single firm the exclusive right to produce some good. Monopolies are created for many reasons. When an industry is characterized by high fixed costs, a single firm can usually supply the entire market at a lower cost than having multiple firms in the industry. Examples include most utility companies. The government also grants sole ownership of inventions through patent laws in order to help eliminate the market failure that is likely to otherwise occur in the markets for those goods. Patents encourage creativity and research and development.DIF: 2 REF: 15-1 NAT: Analytic LOC: MonopolyTOP: Patents | Regulation MSC: Applicative2. What is the defining characteristic of a natural monopoly? Give an example of a natural monopoly.ANS:The defining characteristic of a natural monopoly is when a firm can supply a good or service to an entire market at a lower cost than could two or more firms. The example in the text is a bridge.DIF: 2 REF: 15-1 NAT: Analytic LOC: MonopolyTOP: Natural monopoly MSC: Definitional3. In the market for "home heating" consumers typically have several options (e.g., electricity, heating fuel,natural gas, propane, etc.), yet we often think of firms in this industry as behaving like monopolists. Discuss the context in which your electricity provider is a monopolist. Is this characterization universally applicable?Explain your answer.ANS:In this case, the firms are monopolists in the short run when consumers are unable to change their "home heating" systems. In the long run, consumers can change from electric appliances to natural gas appliances and thus lessen the monopoly power of utility providers. As long as consumers are able to substitute, in the long run the monopoly pricing power is reduced.DIF: 3 REF: 15-2 NAT: Analytic LOC: MonopolyTOP: Monopoly MSC: Analytical4. There has been much discussion of deregulating electricity and natural gas delivery companies in the UnitedStates. Discuss the likely effect of deregulation on prices in these two industries.ANS:If deregulation leads to increased competition, then production and prices should move toward the competitive equilibrium. If deregulation does not lead to increased competition, then the monopoly production and price outcome is likely. The success of deregulation movements hinges on their ability to use markets to promote competitive market outcomes. If the industry is characterized by economies of scale, deregulation may worsen rather than improve the market as costs and prices could rise if more than one firm supplies output to the market. DIF: 2 REF: 15-2 NAT: Analytic LOC: Monopoly TOP: Regulation MSC: Analytical5. Explain how a profit-maximizing monopolist chooses its level of output and the price of its goods.ANS:A profit-maximizing monopolist produces the output levelwhere marginal revenue equals marginal cost and charges the corresponding price from the market demand curve. Note that a monopolist charges a price that exceeds marginal cost, unlike a competitive firm, for which price equals marginal cost.DIF: 2 REF: 15-2 NAT: Analytic LOC: MonopolyTOP: Profit maximization MSC: AnalyticalChapter 15/Monopoly 1007 6. Graphically depict the deadweight loss caused by a monopoly. How is this similar to the deadweight loss fromtaxation?ANS:A profit-maximizing monopolist will choose to produce Q0 units of output and sell at price P0. However, marginal cost is MC0. This is identical to the deadweight loss of taxation when the tax forces a wedge between market price and marginal cost.DIF: 2 REF: 15-3 NAT: Analytic LOC: MonopolyTOP: Deadweight loss MSC: Analytical7. What is the deadweight loss due to profit-maximizing monopoly pricing under the following conditions: The price charged for goods produced is $10. The intersection of the marginal revenue and marginal cost curves occurs where output is 100 units and marginal revenue is $5. The socially efficient level of production is 110 units. The demand curve is linear and downward sloping, and the marginal cost curve is constant.ANS:1/2*(110-100)*($10-$5) = $25DIF: 3 REF: 15-3 NAT: Analytic LOC: MonopolyTOP: Deadweight loss MSC: Applicative8. Assume that a monopolist decides to maximize revenue rather than profit. How does this operating objective change the size of the deadweight loss? If you are a "benevolent" manager of a monopoly firm and areinterested in reducing the deadweight loss of monopoly, should you maximize profits or maximize revenue?Explain your answer.ANS:A revenue maximizer operates where MR = 0. This solution moves the monopolist closer to the socially optimal competitive outcome and reduces deadweight loss. Revenue maximization is potentially a more "socially" optimal objective for monopoly markets than profit maximization.DIF: 3 REF: 15-3 NAT: Analytic LOC: MonopolyTOP: T otal revenue MSC: Analytical9. One example of price discrimination occurs in the publishing industry when a publisher initially releases anexpensive hardcover edition of a popular novel and later releases a cheaper paperback edition. Use thisexample to demonstrate the benefits and potential pitfalls of a price discrimination pricing strategy.ANS:The answer should address the three basic lessons of price discrimination. First, price discrimination is a rational strategy that can lead to higher monopoly profits. Second, price discrimination requires an ability to separate customers according to their willingness to pay. Third, price discrimination can raise economic welfare.DIF: 2 REF: 15-4 NAT: Analytic LOC: MonopolyTOP: Price discrimination MSC: Analytical。

国际经济学试卷及答案

国际经济学试卷及答案．第 2 页共 25 页试卷(A)国际经济学一、选择题（2x15=30，每题只有一个正确答案）1、如果dx、sx、dm和sm分别代表出口产品的需求弹性、出口产品的供给弹性、进口产品的需求弹性和进口产品的供给弹性，则马歇尔—勒纳条件用公式表示为（）A．｜dx+dm｜>1 B．｜dx+sx｜>1C．｜dm+sm｜>1 D．｜sx+sm｜>12. “贫困化增长”的一个必要条件为：（）A．国家的增长偏向于出口产业。

B．外国对该国的出口需求具有价格弹性。

C．国家的消费偏好高度偏向于出口商品。

D．贸易在国民经济中比重不大。

3、从国际贸易对生产要素收入分配的短期影响来看，自由贸易会导致（）A．生产进口竞争品部门使用的专门生产要素收入水平提高B．生产进口竞争品部门使用的共同生产要]键入文字[第 3 页共 25 页]键入文字[第 4 页共 25 页]键入文字[第 5 页共 25 页]键入文字[第 6 页共 25 页]键入文字[第 7 页共 25 页]键入文字[第 8 页共 25 页]键入文字[第 9 页共 25 页]键入文字[第 10 页共 25 页]键入文字[第 11 页共 25 页]键入文字[第 12 页共 25 页]键入文字[第 13 页共 25 页]键入文字[第 14 页共 25 页]键入文字[第 15 页共 25 页]键入文字[第 16 页共 25 页]键入文字[第 17 页共 25 页]键入文字[第 18 页共 25 页]键入文字[第 19 页共 25 页]键入文字[第 20 页共 25 页]键入文字[第 21 页共 25 页]键入文字[第 22 页共 25 页]键入文字[第 23 页共 25 页]键入文字[第 24 页共 25 页]键入文字[第 25 页共 25 页]键入文字[。

【国际经济学专题考试试卷十六】Monopolistic Competition

Chapter 16Monopolistic CompetitionTRUE/FALSE1. The "competition" in monopolistically competitive markets is most likely a result of having many sellers in themarket.ANS: T DIF: 1 REF: 16-1 NAT: AnalyticLOC: Monopolistic competition TOP: Monopolistic competitionMSC: Interpretive2. The "monopoly" in monopolistically competitive markets is most likely a result of firms having some pricingpower due to product differentiation.ANS: T DIF: 1 REF: 16-1 NAT: AnalyticLOC: Monopolistic competition TOP: Monopolistic competitionMSC: Interpretive3. Monopolistic competition is characterized by many buyers and sellers, product differentiation, and free entry. ANS: T DIF: 1 REF: 16-1 NAT: AnalyticLOC: Monopolistic competition TOP: Monopolistic competitionMSC: Definitional4. Monopolistic competition is characterized by many buyers and sellers, product differentiation, and barriers toentry.ANS: F DIF: 1 REF: 16-1 NAT: AnalyticLOC: Monopolistic competition TOP: Monopolistic competitionMSC: Definitional5. A monopolistically competitive market is characterized by barriers to entry.ANS: F DIF: 1 REF: 16-1 NAT: AnalyticLOC: Monopolistic competition TOP: Monopolistic competitionMSC: Interpretive6. Monopolistic competition is the only market structure that features many sellers.ANS: F DIF: 1 REF: 16-1 NAT: AnalyticLOC: Monopolistic competition TOP: Markets MSC: Interpretive7. Product differentiation always leads to some measure of market power.ANS: T DIF: 2 REF: 16-1 NAT: AnalyticLOC: Monopolistic competition TOP: Demand curveMSC: Interpretive8. Oligopoly is characterized by a few sellers offering similar products, whereas monopolistic competition ischaracterized by many sellers offering differentiated products.ANS: T DIF: 2 REF: 16-1 NAT: AnalyticLOC: Monopolistic competition TOP: Monopolistic competitionMSC: Definitional9. Monopolistic competition is characterized by a few sellers offering similar products, whereas oligopoly ischaracterized by many sellers offering differentiated products.ANS: F DIF: 2 REF: 16-1 NAT: AnalyticLOC: Monopolistic competition TOP: Monopolistic competitionMSC: Definitional10. Oligopoly and monopolistic competition are examples of a market structure called imperfect competition. ANS: T DIF: 1 REF: 16-1 NAT: AnalyticLOC: Monopolistic competition TOP: Monopolistic competitionMSC: Definitional1078Chapter 16/Monopolistic Competition 1079 11. Monopolistic competition and monopoly are examples of a market structure called imperfect competition. ANS: F DIF: 1 REF: 16-1 NAT: AnalyticLOC: Monopolistic competition TOP: Monopolistic competitionMSC: Definitional12. A markup of price over marginal cost is inconsistent with free entry and zero profit.ANS: F DIF: 2 REF: 16-2 NAT: AnalyticLOC: Monopolistic competition TOP: Profit maximizationMSC: Interpretive13. Monopolistically competitive firms, like monopoly firms, maximize their profits by charging a price thatexceeds marginal cost.ANS: T DIF: 2 REF: 16-2 NAT: AnalyticLOC: Monopolistic competition TOP: Profit maximizationMSC: Interpretive14. A profit-maximizing firm in a monopolistically competitive market charges a price equal to marginal cost. ANS: F DIF: 2 REF: 16-2 NAT: AnalyticLOC: Monopolistic competition TOP: Profit maximizationMSC: Interpretive15. A profit-maximizing firm in a monopolistically competitive market always operates on the downward-slopingportion of its marginal cost curve.ANS: F DIF: 2 REF: 16-2 NAT: AnalyticLOC: Monopolistic competition TOP: Profit maximizationMSC: Analytical16. For a profit-maximizing firm in a monopolistically competitive market, when price is equal to average totalcost, price must lie above marginal cost.ANS: T DIF: 2 REF: 16-2 NAT: AnalyticLOC: Monopolistic competition TOP: Profit maximizationMSC: Analytical17. A profit-maximizing firm in a monopolistically competitive market can earn positive, negative, or zero profitsin the short run.ANS: T DIF: 2 REF: 16-2 NAT: AnalyticLOC: Monopolistic competition TOP: Short-run equilibriumMSC: Interpretive18. A firm in a monopolistically competitive market can earn both short-run and long-run profits.ANS: F DIF: 2 REF: 16-2 NAT: AnalyticLOC: Monopolistic competition TOP: Short-run equilibrium | Long-run equilibriumMSC: Interpretive19. A firm in a monopolistically competitive market can earn short-run profits but not long-run profits.ANS: T DIF: 2 REF: 16-2 NAT: AnalyticLOC: Monopolistic competition TOP: Short-run equilibrium | Long-run equilibriumMSC: Interpretive20. In the long run, monopolistically competitive firms produce where demand equals marginal cost.ANS: F DIF: 2 REF: 16-2 NAT: AnalyticLOC: Monopolistic competition TOP: Long-run equilibriumMSC: Analytical21. When a firm in a monopolistically competitive market earns zero economic profit, its product price must equalmarginal cost.ANS: F DIF: 2 REF: 16-2 NAT: AnalyticLOC: Monopolistic competition TOP: Long-run equilibriumMSC: Interpretive1080 Chapter 16/Monopolistic Competition22. In the long run, monopolistically competitive firms produce where demand equals average total cost.ANS: T DIF: 2 REF: 16-2 NAT: AnalyticLOC: Monopolistic competition TOP: Long-run equilibriumMSC: Analytical23. In a monopolistically competitive market, the number of firms adjusts until economic profits are driven tozero.ANS: T DIF: 1 REF: 16-2 NAT: AnalyticLOC: Monopolistic competition TOP: Long-run equilibriumMSC: Interpretive24. When a profit-maximizing firm in a monopolistically competitive market is in long-run equilibrium, marginalcost must lie below average total cost.ANS: T DIF: 2 REF: 16-2 NAT: AnalyticLOC: Monopolistic competition TOP: Long-run equilibriumMSC: Analytical25. In a monopolistically competitive market, the demand curves faced by incumbent firms are unaffected by theentry of new firms into the market.ANS: F DIF: 2 REF: 16-2 NAT: AnalyticLOC: Monopolistic competition TOP: Demand curve | Long-run equilibriumMSC: Interpretive26. A firm in a monopolistically competitive market is usually indifferent to an additional customer walkingthrough the door, since a sale to that customer will not increase the firm's profit.ANS: F DIF: 2 REF: 16-2 NAT: AnalyticLOC: Monopolistic competition TOP: Profit maximizationMSC: Interpretive27. The term excess capacity refers to the fact that a firm operates on the upward-sloping portion of itsaverage-total-cost curve.ANS: F DIF: 2 REF: 16-2 NAT: AnalyticLOC: Monopolistic competition TOP: Excess capacityMSC: Interpretive28. The term excess capacity refers to the fact that a firm produces a lower quantity than it would if it operated atthe efficient scale.ANS: T DIF: 2 REF: 16-2 NAT: AnalyticLOC: Monopolistic competition TOP: Excess capacityMSC: Interpretive29. Excess capacity characterizes firms in monopolistically competitive markets, even in situations of long-runequilibrium.ANS: T DIF: 2 REF: 16-2 NAT: AnalyticLOC: Monopolistic competition TOP: Excess capacityMSC: Interpretive30. When a firm operates with excess capacity, it must be in a monopolistically competitive market.ANS: F DIF: 2 REF: 16-2 NAT: AnalyticLOC: Monopolistic competition TOP: Excess capacityMSC: Interpretive31. A firm that would experience higher average total cost by increasing production is operating with excesscapacity.ANS: F DIF: 2 REF: 16-2 NAT: AnalyticLOC: Monopolistic competition TOP: Excess capacityMSC: InterpretiveChapter 16/Monopolistic Competition 1081 32. When a firm operates at efficient scale, it is producing at the minimum point on its average total cost curve. ANS: T DIF: 1 REF: 16-2 NAT: AnalyticLOC: Monopolistic competition TOP: Efficient scaleMSC: Definitional33. Defenders of advertising argue that firms use advertising as a signal of quality, even if the advertising deliverslittle helpful information about the product.ANS: T DIF: 1 REF: 16-3 NAT: AnalyticLOC: Monopolistic competition TOP: Advertising MSC: Applicative34. Critics of advertising argue that advertising leads to less elastic demand for products and a larger markup ofprice over marginal cost.ANS: T DIF: 2 REF: 16-3 NAT: AnalyticLOC: Monopolistic competition TOP: Advertising MSC: Interpretive35. The claim that advertising reduces the elasticity of demand is likely to be made by a defender of advertising. ANS: F DIF: 2 REF: 16-3 NAT: AnalyticLOC: Monopolistic competition TOP: Advertising MSC: Interpretive36. Critics of advertising argue that firms use advertising to manipulate consumers’ tastes.ANS: T DIF: 1 REF: 16-3 NAT: AnalyticLOC: Monopolistic competition TOP: Advertising MSC: Applicative37. When advertising is used to relay information about price, each firm is able to enhance market power.ANS: F DIF: 2 REF: 16-3 NAT: AnalyticLOC: Monopolistic competition TOP: Advertising MSC: Interpretive38. Policymakers have generally come to accept the view that advertising enhances the efficiency of markets. ANS: T DIF: 2 REF: 16-3 NAT: AnalyticLOC: Monopolistic competition TOP: Advertising MSC: Interpretive39. Economists are unanimous in their belief that advertising is socially inefficient.ANS: F DIF: 1 REF: 16-3 NAT: AnalyticLOC: Monopolistic competition TOP: Advertising MSC: Definitional40. When McDonald’s opens a store in Dhaka, Ba ngladesh, it has a strong incentive to enforce product qualityconsistent with stores in the United States.ANS: T DIF: 2 REF: 16-3 NAT: AnalyticLOC: Monopolistic competition TOP: Advertising MSC: Interpretive41. The Mikati Philippines Hard Rock Cafe has the exact same menu as the Hard Rock Cafe in New York. This isan example of a brand name enhancing market efficiency for U.S. tourists visiting the Philippines.ANS: T DIF: 2 REF: 16-3 NAT: AnalyticLOC: Monopolistic competition TOP: Advertising MSC: Interpretive42. Empirical evidence suggests that advertising usually leads to an increase in the price for advertised products. ANS: F DIF: 2 REF: 16-3 NAT: AnalyticLOC: Monopolistic competition TOP: Advertising MSC: Interpretive43. Economists who argue that advertising enhances market efficiency suggest that celebrity advertising signalsinferior product quality.ANS: F DIF: 2 REF: 16-3 NAT: AnalyticLOC: Monopolistic competition TOP: Advertising MSC: Interpretive44. Advertising during the Super Bowl is an example of information about quality contained primarily in theexistence and expense of the advertising.ANS: T DIF: 2 REF: 16-3 NAT: AnalyticLOC: Monopolistic competition TOP: Advertising MSC: Interpretive45. Brand names are rarely used to convey information about product quality.ANS: F DIF: 2 REF: 16-3 NAT: AnalyticLOC: Monopolistic competition TOP: Advertising MSC: Interpretive1082 Chapter 16/Monopolistic Competition46. The government of Italy will not allow any Hard Rock Cafe restaurants to open in Italy. Defenders of theefficiency of brand-name markets would argue that this has hindered restaurant market efficiency in Italy. ANS: T DIF: 2 REF: 16-3 NAT: AnalyticLOC: Monopolistic competition TOP: Advertising MSC: Interpretive47. The debate over whether advertising serves a valuable purpose in society is definitively answered byeconomists who study the tastes and preferences of individuals.ANS: F DIF: 2 REF: 16-3 NAT: AnalyticLOC: Monopolistic competition TOP: Advertising MSC: Interpretive48. If advertising decreases the elasticity of demand for specific brand names of hard liquor, we would expectfirms to be able to charge a larger markup over marginal cost.ANS: T DIF: 2 REF: 16-3 NAT: AnalyticLOC: Monopolistic competition TOP: Advertising MSC: Interpretive49. There is general disagreement among economists about the role of advertising, but there is widespreadagreement about the role of brand names on market efficiency.ANS: F DIF: 2 REF: 16-3 NAT: AnalyticLOC: Monopolistic competition TOP: Advertising MSC: Interpretive50. The government may not be able to improve the inefficiencies of a monopolistically competitive market. ANS: T DIF: 2 REF: 16-4 NAT: AnalyticLOC: Monopolistic competition TOP: Monopolistic competitionMSC: Interpretive51. Firms in monopolistically competitive markets and monopolies can earn long-run profits due to barriers toentry.ANS: F DIF: 2 REF: 16-4 NAT: AnalyticLOC: Monopolistic competition TOP: Monopolistic competitionMSC: Interpretive52. Free entry eliminates long-run profits for firms in competitive and monopolistic industries.ANS: T DIF: 2 REF: 16-4 NAT: AnalyticLOC: Monopolistic competition TOP: Monopolistic competitionMSC: InterpretiveSHORT ANSWER1. List five goods that are likely sold in a monopolistically competitive market.ANS:Books, CDs, movies, computer games, and piano lessons are some examples.DIF: 1 REF: 16-1 NAT: Analytic LOC: Monopolistic competitionTOP: Monopolistic competition MSC: Interpretive2. Why does a typical monopolistically competitive firm face a downward-sloping demand curve?ANS:Because its product is different from those offered by other firms.DIF: 1 REF: 16-1 NAT: Analytic LOC: Monopolistic competitionTOP: Demand curve MSC: Interpretive3. In many college towns, private independent bookstores typically locate on the periphery of the college campus.However, in some college towns, the university has used political power to restrict private bookstores near campus through community zoning laws. Use your knowledge of markets to predict the price and quality of service differences in the market for college textbooks under the two different market regimes.ANS:In monopoly markets, price will be higher and the quality of service will be lower than in monopolistically competitive markets.DIF: 2 REF: 16-1 NAT: Analytic LOC: Monopolistic competitionTOP: Monopolistic competition MSC: AnalyticalChapter 16/Monopolistic Competition 1083 4. Use a graph to demonstrate why a profit-maximizing monopolistically competitive firm must operate at excesscapacity. Explain why a perfectly competitive firm is not subject to the same constraint.ANS:Competitive firms do not face downward-sloping demand. The graph shows the firm choosing a level of production in which the intersection of marginal revenue and marginal cost occurs at an output level where average total cost is decreasing. This profit-maximizing output level is less than the efficient scale (minimum of average total cost), and therefore the firm is said to be operating with excess capacity.DIF: 2 REF: 16-2 NAT: Analytic LOC: Monopolistic competitionTOP: Excess capacity MSC: Analytical5. In a small college town, four microbreweries have opened in the last two years. Demonstrate the effect of newmarket entrants on demand for existing firms (microbreweries) that already served this market. Assume that the local community now places a moratorium on new liquor licenses for microbreweries. How will thismoratorium affect the long-run profitability of incumbent firms?ANS:The arrival of a new entrant should be graphically depicted by a leftward shift in the demand curves faced by all incumbent firms. If firms are able to make economic profits, these will be able to be maintained in the long run if new entrants are not allowed (which would essentially be a barrier to entry, meaning the market would no longer be characterized as monopolistically competitive).DIF: 2 REF: 16-2 NAT: Analytic LOC: Monopolistic competitionTOP: Long-run equilibrium MSC: Analytical1084 Chapter 16/Monopolistic Competition6. What is meant by the term "excess capacity" as it relates to monopolistically competitive firms?ANS:Monopolistically competitive firms produce a level of output lower than the efficient scale of output and are therefore said to have excess capacity.DIF: 2 REF: 16-2 NAT: Analytic LOC: Monopolistic competitionTOP: Excess capacity MSC: Interpretive7. Entry of firms in a monopolistically competitive industry is characterized by two externalities. List them andbriefly describe how consumers and existing firms are influenced by them.ANS:Business-stealing effect: incumbent firms are affected through the loss of sales; consumers are affected by lower price.Product-variety effect: incumbent firms face a market with more substitutes; consumers have more product variety from which to choose.DIF: 2 REF: 16-2 NAT: Analytic LOC: Monopolistic competitionTOP: Externalities MSC: Interpretive8. Evaluate the following statement in the context of business-stealing and product-variety externalities: "Wehave too many student apartments in this town already. Statistics show that vacancy rates average 15 percent during any given semester."ANS:Business-stealing effect: if new entrants into the market can be profitable, then average vacancy rates are likely to rise above 15 percent.Product-variety effect:if new entrants to the market are able to identify niche markets which are profitable (i.e., offer club rooms, pools, athletic facilities, etc.), then product variety will increase, and average vacancy rates are likely to rise above 15 percent.DIF: 2 REF: 16-2 NAT: Analytic LOC: Monopolistic competitionTOP: Externalities MSC: Interpretive9. Assume the role of a critic of advertising. Describe the characteristics of advertising that reduce theeffectiveness of markets and decrease the social welfare of society.ANS:Advertising manipulates people's tastes and is psychological rather than informational. As a result, advertising creates a desire for a product that might not otherwise exist. Advertising may also impede competition by convincing consumers that products that are identical have significant differences.DIF: 2 REF: 16-3 NAT: Analytic LOC: Monopolistic competitionTOP: Advertising MSC: Interpretive10. Assume the role of a defender of advertising. Describe the characteristics of advertising that enhance theeffectiveness of markets and increase the social welfare of society.ANS:Advertising provides information to consumers and thus allows consumers to make more informed (and therefore better) choices. Advertising fosters competition by making consumers more aware of prices and product characteristics in a market.DIF: 2 REF: 16-3 NAT: Analytic LOC: Monopolistic competitionTOP: Advertising MSC: Interpretive11. Evaluate the following statement: "Advertisements that use celebrity endorsements are devoid of any valueand do not enhance the efficient functioning of markets."ANS:Some people argue that celebrity endorsements are a signal of quality due to the high cost of the advertisement. If so, then these advertisements relay information about product quality and enhance the effective functioning of markets. DIF: 2 REF: 16-3 NAT: Analytic LOC: Monopolistic competitionTOP: Advertising MSC: InterpretiveChapter 16/Monopolistic Competition 108512. Professional organizations (for example, the American Medical Association and the American Bar Association)have been active advocates for regulation to restrict the right of professionals to advertise. Describe whateconomic incentives might exist for existing professionals to restrict advertising.ANS:If advertising increases information about prices and services, then providers of professional services will berequired to compete with each other on the basis of price and service. As such, existing professionals will be subject to more competitive pressure in the markets they service, and individual profits are likely to fall.DIF: 2 REF: 16-3 NAT: Analytic LOC: Monopolistic competitionTOP: Advertising MSC: Analytical13. Discuss how brand names may enhance the efficiency of markets in a less developed country.ANS:Recognizable brand names signal quality products. In the tourist- and business-services market, this signal can be critical at the early stages of development to ensure visitors have a quality experience when other information isunavailable or unreliable.DIF: 2 REF: 16-3 NAT: Analytic LOC: Monopolistic competitionTOP: Advertising MSC: Interpretive14. As developing countries make a transition to market-based economies, one of the first major capitalinvestments is in "Western-quality" hotels. Explain why brand-name hotel accommodations are a critical stepin attracting foreign investment.ANS:Brand-name hotels are a critical first step to economic development because their recognized signal of qualityreduces the barriers of facilitating foreign visitors (and their money).DIF: 2 REF: 16-3 NAT: Analytic LOC: Monopolistic competitionTOP: Advertising MSC: Analytical15. In markets where the government imposes an excise tax on unit sales, it also has a tendency to dabble withrestrictions on advertising (for example, cigarettes and hard liquor). Do potential (or actual) restrictions onadvertising in these markets serve the interest of a government that is interested in maximizing its tax revenuefrom the sale of these products? Explain your answer.ANS:In the case of the examples given, demand is quite inelastic, so restrictions on advertising are not likely to have a large impact on total sales but may have an impact on the distribution of sales across brand names. As such,government revenue is largely unaffected if the tax is on unit sales.DIF: 3 REF: 16-3 NAT: Analytic LOC: Monopolistic competitionTOP: Advertising MSC: AnalyticalSec 00 - Monopolistic CompetitionMULTIPLE CHOICE1. Which of the following is a characteristic of monopolistic competition?a.ownership of a key resource by a single firmb.free entryc.identical productd.patentsANS: B DIF: 1 REF: 16-0 NAT: AnalyticLOC: Monopolistic competition TOP: Monopolistic competitionMSC: Definitional1086 Chapter 16/Monopolistic Competition2. The market for novels isa.perfectly competitive.b. a monopoly.c.monopolistically competitive.d.an oligopoly.ANS: C DIF: 1 REF: 16-0 NAT: AnalyticLOC: Monopolistic competition TOP: Monopolistic competitionMSC: Applicative3. Which of the following statements is not correct?a.Monopolistic competition is similar to monopoly because in each market structure the firm cancharge a price above marginal costs.b.Monopolistic competition is similar to perfect competition because both market structures arecharacterized by free entry.c.Monopolistic competition is similar to oligopoly because both market structures are characterizedby barriers to entry.d.Monopolistic competition is similar to perfect competition because both market structures arecharacterized by many sellers.ANS: C DIF: 2 REF: 16-0 NAT: AnalyticLOC: Monopolistic competition TOP: Monopolistic competitionMSC: Analytical4. Which of the following statements is not correct?a.Monopolistic competition is different from monopoly because monopolistic competition ischaracterized by free entry, whereas monopoly is characterized by barriers to entry.b.Both monopolistic competition and oligopoly fall in between the more extreme market structures ofcompetition and monopoly.c.Monopolistic competition is different from oligopoly because each seller in monopolisticcompetition is small relative to the market, whereas each seller can affect the actions of othersellers in an oligopoly.d.Both monopolistic competition and perfect competition are characterized by product differentiation. ANS: D DIF: 2 REF: 16-0 NAT: AnalyticLOC: Monopolistic competition TOP: Monopolistic competitionMSC: Analytical5. Monopolistic competition is a type ofa.oligopoly.b.market structure.c.price discrimination.d.advertising strategy.ANS: B DIF: 1 REF: 16-0 NAT: AnalyticLOC: Monopolistic competition TOP: Monopolistic competitionMSC: Definitional6. A monopolistically competitive market has characteristics that are similar toa. a monopoly only.b. a competitive firm only.c.both a monopoly and a competitive firm.d.neither a monopoly nor a competitive firm.ANS: C DIF: 1 REF: 16-0 NAT: AnalyticLOC: Monopolistic competition TOP: Monopolistic competitionMSC: ApplicativeChapter 16/Monopolistic Competition 1087 Sec01 - Monopolistic Competition - Between Monopoly and Perfect Competition MULTIPLE CHOICE1. A typical firm in the U. S. economy would be classified asa.perfectly competitive.b.imperfectly competitive.c. a duopolist.d.an oligopolist.ANS: B DIF: 1 REF: 16-1 NAT: AnalyticLOC: Monopolistic competition TOP: Imperfect competitionMSC: Interpretive2. The typical firm in the U. S. economya.has some degree of market power.b.sells its product for a price that is equal to the marginal cost of producing the last unit.c.is perfectly competitive.d.is a monopoly.ANS: A DIF: 2 REF: 16-1 NAT: AnalyticLOC: Monopolistic competition TOP: Imperfect competitionMSC: Interpretive3. Which of the following pairs illustrates the two extreme examples of market structures?petition and oligopolypetition and monopolyc.monopoly and monopolistic competitiond.oligopoly and monopolistic competitionANS: B DIF: 1 REF: 16-1 NAT: AnalyticLOC: Monopolistic competition TOP: Imperfect competitionMSC: Interpretive4. The general term for market structures that fall somewhere in-between monopoly and perfect competition isa.incomplete markets.b.imperfectly competitive markets.c.oligopoly markets.d.monopolistically competitive markets.ANS: B DIF: 1 REF: 16-1 NAT: AnalyticLOC: Monopolistic competition TOP: Imperfect competitionMSC: Definitional5. The two types of imperfectly competitive markets area.markets with differentiated products and monopoly.b.markets with differentiated products and oligopoly.c.oligopoly and monopoly.d.monopolistic competition and oligopoly.ANS: D DIF: 1 REF: 16-1 NAT: AnalyticLOC: Monopolistic competition TOP: Imperfect competitionMSC: Interpretive6. The two types of imperfectly competitive markets area.monopoly and monopolistic competition.b.monopoly and oligopoly.c.monopolistic competition and oligopoly.d.monopolistic competition and cartels.ANS: C DIF: 1 REF: 16-1 NAT: AnalyticLOC: Monopolistic competition TOP: Imperfect competitionMSC: Definitional7. In a market that is characterized by imperfect competition,a.firms are price takers.b.there are always a large number of firms.c.there are at least a few firms that compete with one another.d.the actions of one firm in the market never have any impact on the other firms' profits.ANS: C DIF: 2 REF: 16-1 NAT: AnalyticLOC: Monopolistic competition TOP: Imperfect competitionMSC: Interpretive8. Firms in industries that have competitors but do not face so much competition that they are price takers areoperating in either a(n)a.oligopoly or perfectly competitive market.b.oligopoly or monopoly market.c.oligopoly or monopolistically competitive market.d.monopoly or monopolistically competitive market.ANS: C DIF: 1 REF: 16-1 NAT: AnalyticLOC: Monopolistic competition TOP: Imperfect competitionMSC: Interpretive9. Imperfectly competitive firms are characterized bya.horizontal demand curves.b.standardized products.c. a large number of small firms.d.price making ability.ANS: D DIF: 2 REF: 16-1 NAT: AnalyticLOC: Monopolistic competition TOP: Imperfect competitionMSC: Interpretive10. An oligopolya.has a concentration ratio of less than 50 percent.b.is a price taker.c.is a type of imperfectly competitive market.d.has many firms rather than just one firm or a few firms.ANS: C DIF: 1 REF: 16-1 NAT: AnalyticLOC: Monopolistic competition TOP: Oligopoly MSC: Interpretive11. An oligopoly is a market in whicha.there are only a few sellers, each offering a product similar or identical to the products offered byother firms in the market.b.firms are price takers.c.the actions of one seller in the market have no impact on the other sellers' profits.d.there are many price-taking firms, each offering a product similar or identical to the productsoffered by other firms in the market.ANS: A DIF: 1 REF: 16-1 NAT: AnalyticLOC: Monopolistic competition TOP: Oligopoly MSC: Definitional12. One characteristic of an oligopoly market structure is:a.firms in the industry are typically characterized by very diverse product lines.b.firms in the industry have some degree of market power.c.products typically sell at a price equal to their marginal cost of production.d.the actions of one seller have no impact on the profitability of other sellers.ANS: B DIF: 2 REF: 16-1 NAT: AnalyticLOC: Monopolistic competition TOP: Oligopoly MSC: Interpretive。

国际经济学选择题题库（有答案）

国际经济学选择题题库（有答案）Multiple-Choice Questions Ch.21.The Mercantilists did not advocate: aa. free tradeb. stimulating the nation's exportsc. restricting the nations' importsd. the accumulation of gold by the nation2.According to Adam Smith, international trade was based on: aa. absolute advantageb. comparative advantagec. both absolute and comparative advantaged. neither absolute nor comparative advantage3.What proportion of international trade is based on absolute advantage? c.a. Allb. mostc. somed. none4.The commodity in which the nation has the smallest absolute disadvantage is the commodity of its: da. absolute disadvantageb. absolute advantagec. comparative disadvantaged. comparative advantage5.If in a two-nation (A and B), two-commodity (X and Y) world, it is established that nation dA has a comparative advantage in commodity X, then nationB must have:a. an absolute advantage in commodity Yb. an absolute disadvantage in commodity Yc. a comparative disadvantage in commodity Yd. a comparative advantage in commodity Y6.If with one hour of labor time nation A can produce either 3X or 3Y while nation B can produce either 1X or 3Y (and labor is the only input): ca. nation A has a comparative disadvantage in commodity Xb. nation B has a comparative disadvantage in commodity Yc. nation A has a comparative advantage in commodity Xd. nation A has a comparative advantage in neither commodity7. With reference to the statement in Question 6: da. Px/Py=1 in nation Ab. Px/Py=3 in nation Bc. Py/Px=1/3 in nation Bd. all of the above8. With reference to the statement in Question 6, if 3X is exchanged for 3Y: .ba. nation A gains 2Xb. nation B gains 6Yc. nation A gains 3Yd. nation B gains 3Y9.With reference to the statement of Question 6, the range of mutually beneficial tradebetween nation A and B is: .ca. 3Y < 3X < 5Yb. 5Y < 3X < 9Yc. 3Y < 3X < 9Yd. 1Y < 3X < 3Y10. If domestically 3X=3Y in nation A, while 1X=1Y domestically in nation B:d..a. there will be no trade between the two nationsb. the relative price of X is the same in both nationsc. the relative price of Y is the same in both nationsd. all of the above11. Ricardo explained the law of comparative advantage on the basis of: a.a. the labor theory of valueb. the opportunity cost theoryc. the law of diminishing returnsd. all of the above12. Which of the following statements is true? d.a. The combined demand for each commodity by the two nations is negatively slopedb. the combined supply for each commodity by the two nations is rising stepwisec.the equilibrium relative commodity price for each commodity with trade is given bytheintersection of the demand and supply of each commodity by the two nationsd. all of the above13. A difference in relative commodity prices between two nations can be based upon adifference in: d.a. factor endowmentsb. technologyc. tastesd. all of the above14. In the trade between a small and a large nation:ba. the large nation is likely to receive all of the gains from tradeb. the small nation is likely to receive all of the gains from tradec. the gains from trade are likely to be equally sharedd. we cannot say15. The Ricardian trade model has been empirically a.a. verifiedb. rejectedc. not testedd. tested but the results were inconclusiveMultiple-Choice Questions Ch.31. A production frontier that is concave from the origin indicates that the nation incursincreasing opportunity costs in the production of:a. commodity X onlyb. commodity 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 absolute slope of the production frontier at the point of productiond. all of the above3. 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 are not used in the same fixed proportion in the productionof allcommoditiesd. for the nation to produce more of a commodity, it must use resources that are less andless suited in the production of the commodity4. Community indifference curves:a. are negatively slopedb. are convex to the originc. should not crossd. all of the above5. 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 onthesame indifference curveb. amount of Y that a nation must give up for one extra unit of X and still remain on thesame indifference curvec.amount of X that a nation must give up for one extra unit of Y to reach a higherindifference curved.amount of Y that a nation must give up for one extra unit of X to reach a higherindifference curve6. Which of the following statements is true with respect tothe 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 indifference curved. all of the above7. Which of the following statements about community indifference curves is true?a. They are entirely unrelated to individuals' community indifference curvesb. they cross, they cannot be used in the analysisc. the problems arising from intersecting community indifference curves can beovercome by the application of the compensation principled. all of the above.8. 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 nation's production frontierd. MRT of X for Y equals MRS of X for Y, and they are equal to Px/Py9. 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 comparative advantage in commodity Yd. none of the above10. Nation 1's share of the gains from trade will be greater:a. the greater is nation 1's demand for nation 2's exportsb. the closer Px/Py with trade settles to nation 2's pretrade Px/Pyc. the weaker is nation 2's demand for nation 1's exportsd. the closer Px/Py with trade settles to nation 1's pretrade Px/Py11. If 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 will fall toward the equilibrium Px/Pyd. all of the above12. With free trade under increasing costs:a. neither nation will specialize completely in productionb. at least one nation will consume above its production frontierc. a small nation will always gain from traded. all of the above13. Which of the following statements is false?a.The gains from trade can be broken down into the gains from exchange and thegainsfrom specializationb. gains from exchange result even without specializationc. gains from specialization result even without exchanged. none of the above14. The gains from exchange with respect to the gains from specialization are always:a. greaterb. smallerc. equald. we cannot say without additional information15. 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.Multiple Choice Questions Ch.41. Which of the following statements is correct?a. The demand for imports is given by the excess demand for the commodityb. the supply of exports is given by the excess supply of the commodityc. the supply curve of exports is flatter than the total supply curve of the commodityd. all of the above2. At a relative commodity price above equilibriuma. the excess demand for a commodity exceeds the excess supply of the commodityb. the quantity demanded of imports exceeds the quantity supplied of exportsc. the commodity price will falld. all of the above3. The offer curve of a nation shows:a. the supply of a nation's importsb. the demand for a nation's exportsc. the trade partner's demand for imports and supply of exportsd. the nation's demand for imports and supply of exports4. The offer curve of a nation bulges toward the axis measuring the nation'sa. import commodityb. export commodityc. export or import commodityd. nontraded commodity5. Export prices must rise for a nation to increase its exports because the nation:a. incurs increasing opportunity costs in export productionb. faces decreasing opportunity costs in producing import substitutesc. faces decreasing marginal rate of substitution in consumptiond. all of the above6. Which of the following statements regarding partial equilibrium analysis is false?a. It relies on traditional demand and supply curvesb. it isolates for study one marketc. it can be used to determine the equilibrium relative commodity price but not theequilibrium quantity with traded. none of the above7. Which of the following statements regarding partial equilibrium analysis is true?a.The demand and supply curves are derived from the nation's production frontier andindifference mapb. It shows the same basic information as offer curvesc. It shows the same equilibrium relative commodity prices as with offer curvesd. all of the above8. In what way does partial equilibrium analysis differ from general equilibrium analysis?a. The former but not the latter can be used to determine the equilibrium price with tradeb.the former but not the latter can be used to determine the equilibrium quantity withtradec.the former but not the latter takes into consideration the interaction among allmarketsin the economyd. the former gives only an approximation to the answer sought.9. If the terms of trade of a nation are 1.5 in a two-nation world, those of the trade partner are:a. 3/4b. 2/3c. 3/2d. 4/310. If the terms of trade increase in a two-nation world, those of the trade partner:a. deteriorateb. improvec. remain unchangedd. any of the above11. If a nation does not affect world prices by its trading, itsoffer curve:a. is a straight lineb. bulges toward the axis measuring the import commodityc. intersects the straight-line segment of the world's offer curved. intersects the positively-sloped portion of the world's offer curve12. If the nation's tastes for its import commodity increases:a. the nation's offer curve rotates toward the axis measuring its import commodityb. the partner's offer curve rotates toward the axis measuring its import commodityc. the partner's offer curve rotates toward the axis measuring its export commodityd. the nation's offer curve rotates toward the axis measuring its export commodity13. If the nation's tastes for its import commodity increases:a. the nation's terms of trade remain unchangedb. the nation's terms of trade deterioratec. the partner's terms of trade deteriorated. any of the above14. If the tastes for a nation import commodity increases, trade volume:a. increasesb. declinesc. remains unchangedd. any of the above15. A deterioration of a nation's terms of trade causes the nation's welfare to:a. deteriorateb. improvec. remain unchangedd. any of the aboveMultiple-Choice Questions ch.51. 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. Which is not an assumption of the H-O modela. the same technology in both nationsb. constant returns to scalec. complete specializationd. equal tastes in both nations3. With equal technology nations will have equal K/L in production if:a. factor prices are the sameb. tastes are the samec. production functions are the samed. all of the above4. We say that commodity Y is K-intensive with respect to X when:a. more K is used in the production of Y than Xb. less L is used in the production of Y than Xc. a lower L/K ratio is used in the production of Y than Xd. a higher K/L is used in the production of X than Y5. When w/r falls, L/Ka. falls in the production of both commoditiesb. rises in the production of both commoditiesc. can rise or falld. is not affected6. A nation is said to have a relative abundance of K if it has a:a. greater absolute amount of Kb. smaller absolute amount of Lc. higher L/K ratiod. lower r/w7. A difference in relative commodity prices between nations can be based on a difference in:a. technologyb. factor endowmentsc. tastesd. all of the above8. In the H-O model, international trade is based mostly on a difference in:a. technologyb. factor endowmentsc. economies of scaled. tastes9. According to the H-O-S model, trade reduces international differences in:a. relative but not absolute factor pricesb. absolute but not relative factor pricesc. both relative and absolute factor pricesd. neither relative nor absolute factor prices10. According to the H-O-S model, international trade will:a. reduce international differences in per capita incomesb. increases international differences in per capita incomesc. may increase or reduce international differences in per capita incomesd. lead to complete specialization11. The H-O model is a general equilibrium model because it deals with:a. production in both nationsb. consumption in both nationsc. trade between the two nationsd. all of the above12. The H-O model is a simplification of the a truly general equilibrium modelbecause it deals with:a. two nationsb. two commoditiesc. two factors of productiond. all of the above13. The Leontief paradox refers to the empirical finding that U.S.a. import substitutes are more K-intensive than exportsb. imports are more K-intensive than exportsc. exports are more L-intensive than importsd. exports are more K-intensive than import substitutes14. From empirical studies, we conclude that the H-O theory:a. must be rejectedb. must be accepted without reservationsc. can be accepted while awaiting further testingd. explains all international trade15. For factor reversal to occur, two commodities must be produced with:a. sufficiently different elasticity of substitution of factorsb. the same K/L ratioc. technologically-fixed factor proportionsd. equal elasticity of substitution of factorsMultiple-Choice Questions Ch. 6:1. Relaxing the assumptions on which the Heckscher-Ohlin theory rests:a. leads to rejection of the theoryb. leaves the theory unaffectedc. requires complementary trade theoriesd. any of the above.1.Which of the following assumptions of the Heckscher-Ohlin theory, when relaxed,leavethe theory unaffected?a. Two nations, two commodities, and two factorsb. both nations use the same technologyc. the same commodity is L-intensive in both nationsd. all of the above2.Which of the following assumptions of the Heckscher-Ohlin theory, when relaxed,require new trade theories?a. Economies of scaleb. incomplete specializationc. similar tastes in both nationsd. the existence of transportation costs3.International trade can be based on economies of scale even if both nations haveidentical:a. factor endowmentsb. tastesc. technologyd. all of the above5. A great deal of international trade:a. is intra-industry tradeb. involves differentiated productsc. is based on monopolistic competitiond. all of the above6. The Heckscher-Ohlin and new trade theories explains most of the trade:a. among industrial countriesb. between developed and developing countriesc. in industrial goodsd. all of the above4.The theory that a nation exports those products for whicha large domestic market existswas advanced by:a. Linderb. Vernonc. Leontiefd. Ohlin8. Intra-industry trade takes place:a. because products are homogeneousb. in order to take advantage of economies of scalec. because perfect competition is the prevalent form of market organizationd. all of the above1.If a nation exports twice as much of a differentiated product that it imports, its intra-industry (T) index is equal to:a. 1.00b. 0.75c. 0.666d. 0.2510. Trade based on technological gaps is closely related to:a. the H-O theoryb. the product-cycle theoryc. Linder's theoryd. all of the above11. Which of the following statements is true with regard to the product-cycle theory?a. It depends on differences in technological changes over time among countriesb. it depends on the opening and the closing of technological gaps among countriesc. it postulates that industrial countries export more advanced products to lessadvanced countriesd. all of the above12. Transport costs:a. increase the price in the importing countryb. reduces the price in the exporting countryc. both of the aboved. neither a nor b.13. Transport costs can be analyzed:a. with demand and supply curvesb. production frontiersc. offer curvesd. all of the above14. The share of transport costs will fall less heavily on the nation:a. with the more elastic demand and supply of the tradedcommodityb. with the less elastic demand and supply of the traded commodityc. exporting agricultural productsd. with the largest domestic market15. A footloose industry is one in which the product:a. gains weight in processingb. loses weight in processingc. both of the aboved. neither a nor b.Multiple-choice Questions Ch.81. Which of the following statements is incorrect?a.An ad valorem tariff is expressed as a percentage of the value of the tradedcommodityb. a specific tariff is expressed as a fixed sum of the value of the traded commodity.c. export tariffs are prohibited by the U.S. Constitutiond. The U.S. uses exclusively the specific tariff2. A small nation is one:a. which does not affect world price by its tradingb. which faces an infinitely elastic world supply curve for its import commodityb.whose consumers will pay a price that exceeds the world price by the amount ofthetariffd. all of the above3. If a small nation increases the tariff on its import commodity, its:a. consumption of the commodity increasesb. production of the commodity decreasesc. imports of the commodity increased. none of the above4.The increase in producer surplus when a small nation imposes a tariff is measured bythearea:a. to the left of the supply curve between the commodity price with and without thetariffb. under the supply curve between the quantity produced with and without the tariffc. under the demand curve between the commodity price with and without the tariffd. none of the above.5. If a small nation increases the tariff on its import commodity:a. the rent of domestic producers of the commodity increasesb. the protection cost of the tariff decreasesc. the deadweight loss decreasesd. all of the above6. Which of the following statements is incorrect with respect to the rate of effectiveprotection?a. for given values of ai and ti, g is larger the greater is tb. for a given value of t and ti, g is larger the greater is a ic. g exceeds, is equal to or is smaller than t, as t i is smallerthan, is equal to or islarger than td. when a i t i exceeds t, the rate of effective protection is positive7. With a i=50%, t i=0, and t=20%, g is:a. 40%b. 20%c. 80%d. 08. The imposition of an import tariff by a small nation:a. increases the relative price of the import commodity for domestic producers andconsumersb.reduces the relative price of the import commodity for domestic producers andconsumersc. increases the relative price of the import commodity for the nation as a wholed. any of the above is possible9. The imposition of an import tariff by a small nation:a. increases the nation's welfareb. reduces the nation's welfarec. leaves the nation's welfare unchangedd. any of the above is possible10. According to the Stolper-Samuelson theorem, the imposition of a tariff by a nation:a. increases the real return of the nation's abundant factorb. increases the real return of the nation's scarce factorc. reduces the real return of the nation's scarce factord. any of the above is possible11. The imposition of an import tariff by a nation results in:a. an increase in relative price of the nation's import commodityb. an increase in the nation's production of its importable commodityc. reduces the real return of the nation's abundant factord. all of the above12. The imposition of an import tariff by a nation can be represented by a rotation of the:a. nation's offer curve away from the axis measuring the commodity of its comparativeadvantageb.the nation's offer curve toward the axis measuring the commodity of itscomparativeadvantagec.the other nation's offer curve toward the axis measuring the commodity of itscomparative advantaged.the other nation's offer curve away from the axis measuring the commodity of itscomparative advantage13. The imposition of an import tariff by a large nation:a. increases the nation's terms of tradeb. reduces the volume of tradec. may increase or reduce the nation's welfared. all of the above14. The imposition of an optimum tariff by a large nation:a. improves its terms of tradeb. reduces the volume of tradec. increases the nation's welfared. all of the above15. The optimum tariff for a small nation is:a. 100%b. 50%c. 0d. depends on elasticitiesMultiple-choice Questions Ch. 9:1. An import quota:a. increases the domestic price of the imported commodityb. reduces domestic consumptionc. increases domestic productiond. all of the above2. An increase in the demand of the imported commodity subject to a given import quota:a. reduces the domestic quantity demanded of the commodityb. increases the domestic production of the commodityc. reduces the domestic price of the commodityd. reduces the producers' surplus3. Adjustment to any shift in the domestic demand or supply of an importable commodityoccurs:a. in domestic price with an import quotab. in the quantity of imports with a tariffc. through the market mechanism with an import tariff but not with an import quotad. all of the above4. An international cartel refers to:a. dumpingb. an organization of exportersc. an international commodity agreementd. voluntary export restraints5. The temporary sale of a commodity at below cost or at a lower price abroad in order todrive foreign producers out of business is called:a. predatory dumpingb. sporadic dumpingc. continuous dumpingd. voluntary export restraints6. The type of dumping which would justify antidumping measures by the country subjectto the dumping is:a. predatory dumpingb. sporadic dumpingc. continuous dumpingd. all of the above7. A fallacious argument for protection is:a. the infant industry argumentb. protection for national defensec. the scientific tariffd. to correct domestic distortions8. Which of the following is true with respect to the infant-industry argument for protection:a. it refers to temporary protection to establish a domestic industryb.to be valid, the return to the grown-up industry must be sufficiently high also torepayfor the higher prices paid by domestic consumers of thecommodity during the infancyperiodc. is inferior to an equivalent production subsidy to the infant industryd. all of the above9. Which of the following is false with respect to strategic trade policy?a. it postulates that a nation can gain by an activist trade policyb. it is practiced to some extent by most industrial nationsc. it can easily be carried outd. all of the above10. Industrial policy refers to:a.an activist policy by the government of an industrial country to stimulate thedevelopment of an industryb.the granting of a subsidy to a domestic industry to stimulate the development ofanindustryc. the granting of a subsidy to a domestic industry to counter a foreign subsidyd. all of the above11. Game theory refers to:a. a method of choosing the optimal strategy in conflict situationsb. the granting of a subsidy to correct a domestic distortionc. the theory of tariff protectiond. none of the above12. Trade protection in the United States is usually providedto:a. low-wage workersb. well-organized industries with large employmentc. industries producing consumer productsd. all of the above13. The most-favored-nation principle refers to:a. extension to all trade partners of any reciprocal tariff reduction negotiated by theU.S. with any of its trade partnersb. multilateral trade negotiationc. the General Agreement on Tariffs and Traded. the International Trade Organization14. On which of the following principles does GATT rest?a. nondiscriminationb. elimination of nontariff barriersc. consultation among nations in solving trade disputesd. all of the above15. Which of the following was not negotiated under the Uruguay Round?a. reduction of tariffs on industrial goodsb. replacement of quotas with tariffsc. reduction of subsidies on industrial products and on agricultural exportsd. liberalization in trade in most servicesMultiple-choice Questions for Ch. 131. Which of the following is false?a. A credit transaction leads to a payment from foreignersb. A debit transaction leads to a payment to foreignersc. A credit transaction is entered with a negative signd. Double-entry bookkeeping refers to each transactionentered twice.2. Which of the following is a debit?a. The export of goodsb. The export of servicesc. Unilateral transfers given to foreignersd. Capital inflows3. Capital inflows:a. refer to an increase in foreign assets in the nationb. refer to a reduction in the nation's assets abroadc. lead to a payment from foreignersd. all of the above4. When a U.S. firm imports goods to be paid in three months the U.S. credits:a. the current accountb. unilateral transfersc. capitald. official reserves5.The receipt of an interest payment on a loan made by a U.S. commercial bank to aforeignresident is entered in the U.S. balance of payments as a:a. credit in the capital accountb. credit in the current accountc. credit in official reservesd. debit in unilateral transfers6. The payment of a dividend by an American company to a foreign stockholder represents:a. a debit in the U.S. capital accountb. a credit in the U.S. capital account。

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Chapter 15MonopolyTRUE/FALSE1. Monopolists can achieve any level of profit they desire because they have unlimited market power.ANS: F DIF: 2 REF: 15-0 NAT: AnalyticLOC: Monopoly TOP: Monopoly MSC: Interpretive2. Even with market power, monopolists cannot achieve any level of profit they desire because they will selllower quantities at higher prices.ANS: T DIF: 2 REF: 15-0 NAT: AnalyticLOC: Monopoly TOP: Monopoly MSC: Interpretive3. One characteristic of a monopoly market is that the product is virtually identical to products produced bycompeting firms.ANS: F DIF: 2 REF: 15-1 NAT: AnalyticLOC: Monopoly TOP: Monopoly MSC: Definitional4. The fundamental cause of monopolies is barriers to entry.ANS: T DIF: 2 REF: 15-1 NAT: AnalyticLOC: Monopoly TOP: Monopoly MSC: Interpretive5. The De Beers Diamond company advertises heavily to promote the sale of all diamonds, not just its own. Thisis evidence that it has a monopoly position to some degree.ANS: T DIF: 1 REF: 15-1 NAT: AnalyticLOC: Monopoly TOP: Monopoly MSC: Interpretive6. The De Beers Diamond company is not worried about differentiating its product from all other gemstones. ANS: F DIF: 1 REF: 15-1 NAT: AnalyticLOC: Monopoly TOP: Monopoly MSC: Interpretive7. The amount of power that a monopoly has depends on whether there are close substitutes for its product. ANS: T DIF: 1 REF: 15-1 NAT: AnalyticLOC: Monopoly TOP: Monopoly MSC: Interpretive8. If the ABC company owns the exclusive rights to mine land in Afghanistan for Lapis Lazuli, a rare stone usedin jewelry which is found only in Afghanistan, the company benefits from a barrier to entry.ANS: T DIF: 1 REF: 15-1 NAT: AnalyticLOC: Monopoly TOP: Monopoly MSC: Applicative9. Copyrights and patents are examples of barriers to entry that afford firms monopoly pricing powers.ANS: T DIF: 2 REF: 15-1 NAT: AnalyticLOC: Monopoly TOP: Patents MSC: Interpretive10. If the government deems a newly invented drug to be truly original, the pharmaceutical company is given theexclusive right to manufacture and sell the drug for 50 years.ANS: F DIF: 1 REF: 15-1 NAT: AnalyticLOC: Monopoly TOP: Patents MSC: Interpretive11. A natural monopoly has economies of scale for most if not all of its range of output.ANS: T DIF: 2 REF: 15-1 NAT: AnalyticLOC: Monopoly TOP: Natural monopoly MSC: Applicative12. Declining average total cost with increased production is one of the defining characteristics of a naturalmonopoly.ANS: T DIF: 1 REF: 15-1 NAT: AnalyticLOC: Monopoly TOP: Natural monopoly MSC: Definitional1002Chapter 15/Monopoly 1003 13. A monopolist maximizes profit by producing an output level where marginal cost equals price.ANS: F DIF: 2 REF: 15-2 NAT: AnalyticLOC: Monopoly TOP: Profit maximization MSC: Interpretive14. A monopolist produces an output level where marginal revenue equals marginal cost and charges a pricewhere marginal cost equals average total cost.ANS: F DIF: 2 REF: 15-2 NAT: AnalyticLOC: Monopoly TOP: Profit maximization MSC: Applicative15. Average revenue for a monopoly is the total revenue divided by the quantity produced.ANS: T DIF: 1 REF: 15-2 NAT: AnalyticLOC: Monopoly TOP: Average revenue MSC: Definitional16. For a monopoly, marginal revenue is often greater than the price they charge for their good.ANS: F DIF: 1 REF: 15-2 NAT: AnalyticLOC: Monopoly TOP: Marginal revenue MSC: Interpretive17. Like competitive firms, monopolies choose to produce a quantity in which marginal revenue equals marginalcost.ANS: T DIF: 2 REF: 15-2 NAT: AnalyticLOC: Monopoly TOP: Profit maximization MSC: Interpretive18. Like competitive firms, monopolies charge a price equal to marginal cost.ANS: F DIF: 2 REF: 15-2 NAT: AnalyticLOC: Monopoly TOP: Profit maximization MSC: Interpretive19. A monopolist produces where P > MC = MR.ANS: T DIF: 2 REF: 15-2 NAT: AnalyticLOC: Monopoly TOP: Profit maximization MSC: Interpretive20. A monopolist produces where P = MC = MR.ANS: F DIF: 2 REF: 15-2 NAT: AnalyticLOC: Monopoly TOP: Profit maximization MSC: Interpretive21. A monopolist does not have a supply curve beca use the firm‟s decision about how much to supply isimpossible to separate from the demand curve it faces.ANS: T DIF: 2 REF: 15-2 NAT: AnalyticLOC: Monopoly TOP: Supply curve MSC: Interpretive22. A monopolist‟s supply curve is vertical.ANS: F DIF: 1 REF: 15-2 NAT: AnalyticLOC: Monopoly TOP: Supply curve MSC: Applicative23. A monopolist‟s supply curve is horizontal.ANS: F DIF: 1 REF: 15-2 NAT: AnalyticLOC: Monopoly TOP: Supply curve MSC: Applicative24. During the life of a drug patent, the monopoly pharmaceutical firm maximizes profit by producing the quantityat which marginal revenue equals marginal cost.ANS: T DIF: 1 REF: 15-2 NAT: AnalyticLOC: Monopoly TOP: Profit maximization MSC: Interpretive25. The socially efficient quantity is found where the demand curve intersects the marginal cost curve.ANS: T DIF: 2 REF: 15-3 NAT: AnalyticLOC: Monopoly TOP: Deadweight loss MSC: Interpretive26. The deadweight loss for a monopolist equals one-half of its profits for any given level of output.ANS: F DIF: 2 REF: 15-3 NAT: AnalyticLOC: Monopoly TOP: Deadweight loss MSC: Interpretive1004 Chapter 15/Monopoly27. A monopoly creates a deadweight loss to society because it earns both short-run and long-run positiveeconomic profits.ANS: F DIF: 2 REF: 15-3 NAT: AnalyticLOC: Monopoly TOP: Deadweight loss MSC: Interpretive28. A monopoly creates a deadweight loss to society because it produces less output than the socially efficientlevel.ANS: T DIF: 2 REF: 15-3 NAT: AnalyticLOC: Monopoly TOP: Deadweight loss MSC: Interpretive29. Suppose a profit-maximizing monopolist faces a constant marginal cost of $10, produces an output level of100 units, and charges a price of $50. The socially efficient level of output is 200 units. Assume that the demand curve and marginal revenue curve are the typical downward-sloping straight lines. The monopoly deadweight loss equals $4,000.ANS: F DIF: 3 REF: 15-3 NAT: AnalyticLOC: Monopoly TOP: Deadweight loss MSC: Analytical30. Suppose a profit-maximizing monopolist faces a constant marginal cost of $10, produces an output level of100 units, and charges a price of $50. The socially efficient level of output is 200 units. Assume that the demand curve and marginal revenue curve are the typical downward-sloping straight lines. The monopoly deadweight loss equals $2,000.ANS: T DIF: 3 REF: 15-3 NAT: AnalyticLOC: Monopoly TOP: Deadweight loss MSC: Analytical31. Suppose a profit-maximizing monopolist faces a constant marginal cost of $20, produces an output level of100 units, and charges a price of $50. The socially efficient level of output is 200 units. Assume that the demand curve and marginal revenue curve are the typical downward-sloping straight lines. The monopoly deadweight loss equals $1,500.ANS: T DIF: 3 REF: 15-3 NAT: AnalyticLOC: Monopoly TOP: Deadweight loss MSC: Analytical32. In order for a firm to maximize profits through price discrimination, the firm must have some market powerand be able to prevent arbitrage.ANS: T DIF: 2 REF: 15-4 NAT: AnalyticLOC: Monopoly TOP: Price discrimination MSC: Interpretive33. Price discrimination is prohibited by antitrust laws.ANS: F DIF: 2 REF: 15-4 NAT: AnalyticLOC: Monopoly TOP: Price discrimination MSC: Interpretive34. A monopolist earns higher profits by charging one price than by practicing price discrimination.ANS: F DIF: 3 REF: 15-4 NAT: AnalyticLOC: Monopoly TOP: Price discrimination MSC: Interpretive35. A monopolist that can practice perfect price discrimination will not impose a deadweight loss on society. ANS: T DIF: 3 REF: 15-4 NAT: AnalyticLOC: Monopoly TOP: Perfect price discrimination MSC: Interpretive36. By selling hardcover books to die-hard fans and paperback books to less enthusiastic readers, the publisher isable to price discriminate and raise its profits.ANS: T DIF: 1 REF: 15-4 NAT: AnalyticLOC: Monopoly TOP: Price discrimination MSC: Interpretive37. Movie theatres charge different prices to different groups of people based on the differing marginal costs thatexist from group to group.ANS: F DIF: 1 REF: 15-4 NAT: AnalyticLOC: Monopoly TOP: Price discrimination MSC: InterpretiveChapter 15/Monopoly 1005 38. Airlines often separate their customers into business travelers and personal travelers by giving a discount tothose travelers who stay over a Saturday night.ANS: T DIF: 1 REF: 15-4 NAT: AnalyticLOC: Monopoly TOP: Price discrimination MSC: Interpretive39. University financial aid can be viewed as a type of price discrimination.ANS: T DIF: 1 REF: 15-4 NAT: AnalyticLOC: Monopoly TOP: Price discrimination MSC: Interpretive40. By offering lower prices to customers who buy a large quantity, a monopoly is price discriminating.ANS: T DIF: 1 REF: 15-4 NAT: AnalyticLOC: Monopoly TOP: Price discrimination MSC: Interpretive41. Goods that do not have close substitutes have downward-sloping demand curves.ANS: T DIF: 1 REF: 15-4 NAT: AnalyticLOC: Monopoly TOP: Demand curve MSC: Interpretive42. If the government regulates the price a natural monopolist can charge to be equal to the firm‟s average totalcost, the firm has no incentive to reduce costs.ANS: T DIF: 2 REF: 15-5 NAT: AnalyticLOC: Monopoly TOP: Regulation MSC: Interpretive43. If the government regulates the price a natural monopolist can charge to be equal to the firm‟s marginal cost,the government will likely need to subsidize the firm.ANS: T DIF: 2 REF: 15-5 NAT: AnalyticLOC: Monopoly TOP: Regulation MSC: Interpretive44. Antitrust laws give the Justice Department the authority to challenge potential mergers between companies inan effort to safeguard society from monopoly power.ANS: T DIF: 1 REF: 15-5 NAT: AnalyticLOC: Monopoly TOP: Antitrust MSC: Interpretive45. Some companies merge in order to lower costs through efficient joint production.ANS: T DIF: 1 REF: 15-5 NAT: AnalyticLOC: Monopoly TOP: Antitrust MSC: Interpretive46. A common solution to monopoly in European countries is public ownership.ANS: T DIF: 1 REF: 15-5 NAT: AnalyticLOC: Monopoly TOP: Monopoly MSC: Interpretive47. The proper level of government intervention is unclear when dealing with a monopoly.ANS: T DIF: 1 REF: 15-5 NAT: AnalyticLOC: Monopoly TOP: Regulation MSC: Interpretive48. The government may choose to do nothing to reduce monopoly inefficiency because the “fix” may be worsethan the problem.ANS: T DIF: 1 REF: 15-5 NAT: AnalyticLOC: Monopoly TOP: Do nothing MSC: Interpretive49. Government intervention always reduces monopoly deadweight loss.ANS: F DIF: 1 REF: 15-5 NAT: AnalyticLOC: Monopoly TOP: Do nothing MSC: Interpretive50. Firms with substantial monopoly power are quite common because many goods are truly unique.ANS: F DIF: 1 REF: 15-6 NAT: AnalyticLOC: Monopoly TOP: Monopoly MSC: Interpretive1006 Chapter 15/MonopolySHORT ANSWER1. Describe how government is involved in creating a monopoly. Why might the government create one? Give anexample.ANS:The government can create a monopoly by giving a single firm the exclusive right to produce some good. Monopolies are created for many reasons. When an industry is characterized by high fixed costs, a single firm can usually supply the entire market at a lower cost than having multiple firms in the industry. Examples include most utility companies. The government also grants sole ownership of inventions through patent laws in order to help eliminate the market failure that is likely to otherwise occur in the markets for those goods. Patents encourage creativity and research and development.DIF: 2 REF: 15-1 NAT: Analytic LOC: MonopolyTOP: Patents | Regulation MSC: Applicative2. What is the defining characteristic of a natural monopoly? Give an example of a natural monopoly.ANS:The defining characteristic of a natural monopoly is when a firm can supply a good or service to an entire market at a lower cost than could two or more firms. The example in the text is a bridge.DIF: 2 REF: 15-1 NAT: Analytic LOC: MonopolyTOP: Natural monopoly MSC: Definitional3. In the market for "home heating" consumers typically have several options (e.g., electricity, heating fuel,natural gas, propane, etc.), yet we often think of firms in this industry as behaving like monopolists. Discuss the context in which your electricity provider is a monopolist. Is this characterization universally applicable?Explain your answer.ANS:In this case, the firms are monopolists in the short run when consumers are unable to change their "home heating" systems. In the long run, consumers can change from electric appliances to natural gas appliances and thus lessen the monopoly power of utility providers. As long as consumers are able to substitute, in the long run the monopoly pricing power is reduced.DIF: 3 REF: 15-2 NAT: Analytic LOC: MonopolyTOP: Monopoly MSC: Analytical4. There has been much discussion of deregulating electricity and natural gas delivery companies in the UnitedStates. Discuss the likely effect of deregulation on prices in these two industries.ANS:If deregulation leads to increased competition, then production and prices should move toward the competitive equilibrium. If deregulation does not lead to increased competition, then the monopoly production and price outcome is likely. The success of deregulation movements hinges on their ability to use markets to promote competitive market outcomes. If the industry is characterized by economies of scale, deregulation may worsen rather than improve the market as costs and prices could rise if more than one firm supplies output to the market. DIF: 2 REF: 15-2 NAT: Analytic LOC: MonopolyTOP: Regulation MSC: Analytical5. Explain how a profit-maximizing monopolist chooses its level of output and the price of its goods.ANS:A profit-maximizing monopolist produces the output level where marginal revenue equals marginal cost and charges the corresponding price from the market demand curve. Note that a monopolist charges a price that exceeds marginal cost, unlike a competitive firm, for which price equals marginal cost.DIF: 2 REF: 15-2 NAT: Analytic LOC: MonopolyTOP: Profit maximization MSC: AnalyticalChapter 15/Monopoly 1007 6. Graphically depict the deadweight loss caused by a monopoly. How is this similar to the deadweight loss fromtaxation?ANS:A profit-maximizing monopolist will choose to produce Q0 units of output and sell at price P0. However, marginal cost is MC0. This is identical to the deadweight loss of taxation when the tax forces a wedge between market price and marginal cost.DIF: 2 REF: 15-3 NAT: Analytic LOC: MonopolyTOP: Deadweight loss MSC: Analytical7. What is the deadweight loss due to profit-maximizing monopoly pricing under the following conditions: Theprice charged for goods produced is $10. The intersection of the marginal revenue and marginal cost curves occurs where output is 100 units and marginal revenue is $5. The socially efficient level of production is 110 units. The demand curve is linear and downward sloping, and the marginal cost curve is constant.ANS:1/2*(110-100)*($10-$5) = $25DIF: 3 REF: 15-3 NAT: Analytic LOC: MonopolyTOP: Deadweight loss MSC: Applicative8. Assume that a monopolist decides to maximize revenue rather than profit. How does this operating objectivechange the size of the deadweight loss? If you are a "benevolent" manager of a monopoly firm and areinterested in reducing the deadweight loss of monopoly, should you maximize profits or maximize revenue?Explain your answer.ANS:A revenue maximizer operates where MR = 0. This solution moves the monopolist closer to the socially optimal competitive outcome and reduces deadweight loss. Revenue maximization is potentially a more "socially" optimal objective for monopoly markets than profit maximization.DIF: 3 REF: 15-3 NAT: Analytic LOC: MonopolyTOP: Total revenue MSC: Analytical9. One example of price discrimination occurs in the publishing industry when a publisher initially releases anexpensive hardcover edition of a popular novel and later releases a cheaper paperback edition. Use thisexample to demonstrate the benefits and potential pitfalls of a price discrimination pricing strategy.ANS:The answer should address the three basic lessons of price discrimination. First, price discrimination is a rational strategy that can lead to higher monopoly profits. Second, price discrimination requires an ability to separate customers according to their willingness to pay. Third, price discrimination can raise economic welfare.DIF: 2 REF: 15-4 NAT: Analytic LOC: MonopolyTOP: Price discrimination MSC: Analytical1008 Chapter 15/Monopoly10. What are the four ways that government policymakers can respond to the problem of monopoly?ANS:First, the government can try to make monopolized industries more competitive by using the power of antitrust laws. Second, the government can regulating the behavior of monopolies, which usually occurs with natural monopolies. Third, the government can own and run a monopoly. Four, the government can do nothing.DIF: 2 REF: 15-5 NAT: Analytic LOC: MonopolyTOP: Government MSC: Interpretive11. Give some examples of the benefits and costs of antitrust laws.ANS:Benefits include promoting competition by preventing mergers and breaking-up companies. Costs are that they may increase cost of operating if they restrict synergy mergers.DIF: 2 REF: 15-5 NAT: Analytic LOC: MonopolyTOP: Antitrust MSC: Interpretive12. In many countries, the government chooses to "internalize" the monopoly by owning monopoly providers ofgoods and services. (In some cases these firms are "nationalized," and the government actually buys orconfiscates firms that operate in monopoly markets). What would be the advantages and disadvantages of such an approach to ensure that the "best interest of society" is promoted in these markets? Explain your answer. ANS:As long as the government "owner" pursues a production and pricing policy that approaches a competitive outcome, social well-being can be enhanced. In this case the government ownership would benefit society. However, in most cases, government owners operate much like private sector monopolists. The political economy of government institutions does not ensure that government owners will pursue socially optimal policy. Also, governments have no incentive to reduce costs or innovate.DIF: 3 REF: 15-5 NAT: Analytic LOC: MonopolyTOP: Government MSC: Analytical13. Why might economists prefer private ownership of monopolies over public ownership of monopolies?ANS:The private monopolist is governed by the market. Even though the market solution is sub-optimal, it may be better than outcomes generated by publicly owned monopolies. Publicly owned monopolies may restrict output to levels below the private market outcome and thus generate an even lower level of social surplus than a privateprofit-maximizing monopolist.Private owners have an incentive to minimize cost as long as they reap benefits in the form of higher profits. Government bureaucrats have no incentive to reduce costs. The losers are customers and taxpayers, whose only recourse is the political system.DIF: 2 REF: 15-5 NAT: Analytic LOC: MonopolyTOP: Monopoly MSC: Analytical14. One solution to the problems of marginal-cost pricing of a regulated natural monopolist is average cost pricing.In this model, the monopolist is allowed to price its production at average total cost. How does average-cost pricing differ from marginal-cost pricing? Does this solution maximize social well-being?ANS:Under average-cost pricing, the monopolist earns zero economic profits, but average-cost pricing does not ensure a socially optimal market solution. Under marginal-marginal cost pricing, the monopolist cannot cover its total costs, so it will earn negative economic profits. (Recall that for a natural monopoly, ATC is declining for all relevant quantities, and MC is below ATC.DIF: 3 REF: 15-5 NAT: Analytic LOC: MonopolyTOP: Regulation MSC: InterpretiveChapter 15/Monopoly 1009 Sec 00 - MonopolyMULTIPLE CHOICE1. Which of the following statements is correct?a.Both a competitive firm and a monopolist are price takers.b.Both a competitive firm and a monopolist are price makers.c. A competitive firm is a price taker, whereas a monopolist is a price maker.d. A competitive firm is a price maker, whereas a monopolist is a price taker.ANS: C DIF: 1 REF: 15-0 NAT: AnalyticLOC: Monopoly TOP: Monopoly MSC: Definitional2. One difference between a perfectly competitive firm and a monopoly is that a perfectly competitive firmproduces wherea.marginal cost equals price, while a monopolist produces where price exceeds marginal cost.b.marginal cost equals price, while a monopolist produces where marginal cost exceeds price.c.price exceeds marginal cost, while a monopolist produces where marginal cost equals price.d.marginal cost exceeds price, while a monopolist produces where marginal cost equals price.ANS: A DIF: 2 REF: 15-0 NAT: AnalyticLOC: Monopoly TOP: Monopoly MSC: Interpretive3. A monopolya.can set the price it charges for its output and earn unlimited profits.b.takes the market price as given and earns small but positive profits.c.can set the price it charges for its output but faces a downward-sloping demand curve so it cannotearn unlimited profits.d.can set the price it charges for its output but faces a horizontal demand curve so it can earnunlimited profits.ANS: C DIF: 2 REF: 15-0 NAT: AnalyticLOC: Monopoly TOP: Monopoly MSC: Interpretive4. A perfectly competitive marketa.may not be in the best interests of society, whereas a monopoly market promotes general economicwell-beingb.promotes general economic well-being, whereas a monopoly market may not be in the best interestsof society.c.and a monopoly market are equally likely to promote general economic well-being.d.is less likely to promote general economic well-being than a monopoly market.ANS: B DIF: 2 REF: 15-0 NAT: AnalyticLOC: Monopoly TOP: Monopoly MSC: Interpretive5. Because monopoly firms do not have to compete with other firms, the outcome in a market with a monopoly isoftena.not in the best interest of society.b.one that fails to maximize total economic well-being.c.inefficient.d.All of the above are correct.ANS: D DIF: 2 REF: 15-0 NAT: AnalyticLOC: Monopoly TOP: Monopoly MSC: Interpretive1010 Chapter 15/MonopolySec 01 - Monopoly - Why Monopolies AriseMULTIPLE CHOICE1. Which of the following is not a characteristic of a monopoly?a.barriers to entryb.one sellerc.one buyerd. a product without close substitutesANS: C DIF: 1 REF: 15-1 NAT: Analytic LOC: Monopoly TOP: Monopoly MSC: Definitional2. The fundamental source of monopoly power isa.barriers to entry.b.profit.c.decreasing average total cost.d. a product without close substitutes.ANS: A DIF: 1 REF: 15-1 NAT: Analytic LOC: Monopoly TOP: Monopoly MSC: Applicative3. A monopoly market is characterized bya.many buyers and sellers.b.“natural” products.c.barriers to entry.d. a Nash equilibrium.ANS: C DIF: 1 REF: 15-1 NAT: Analytic LOC: Monopoly TOP: Monopoly MSC: Definitional4. A benefit of a monopoly isa.lower prices.b. a wide variety of similar products.c.decreasing long-run average total costs.d.greater creativity by authors who can copyright their novels.ANS: D DIF: 2 REF: 15-1 NAT: Analytic LOC: Monopoly TOP: Monopoly MSC: Interpretive5. Which of the following are necessary characteristics of a monopoly?(i)The firm is the sole seller of its product.(ii)The firm's product does not have close substitutes.(iii)The firm generates a large economic profit.(iv)The firm is located in a small geographic market.a.(i) and (ii) onlyb.(i) and (iii) onlyc.(i), (ii), and (iii) onlyd.(i), (ii), (iii), and (iv)ANS: A DIF: 2 REF: 15-1 NAT: Analytic LOC: Monopoly TOP: Monopoly MSC: Interpretive6. The simplest way for a monopoly to arise is for a single firm toa.decrease its price below its competitors‟ prices.b.decrease production to increase demand for its product.c.make pricing decisions jointly with other firms.d.own a key resource.ANS: D DIF: 1 REF: 15-1 NAT: Analytic LOC: Monopoly TOP: Monopoly MSC: InterpretiveChapter 15/Monopoly 10117. Suppose most people regard emeralds, rubies, and sapphires as close substitutes for diamonds. Then DeBeers,a large diamond company, hasa.less incentive to advertise than it would otherwise have.b.less market power than it would otherwise have.c.more control over the price of diamonds than it would otherwise have.d.higher profits than it would otherwise have.ANS: B DIF: 2 REF: 15-1 NAT: AnalyticLOC: Monopoly TOP: Monopoly MSC: Interpretive8. Which of the following is not a reason for the existence of a monopoly?a.sole ownership of a key resourceb.patentsc.copyrightsd.diseconomies of scaleANS: D DIF: 1 REF: 15-1 NAT: AnalyticLOC: Monopoly TOP: Monopoly MSC: Interpretive9. Which of the following would be most likely to have monopoly power?a. a long-distance telephone service providerb. a local cable TV providerc. a large department stored. a gas stationANS: B DIF: 2 REF: 15-1 NAT: AnalyticLOC: Monopoly TOP: Monopoly MSC: Applicative10. A firm that is the sole seller of a product without close substitutes isa.perfectly competitive.b.monopolistically competitive.c.an oligopolist.d. a monopolist.ANS: D DIF: 1 REF: 15-1 NAT: AnalyticLOC: Monopoly TOP: Monopoly MSC: Definitional11. Most markets are not monopolies in the real world becausea.firms usually face downward-sloping demand curves.b.supply curves slope upward.c.price is usually set equal to marginal cost by firms.d.there are reasonable substitutes for most goods.ANS: D DIF: 1 REF: 15-1 NAT: AnalyticLOC: Monopoly TOP: Monopoly MSC: Interpretive12. Which of the following is not an example of a barrier to entry?a.Mighty Mitch‟s Mining Company owns a unique plot of land in Tanzania, under which lies theonly large deposit of Tanzanite in the world.b. A pharmaceutical company obtains a patent for a specific high blood pressure medication.c. A musician obtains a copyright for her original song.d.An entrepreneur opens a popular new restaurant.ANS: D DIF: 2 REF: 15-1 NAT: AnalyticLOC: Monopoly TOP: Barriers to entry MSC: Applicative13. Which of the following is not an example of a barrier to entry?a.Mighty Mitch‟s Mining Company owns a unique plot of land in Tanzania, under which lies theonly large deposit of Tanzanite in the world.b. A college student starts a part-time tutoring business.c. A novelist obtains a copyright for her new book.d. A taxi cab driver in New York City obtains a license to legally provide transportation in New YorkCity.ANS: B DIF: 2 REF: 15-1 NAT: AnalyticLOC: Monopoly TOP: Barriers to entry MSC: Applicative。