【国际经济学专题考试试卷二十一】The Theory of Consumer Choice
《国际经济学》期末复习试卷5份和试题库(含答案)
《国际经济学》模拟试题及参考答案（一）一、名词解释（每小题5 分，共20 分）1.要素禀赋2.倾销3.黄金输送点4.三元悖论二、单项选择题：从下列每小题的四个选项中，选出一项正确的，将其标号填在题后的括号内。
（每小题2 分，共20 分）2.根据相互需求原理，两国均衡的交换比例取决于（）A 两国的绝对优势B 两国的比较优势C 两国的相对需求强度D 两国的要素禀赋3.在当今的国际贸易格局中，产业内贸易更容易发生于（）A 发展中国家与发达国家B 发达国家与发达国家C 发展中国家与发展中国家D 发展中国家和最不发达国家4.课征关税会增加生产者剩余，减少消费者剩余，社会总福利的变化将（）A 上升B 降低C 不变D 不确定5.以下选项中，哪个选项不属于国际收支统计中居民的概念？（）A 外国企业B 非盈利机构C 国际经济组织D 政府7.布雷顿森林体系创立了（）A 以英镑为中心的固定汇率制度B 以美元为中心的固定汇率制度C 以英镑为中心的有管理的浮动汇率制度D 以美元为中心的有管理的浮动汇率制度8.在下列投资方式中，属于国际间接投资的是（）A 在国外设立分公司B 在国外设立独资企业C 在国外设立合资企业D 购买国外企业债券9.经济非均衡的无形传导方式不包括（）A 技术转让B 信息交流C 信息回授D 示范效应10.在斯图旺表中第三象限表示（）A 通货膨胀与国际收支顺差并存B 衰退与国际收支顺差并存C 衰退与国际收支逆差并存D 通货膨胀与国际收支逆差并存三、判断正误题：正确的命题在括号里划"√"，错误的命题在括号里划"×"。
（每小题2 分，共20 分）1.亚当。
斯密的绝对利益学说和大卫•李嘉图的比较利益学说都是从劳动生产率差异的角度来解释国际贸易的起因。
（）2.出口的贫困化增长现象是一种普遍存在的现象，几乎所有国家都曾出现过，并且很难避免。
（）3.国际贸易与国内贸易有相同的起因和特征，彼此之间不存在本质上的差别。
《国际经济学》期末复习试卷5份和试题库(含答案).
《国际经济学》模拟试题及参考答案（一）一、名词解释（每小题 5 分，共 20 分）1.要素禀赋2.倾销3.黄金输送点4.三元悖论二、单项选择题：从下列每小题的四个选项中，选出一项正确的，将其标号填在题后的括号内。
（每小题 2 分，共 20 分）2.根据相互需求原理，两国均衡的交换比例取决于（）A 两国的绝对优势B 两国的比较优势C 两国的相对需求强度D 两国的要素禀赋3.在当今的国际贸易格局中，产业内贸易更容易发生于（）A 发展中国家与发达国家B 发达国家与发达国家C 发展中国家与发展中国家D 发展中国家和最不发达国家4.课征关税会增加生产者剩余，减少消费者剩余，社会总福利的变化将（）A 上升B 降低C 不变D 不确定5.以下选项中，哪个选项不属于国际收支统计中居民的概念？（）A 外国企业B 非盈利机构C 国际经济组织D 政府7.布雷顿森林体系创立了（）A 以英镑为中心的固定汇率制度B 以美元为中心的固定汇率制度C 以英镑为中心的有管理的浮动汇率制度D 以美元为中心的有管理的浮动汇率制度8.在下列投资方式中，属于国际间接投资的是（）A 在国外设立分公司B 在国外设立独资企业C 在国外设立合资企业D 购买国外企业债券9.经济非均衡的无形传导方式不包括（）A 技术转让B 信息交流C 信息回授D 示范效应10.在斯图旺表中第三象限表示（）A 通货膨胀与国际收支顺差并存B 衰退与国际收支顺差并存C 衰退与国际收支逆差并存D 通货膨胀与国际收支逆差并存三、判断正误题：正确的命题在括号里划"√"，错误的命题在括号里划"×"。
（每小题 2 分，共 20 分）1.亚当。
斯密的绝对利益学说和大卫•李嘉图的比较利益学说都是从劳动生产率差异的角度来解释国际贸易的起因。
（）2.出口的贫困化增长现象是一种普遍存在的现象，几乎所有国家都曾出现过，并且很难避免。
国际经济学英文题库（最全版附答案）
国际经济学英文题库（最全版附答案）【国际经济学】英文题库Chapter 1: IntroductionMultiple-Choice Questions1. Which of the following products are not produced at all in the United States *A. Coffee, tea, cocoaB. steel, copper, aluminumC. petroleum, coal, natural gasD. typewriters, computers, airplanes2. International trade is most important to the standard of living of:A. the United States*B. SwitzerlandC. GermanyD. England3. Over time, the economic interdependence of nations has:*A. grownB. diminishedC. remained unchangedD. cannot say4. A rough measure of the degree of economic interdependence of a nation is giv en by:A. the size of the nations' populationB. the percentage of its population to its GDP*C. the percentage of a nation's imports and exports to its GDPD. all of the above5. Economic interdependence is greater for:*A. small nationsB. large nationsC. developed nationsD. developing nations6. The gravity model of international trade predicts that trade between two nat ions is largerA. the larger the two nationsB. the closer the nationsC. the more open are the two nations*D. all of the above7. International economics deals with:A. the flow of goods, services, and payments among nationsB. policies directed at regulating the flow of goods, services, and paymentsC. the effects of policies on the welfare of the nation*D. all of the above8. International trade theory refers to:*A. the microeconomic aspects of international tradeB. the macroeconomic aspects of international tradeC. open economy macroeconomics or international financeD. all of the above9. Which of the following is not the subject matter of international financeA. foreign exchange marketsB. the balance of payments*C. the basis and the gains from tradeD. policies to adjust balance of payments disequilibria10. Economic theory:A. seeks to explain economic eventsB. seeks to predict economic eventsC. abstracts from the many detail that surrounds aneconomic event*D. all of the above11. Which of the following is not an assumption generally made in the study of international economicsA. two nationsB. two commodities*C. perfect international mobility of factorsD. two factors of production12. In the study of international economics:A. international trade policies are examined before the bases for tradeB. adjustment policies are discussed before the balance of paymentsC. the case of many nations is discussed before the two-nations case*D. none of the above13. International trade is similar to interregional trade in that both must ove rcome:*A. distance and spaceB. trade restrictionsC. differences in currenciesD. differences in monetary systems14. The opening or expansion of international trade usually affects all members of society:A. positivelyB. negatively*C. most positively but some negativelyD. most negatively but some positively15. An increase in the dollar price of a foreign currency usually:A. benefit . importers*B. benefits . exportersC. benefit both . importers and . exportersD. harms both . importers and . exporters16. Which of the following statements with regard to international economics is trueA. It is a relatively new field*B. it is a relatively old fieldC. most of its contributors were not economistsD. none of the above思考题：1.为什么学习国际经济学非常重要2.列举体现当前国际经济学问题的一些重要事件，它们为什么重要3.当今世界面临的最重要的国家经济问题是什么全球化的利弊各是什么Chapter 2: The Law of Comparative AdvantageMultiple-Choice Questions1. The Mercantilists did not advocate:* 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:*A. absolute advantageB. comparative advantageC. both absolute and comparative advantageD. neither absolute nor comparative advantage3. What proportion of international trade is based onabsolute advantageA. AllB. most*C. someD. none4. The commodity in which the nation has the smallest absolute disadvantage is the commodity of its:A. absolute disadvantageB. absolute advantageC. comparative disadvantage*D. comparative advantage5. If in a two-nation (A and B), two-commodity (X and Y) world, it is establish ed that nation A has a comparative advantage in commodity X, then nation B must have:A. an absolute advantage in commodity YB. an absolute disadvantage in commodity YC. a comparative disadvantage in commodity Y*D. a comparative advantage in commodity Y6. If with one hour of labor time nation A can produce either 3X or 3Y while na tion B can produce either 1X or 3Y (and labor is the only input):A. nation A has a comparative disadvantage in commodity XB. nation B has a comparative disadvantage in commodity Y*C. 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:A. Px/Py=1 in nation AB. Px/Py=3 in nation BC. Py/Px=1/3 in nation B*D. all of the above8. With reference to the statement in Question 6, if 3X is exchanged for 3Y:A. nation A gains 2X*B. nation B gains 6YC. nation A gains 3YD. nation B gains 3Y9. With reference to the statement of Question 6, the range of mutually benefic ial trade between nation A and B is:A. 3Y < 3X < 5YB. 5Y < 3X < 9Y*C. 3Y < 3X < 9YD. 1Y < 3X < 3Y10. If domestically 3X=3Y in nation A, while 1X=1Y domestically in nation B: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 nations*D. all of the above11. Ricardo explained the law of comparative advantage on the basis of:*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 trueA. The combined demand for each commodity by the two nations is negatively slop edB. the combined supply for each commodity by the two nations is rising stepwiseC. the equilibrium relative commodity price for each commodity with trade isgiven by the intersection of the demand and supply of each commod ity by the two nations*D. all of the above13. A difference in relative commodity prices between two nations can be based upon a difference in:A. factor endowmentsB. technologyC. tastes*D. all of the above14. In the trade between a small and a large nation:A. the large nation is likely to receive all of the gains from trade*B. 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. verifiedB. rejectedC. not testedD. tested but the results were inconclusive思考题：比较优势原理所带来的贸易所得是从何而来的贸易利益又是如何分配的现实世界中比较优势是如何度量的你认为目前中国具有比较优势的商品有哪些这意味着什么比较优势会不会发生变化什么样的原因可能会导致其变化经济学家是如何验证比较优势原理的Chapter 3: The Standard Theory of International TradeMultiple-Choice Questions1. A production frontier that is concave from the origin indicates that the nat ion incurs increasing opportunity costs in the production of:A. commodity X onlyB. commodity Y only*C. 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 o f XB. the opportunity cost of XC. the absolute slope of the production frontier at the point of production*D. 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 produ ction of all commoditiesD. for the nation to produce more of a commodity, it must use resources that ar e less and less suited in the production of the commodity4. Community indifference curves:A. are negatively slopedB. are convex to the originC. should not cross*D. 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 rem ain on the same indifference curve*B. amount of Y that a nation must give up for one extra unit of X and still re main on the same indifference curveC. amount of X that a nation must give up for one extra unit of Y to reach a hi gher indifference curveD. amount of Y that a nation must give up for one extra unit of X to reach a hi gher indifference curve6. Which of the following statements is true with respect to the MRS of X for YA. 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 curve*D. all of the above7. Which of the following statements about community indifference curves is t rueA. They are entirely unrelated to individuals' community indifference curvesB. they cross, they cannot be used in the analysis*C. the problems arising from intersecting community indifference curves can be overcome 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 itsproduction front ierC. 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 X*C. 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 exports*B. 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 atequilibriumC. Px/Py will fall toward the equilibrium Px/Py*D. 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 trade*D. all of the above13. Which of the following statements is falsegains from trade can be broken down into the gains from exchange and the ga ins from specializationB. gains from exchange result even without specialization*C. gains from specialization result even without exchangeD. none of the above14. The gains from exchange with respect to the gains from specialization are a lways:A. greaterB. smallerC. equal*D. 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 different*D. the same and tastes are also the same.思考题：国际贸易的标准理论与大卫.李嘉图的比较优势原理有何异同两国仅仅由于需求偏好不同可以进行市场分工和狐狸贸易吗两国仅仅由于要素禀赋不同和/或生产技术不同可以进行分工和贸易吗Chapter 4: Demand and Supply, Offer Curves, and the T erms of TradeMultiple Choice Questions1. Which of the following statements is correctA. The demand for imports is given by the excess demandfor 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 co mmodity*D. 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 exports*C. 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 exports*D. the nation's demand for imports and supply of exports4. The offer curve of a nation bulges toward the axis measuring the nationsA. import commodity*B. export commodityC. export or import commodityD. nontraded commodity5. Export prices must rise for a nation to increase its exports because the nat ion:A. incurs increasing opportunity costs in export productionB. faces decreasing opportunity costs in producing import substitutesC. faces decreasing marginal rate of substitution in consumption*D. all of the above6. Which of the following statements regarding partial equilibrium analysis is falseA. It relies on traditional demand and supply curvesB. it isolates for study one market*C. it can be used to determine the equilibrium relative commodity price but no t the equilibrium quantity with tradeD. none of the above7. Which of the following statements regarding partial equilibrium analysis is trueA. The demand and supply curve are derived from the nation's production frontie r and indifference mapB. It shows the same basic information as offer curvesC. It shows the same equilibrium relative commodity prices as with offer curves *D. all of the above8. In what way does partial equilibrium analysis differ from general equilibr ium analysisA. 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 quant ity with tradeC. the former but not the latter takes into consideration the interaction among all markets in the economy*D. the former gives only an approximation to the answer sought.9. If the terms of trade of a nation are in a two-nation world, those of the t rade partner are:A. 3/4*B. 2/3C. 3/2D. 4/310. If the terms of trade increase in a two-nation world, those of the trade pa rtner:*A. deteriorateB. improveC. remain unchangedD. any of the above11. If a nation does not affect world prices by its trading, its offer curve:A. is a straight lineB. bulges toward the axis measuring the import commodity*C. 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 commod ityB. the partner's offer curve rotates toward the axis measuring its import commo dityC. the partner's offer curve rotates toward the axis measuring its export commo dity*D. the nation's offer curve rotates toward the axis measuring its export commo dity13. If the nation's tastes for its import commodity increases:A. the nation's terms of trade remain unchanged*B. 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 t o:A. deteriorateB. improveC. remain unchanged*D. any of the above思考题：提供曲线如何推导有何用途两国贸易时的均衡商品价格是如何决定的受哪些因素影响贸易条件的含义是贸易条件的改善意味着什么哪些因素可能导致贸易条件的改善Chapter 5: Factor Endowments and the Heckscher-Ohlin TheoryMultiple-Choice Questions1. The H-O model extends the classical trade model by:A. explaining the basis for comparative advantageB. examining the effect of trade on factor prices*C. both A and BD. neither A nor B2. Which is not an assumption of the H-O model:A. the same technology in both nationsB. constant returns to scale*C. 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 X*C. 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 commodities*B. 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 ratio*D. lower r/w7. A difference in relative commodity prices between nations can be based ona difference in:A. technologyB. factor endowmentsC. tastes*D. all of the above。
《国际经济学(英文版)》选择题汇总版(附答案)11
《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 becauserg.countr.wit.divers.resources.B) the United States is a “Superpower.”C)itar.powe.o.th.Unite.State.make.i.les.dependen.o.anything.D.th.Unite.State.invest.i.man.othe.countries.E.man.countrie.inves.i.th.Unite.States.2.Becaus.th.Constitutio.forbid.restraint.o.interstat.trade.A.th.U.S.ma.no.impos.tariff.o.import.fro.NAFT.countries.B.th.U.S.ma.no.affec.th.internationa.valu.o.th..U.S.C.th.U.S.ma.no.pu.restraint.o.foreig.investment.i.Californi.i.i.involve ..financia.intermediar.i.Ne.Yor.State.D.th.U.S.ma.no.impos.expor.duties.merc.betwee.Florid.an.Hawaii.3.Internationa.economic.ca.b.divide.int.tw.broa.sub-field.A.macr.an.micro.B.develope.an.les.developed.C.monetar.an.barter.D.internationa.trad.an.internationa.money.E.stati.an.dynamic.4.Internationa.monetar.analysi.focuse.o.A.th.rea.sid.o.th.internationa.economy.B.th.internationa.trad.sid.o.th.internationa.economy.C.th.internationa.investmen.sid.o.th.internationa.economy.D.th.issue.o.internationa.cooperatio.betwee.Centra.Banks.E.th.monetar.sid.o.th.internationa.economy.suc.a.currenc.exchange.5.Th.gravit.mode.offer..logica.explanatio.fo.th.fac.tha.A)trad.betwee.Asi.an.th.U.S.ha.grow.faste.tha.NAFT.trade.B.trad.i.service.ha.grow.faste.tha.trad.i.goods.C.trad.i.manufacture.ha.grow.faste.tha.i.agricultura.products.D.Intra-Europea.Unio.trad.exceed.internationa.trad.b.th.Europea.Union.E.th.U.S.trade.mor.wit.Wester.Europ.tha.i.doe.wit.Canada.6.Th.gravit.mode.explain.wh.A)trad.betwee.Swede.an.German.exceed.tha.betwee.Swede.an.Spain.B)countrie.wit.oi.reserve.ten.t.expor.oil.C)capita.ric.countrie.expor.capita.intensiv.products.D.intra-industr.trad.i.relativel.mor.importan.tha.othe.form.o.trad.betw ee.neighborin.countries.E.Europea.countrie.rel.mos.ofte.o.natura.resources.7.Wh.doe.th.gravit.mode.work.rg.becaus.the.wer.engage.i.internationa.trade.ernmen .promotio.o.trad.an.investment.rge.area.whic.raise.th.probabilit.tha.. productiv.activit.wil.tak.plac.withi.th.border.o.tha.country.D) Large economies tend to have large incomes and tend to spend more on imports.rg.economie.ten.t.avoi.tradin.wit.smal.economies.herlands.Belgium.an.Irelan.trad.considerabl.mor.wit.th.Unite.State.tha.wit.man.othe.countries.rg.countries.B.Thi.i.explaine.b.th.gravit.model.sinc.thes.ar.al.smal.countries.C) This fails to be consistent with the gravity model, since these are small countries.D)rg.countrie s.E)Thi.i.explaine.b.th.gravit.model.sinc.the.d.no.shar.borders.9.I.th.present.mos.o.th.export.fro.Chin.areA.manufacture.goods.B.services.C)primar.product.includin.agricultural.D.technolog.intensiv.products.E.overprice.b.worl.marke.standards.parativ.advantag.gain.fro.trad.becaus.i.A.i.producin.export.indirectl.mor.efficientl.tha.i.coul.alternatively.B.i.producin.import.indirectl.mor.efficientl.tha.i.coul.domestically.bo.units.bo.units.E.i.producin.export.whil.outsourcin.services.11.Th.Ricardia.mode.attribute.th.gain.fro.trad.associate.wit.th.princip parativ.advantag.resul.t.A.difference.i.technology.B.difference.i.preferences.C)bo.productivity.D.difference.i.resources.E.gravit.relationship.amon.countries.12..natio.engagin.i.trad.accordin.t.th.Ricardia.mode.wil.fin.it.consum ptio.bundl.A.insid.it.productio.possibilitie.frontier.B)o.it.productio.possibilitie.frontier.C)outsid.it.productio.possibilitie.frontier.D.insid.it.trade-partner'.productio.possibilitie.frontier.E)o.it.trade-partner'.productio.possibilitie.frontier.bo.i.th.onl.facto.o.productio.an.tha.wage.i.th.Unite.State.equa.$2.pe.hou.whil.wage.i.Japa.ar.$1.pe.hour.Productio.cost.woul.pare.t.Japa.i.bo.productivit.equale.4.unit.pe.hou.an.Japan'.1.unit.pe.hour.bo.productivit.equale.3.unit.pe.hou.an.Japan'.2.unit.pe.hour.bo.productivit.equale.2.unit.pe.hou.an.Japan'.3.unit.pe.hour.bo.productivit.equale.1.unit.pe.hou.an.Japan'.2.unit.pe.hour.bo.productivit.equale.1.unit.pe.hou.an.Japan'.4.unit.pe.hour.14.I..two-country.two-produc.world.th.statemen.“parativ.advantag.ove.Franc.i.auto.relativ.t.ships.i .equivalen.t.parativ.advantag.ove.German.i.ships.pare.t.German.i.auto.an.ships.parativ.advantag.ove.Franc.i.auto.an.ships.parativ.advantag.ove.Germany.E.Franc.shoul.produc.autos.15.I.th.Unite.States.productio.possibilit.frontie.wa.flatte.t.th.widge .axis.wherea.Germany'.wa.flatte.t.th.butte.axis.w.kno.tha.A) the United States has no comparative advantageparativ.advantag.i.butter.parativ.advantag.i.butter.parativ.advantage.i.bot.products.parativ.disadvantag.i.widgets.Ch4-Ch51.Th.Ricardia.mode.o.internationa.trad.demonstrate.tha.trad.ca.b.mutua ernment.restric.import.o.som.goods.A)Trad.ca.hav.substantia.effect.o..country'.distributio.o.income.B.Th.Ricardia.mode.i.ofte.incorrec.i.it.predictio.tha.trad.ca.b.mutuall.b eneficial.C. Impor.restriction.ar.th.resul.o.trad.war.betwee.hostil.countries.D.Import.ar.onl.restricte.whe.foreign-mad.good.d.no.mee.domesti.standar d.o.quality.E.Restriction.o.import.ar.intende.t.benefi.domesti.consumers.2.Japan'.trad.policie.wit.regar.t.ric.reflec.th.fac.tha.A.japanes.ric.farmer.hav.significan.politica.power.parativ.advantag.i.ric.productio.an.therefor.export.mos.o .it.ric.crop.C.ther.woul.b.n.gain.fro.trad.availabl.t.Japa.i.i.engage.i.fre.trad.i.r ice.D.ther.ar.gain.fro.trad.tha.Japa.capture.b.engagin.i.fre.trad.i.rice.E.Japa.import.mos.o.th.ric.consume.i.th.country.3.I.th.specifi.factor.model.whic.o.th.followin.i.treate.a..specifi.fac tor.A)LaborB) LandC) ClothD) FoodE) Technology4.Th.specifi.factor.mode.assume.tha.ther.ar._______.good.an._______.fa ctor(s.o.production.A) two; threeB) two; twoC) two; oneD) three; twoE) four; three5.Th.slop.o..country'.productio.possibilit.frontie.wit.clot.measure.o. th.horizonta.an.foo.measure.o.th.vertica.axi.i.th.specifi.factor.mode.i.equa.t._______.an.i._______.a.mor.clot.i.produced.A) -MPLF/MPLC; becomes steeperB) -MPLF/MPLC; becomes flatterC) -MPLF/MPLC; is constantD) -MPLC/MPLF; becomes steeperE) -MPLC/MPLF; is constante.t.produc.clot. wil.b.equa.t.A)th.slop.o.th.productio.possibilit.frontier.bo.i.th.productio.o.clot.time.th.pric.o.cloth.bo.i.th.productio.o.clot.t.th.margina bo.i.th.productio.o.foo.time.th.rati.o.th.pric.o.cloth.t.th .pric.o.food.bo.i.th.productio.o.clot.time.th.pric.o.cloth.bo.i.th.productio.o.clo th.7.I.th.specifi.factor.model.whic.o.th.followin.wil.increas.th.quantit. e.i.clot.production.A)an increase in the price of cloth relative to that of foodB) an increase in the price of food relative to that of clothC) 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..countr.tha.doe.no.engag.i.trad.ca.benefi.fro.trad.onl.i.A)it has an absolute advantage in at least one good.B.i.employ..uniqu.technology.C.pre-trad.an.free-trad.relativ.price.ar.no.identical.D.it.wag.rat.i.belo.th.worl.average.E.pre-trad.an.free-trad.relativ.price.ar.identical.9.I.th.specifi.factor.model.th.effect.o.trad.o.welfar.ar._______.fo.mobil.factors._______e.t.produc.th.exporte.good.an.___ ____e.t.produc.th.importe.good.A)ambiguous; positive; negativeB) ambiguous; negative; positiveC) positive; ambiguous; ambiguousD) negative; ambiguous; ambiguousE) positive; positive; positive10.Th.effec.o.trad.o.specialize.employee.o.import-competin.industrie.w il.b._______.job.an._______.pa.becaus.the.ar.relativel.________.A)fewer; lower; mobileB) fewer; lower; immobileC) more; lower; immobileD) more; higher; mobileE) more; higher; immobile11.Ther.i..bia.i.th.politica.proces.agains.fre.trad.becaus.A)ther.i..hig.correlatio.betwee.th.volum.o.import.an.th.unemploymen.rat e.B.th.gain.fro.fre.trad.canno.b.measured.C.thos.wh.gai.fro.fre.trad.can'.compensat.thos.wh.lose.rg.donation.t.U.S.politica.campaigns.anize.tha.thos.wh.gain.12.In the 2-factor, 2 good Heckscher-Ohlin model, the two countries differinA)taste.an.preferences.itar.capabilities.C.th.siz.o.thei.economies.D.relativ.abundanc.o.factor.o.production.bo.productivities.13.I..countr.produce.goo..(measure.o.th.vertica.axis.an.goo..(measure. o.th.horizonta.axis).the.th.absolut.valu.o.th.slop.o.it.productio.poss ibilit.frontie.i.equa.t.A)th.opportunit.cos.o.goo.X.B.th.pric.o.goo..divide.b.th.pric.o.goo.Y.C.th.pric.o.goo..divide.b.th.pric.o.goo.Y.D.th.opportunit.cos.o.goo.Y.E.th.cos.o.capita.(assumin.tha.goo..i.capita.intensive.divide.b.th.cos. bor.14.I.th.2-factor..goo.Heckscher-Ohli.model.trad.wil._______.th.owner.o ..country'._______.facto.an.wil._______e.tha.facto.inten sively.A)benefit; abundant; exportB)harm; abundant; importC) benefit; scarce; exportD) benefit; scarce; importE) harm; scarce; export15.Th.assumptio.o.diminishin.return.i.th.Heckscher-Ohli.mode.mean.that .unlik.i.th.Ricardia.model.i.i.likel.tha.A.countrie.wil.consum.outsid.thei.productio.possibilit.frontier.B.countrie.wil.benefi.fro.fre.internationa.trade.C.countrie.wil.no.b.full.specialize.i.on.product.parativ.advantag.wil.no.determin.th.directio.o.trade.E.globa.productio.wil.decreas.unde.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 countries will result inA)a.increas.i.th.relativ.pric.o.foo.i.th.U.S.B.a.increas.i.th.relativ.pric.o.foo.i.Japan.C..globa.increas.i.th.relativ.pric.o.food.D..decreas.i.th.relativ.pric.o.foo.i.bot.countries.E.a.increas.i.th.relativ.pric.o.foo.i.bot.countries.17.Startin.fro.a.autark.(no-trade.situatio.wit.Heckscher-Ohli.model.i. bo.abundant.the.onc.trad.begin.A.ren.wil.b.unchange.bu.wage.wil.ris.i.H.B.wage.an.rent.shoul.ris.i.H.C.wage.an.rent.shoul.fal.i.H.D.wage.shoul.fal.an.rent.shoul.ris.i.H.E.wage.shoul.ris.an.rent.shoul.fal.i.H.18.The Leontieff ParadoxA.faile.t.suppor.th.validit.o.th.Heckscher-Ohli.model.parativ.advantage.C.supporte.th.validit.o.th.Heckscher-Ohli.model.D.faile.t.suppor.th.validit.o.th.Ricardia.theory.E.prove.tha.th.U.S.econom.i.differen.fro.al.others.19.Whic.o.th.followin.i.a.assertio.o.th.Heckscher-Ohli.model.A.Facto.pric.equalizatio.wil.occu.onl.i.ther.i.costles.mobilit.o.al.fac tor.acros.borders.B.A.increas.i..country'.labo.suppl.wil.increas.productio.o.bot.th.capit bor-intensiv.good.bo.i.mobil.an.capita.i.not.D.Th.wage-renta.rati.determine.th.capital-labo.rati.i..country'.industr ies.E.Facto.endowment.determin.th.technolog.tha.i.availabl.t..country.whic. parativ.advantage.20.Whic.o.th.followin.i.a.assertio.o.th.Heckscher-Ohli.model.A.A.increas.i..country'bor-int ensiv.goo.an.decreas.productio.o.th.capital-intensiv.good.B.A.increas.i..country'.labo.suppl.wil.increas.productio.o.bot.th.capitbor-intensiv.good.bo.i.mobil.an.capita.i.not.D.Facto.pric.equalizatio.wil.occu.onl.i.ther.i.costles.mobilit.o.al.fac tor.acros.borders.E.Facto.endowment.determin.th.technolog.tha.i.availabl.t..country.whic.parativ.advantage.Ch6-Ch101.If the ratio of price of cloth (PC) divided by the price of food (PF) increases in the international marketplace, thenA.th.term.o.trad.o.clot.exporter.wil.improve.B.al.countrie.woul.b.bette.off.C.th.term.o.trad.o.foo.exporter.wil.improve.D.th.term.o.trad.o.al.countrie.wil.improve.E.th.term.o.trad.o.clot.exporter.wil.worsen.2.If the ratio of price of cloth (PC) divided by the price of food (PF) increases in the international marketplace, thenA.worl.relativ.quantit.o.clot.supplie.wil.increase.B.worl.relativ.quantit.o.clot.supplie.an.demande.wil.increase.C.worl.relativ.quantit.o.clot.supplie.an.demande.wil.decrease.D.worl.relativ.quantit.o.clot.demande.wil.decrease.E.worl.relativ.quantit.o.foo.wil.increase.3.I.th.U.S.(.larg.country.impose..tarif.o.it.importe.good.thi.wil.ten.t.A.hav.n.effec.o.term.o.trade.B.improv.th.term.o.trad.o.th.Unite.States.C.improv.th.term.o.trad.o.al.countries.D.becaus..deterioratio.o.U.S.term.o.trade.E.rais.th.worl.pric.o.th.goo.importe.b.th.Unite.States.4.If Slovenia were a large country in world trade, then if it instituteda large set of subsidies for its exports, this mustA) decrease its marginal propensity to consume.B.hav.n.effec.o.it.term.o.trade.C.improv.it.term.o.trade.D.har.it.term.o.trade.E.har.worl.term.o.trade.5.Internal economies of scale arise when the cost per unitrger.rger.rger.rger.E.remain.constan.ove..broa.rang.o.output.6.Externa.economie.o.scal.wil._______.averag.cos.whe.outpu.i._______.b .________.A) reduce; increased; the industryB) reduce; increased; a firmC) increase; increased; a firmD) increase; increased; the industryE) reduce; reduce; the industry7.I.som.industrie.exhibi.interna.increasin.return.t.scal.i.eac.country .w.shoul.no.expec.t.se.petitio.i.thes.industries.B.intra-industr.trad.betwee.countries.C.inter-industr.trad.betwee.countries.D.hig.level.o.specializatio.i.bot.countries.E.increase.productivit.i.bot.countries.8..learnin.curv.relate._______.t._______.an.i..cas.o._______.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.Pattern.o.interregiona.trad.ar.primaril.determine.b._______.rathe.tha._______.becaus.factor.o.productio.ar.generall.________.A) external economies; natural resources; mobileB) internal economies; external economies; mobileC) external economies; population; immobileD) internal economies; population; immobileE) population; external economies; immobilepetitio.i.associate.wit.A.produc.differentiation.B.price-takin.behavior.C.explici.consideratio.a.th.fir.leve.o.th.strategi.impac.o.othe.firms.p ricin.decisions.D.hig.profi.margin.i.th.lon.run.E.increasin.return.t.scale.petitio.wil.ear.A.positiv.monopol.profit.becaus.eac.sell..differentiate.product.B) zero economic profits because of free entryC.positiv.oligopol.profit.becaus.eac.fir.sell..differentiate.product.D.negativ.economi.profit.becaus.i.ha.economie.o.scale.E.positiv.economi.profi.i.i.engage.i.internationa.trade.mo.for.o.pric.discriminatio.i.internationa.trad.i.A.dumping.B.non-tarif.barriers.C.Voluntar.Expor.Restraints.D.preferentia.trad.arrangements.E.produc.boycotts.13.Conside.th.followin.tw.cases.I.th.first..U.S.fir.purchase.18.o..for eig.firm.I.th.second..U.S.fir.build..ne.productio.facilit.i..foreig.co untry.Bot.ar.________.wit.th.firs.referre.t.a._______.an.th.secon.a.__ ______.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.Specifi.tariff.ar.A.impor.taxe.state.i.specifi.lega.statutes.B.impor.taxe.calculate.a..fixe.charg.fo.eac.uni.o.importe.goods.C.impor.taxe.calculate.a..fractio.o.th.valu.o.th.importe.goods.D.th.sam.a.impor.quotas.E.impor.taxe.calculate.base.solel.o.th.origi.country.15..proble.encountere.whe.implementin.a."infan.industry.tarif.i.tha.A.domesti.consumer.wil.purchas.th.foreig.goo.regardles.o.th.tariff.B) the industry may never "mature."C.mos.industrie.requir.tarif.protectio.whe.the.ar.mature.D.th.tarif.ma.hur.th.industry'.domesti.sales.E.th.tariff.fai.t.protec.th.domesti.producers.16.I.th.countr.levyin.th.tariff.th.tarif.wil.A.increas.bot.consume.an.produce.surplus.B.decreas.bot.th.consume.an.produce.surplus.C.decreas.consume.surplu.an.increas.produce.surplus.D.increas.consume.surplu.an.decreas.produce.surplus.E.decreas.consume.surplu.bu.leav.producer.surplu.unchanged.pute.producer.shif ponents.the.th.eff pute.industr.wil.A.increase.B) decreaseC.remai.th.same.D) depend on whether computers are PCs or "Supercomputers."E.n.longe.apply.ernmen.allow.ra.material.an.othe.intermediat.product.t.ente ..countr.dut.free.thi.generall.result.i.a(an.A.effectiv.tarif.rat.les.tha.th.nomina.tarif.rate.B.nomina.tarif.rat.les.tha.th.effectiv.tarif.rate.C.ris.i.bot.nomina.an.effectiv.tarif.rates.D.fal.i.bot.nomina.an.effectiv.tarif.rates.E.ris.i.onl.th.effectiv.tarif.rate.19.Shoul.th.hom.countr.b."large.relativ.t.it.trad.partners.it.impositi o.o..tarif.o.import.woul.lea.t.a.increas.i.domesti.welfar.i.th.term.o. th.trad.rectangl.excee.th.su.o.th.A.revenu.effec.plu.redistributio.effect.B.protectiv.effec.plu.revenu.effect.C.consumptio.effec.plu.redistributio.effect.D.productio.distortio.effec.plu.consumptio.distortio.effect.E.term.o.trad.gain.20.Th.efficienc.cas.mad.fo.fre.trad.i.tha.a.trad.distortion.suc.a.tari ff.ar.dismantle.an.removed.ernmen.tarif.revenu.wil.decrease.an.therefor.nationa.economi.welfa r.wil.decrease.ernmen.tarif.revenu.wil.decrease.an.therefor.nationa.economi.welfa r.wil.increase.C.deadweigh.losse.fo.producer.an.consumer.wil.decrease.henc.increasin.n ationa.economi.welfare.D.deadweigh.losse.fo.producer.an.consumer.wil.decrease.henc.decreasin.n ationa.economi.welfare.ernmen.tarif.revenu.wil.increase.henc.increasin.nationa.economi.we lfare.anizatio.determine.procedure.fo.th.settlemen.o.internationa .trad.disputes.A) World BankB) World Trade OrganizationC) International Monetary OrganizationD) International Bank for Reconstruction and DevelopmentE) The League of Nations22.Toda.U.S.protectionis.i.concentrate.i.A. high-tec.industries.bor-intensiv.industries.parativ.advantage.pute.intensiv.industries.E.capital-intensiv.industries.23.Th.quantitativ.importanc.o.U.S.protectio.o.th.domesti.clothin.indus tr.i.bes.explaine.b.th.fac.tha.bor.bor.C.mos.o.th.exporter.o.clothin.int.th.U.S.ar.poo.countries.anize.secto.i.th.U.S.E.th.technolog.involve.i.ver.advanced.24.Th.optimu.tarif.i.mos.likel.t.appl.t.A..smal.tarif.impose.b..smal.country.rg.country.rg.tarif.impose.b..smal.country.rg.country.E.a.a.valore.tarif.o..smal.country.25.Th.media.vote.mode.A.work.wel.i.th.are.o.trad.policy.B.i.no.intuitivel.reasonable.C.tend.t.resul.i.biase.tarif.rates.D.doe.no.wor.wel.i.th.are.o.trad.policy.E.i.no.widel.practice.i.th.Unite.States. By: 某某。
【国际经济学专题考试试卷三十四】The Influence of Monetary and Fiscal Policy On Aggregate Demand
Chapter 34The Influence of Monetary and Fiscal Policy On Aggregate DemandTRUE/FALSE1. Both monetary policy and fiscal policy affect aggregate demand.ANS: T DIF: 1 REF: 34-0NAT: Analytic LOC: Monetary and fiscal policyTOP: Monetary policy | Fiscal policy MSC: Definitional2. For the U.S. economy, the most important reason for the downward slope of the aggregate-demand curve isthe interest-rate effect.ANS: T DIF: 2 REF: 34-1NAT: Analytic LOC: Aggregate demand and aggregate supplyTOP: Interest-rate effect MSC: Interpretive3. According to the theory of liquidity preference, the interest rate adjusts to balance the supply of, and demandfor, loanable funds.ANS: F DIF: 2 REF: 34-1NAT: Analytic LOC: The role of moneyTOP: Theory of liquidity preference MSC: Interpretive4. The theory of liquidity preference was developed by Irving Fisher.ANS: F DIF: 1 REF: 34-1NAT: Analytic LOC: The role of moneyTOP: Theory of liquidity preference | Economists MSC: Interpretive5. An increase in the money supply decreases the equilibrium interest rate and shifts the aggregate-demand curveto the right.ANS: T DIF: 2 REF: 34-1NAT: Analytic LOC: Monetary and fiscal policy TOP: Monetary injectionsMSC: Interpretive6. Other things the same, an increase in the price level causes the real value of the dollar to fall in the market forforeign-currency exchange.ANS: F DIF: 2 REF: 34-1NAT: Analytic LOC: Aggregate demand and aggregate supplyTOP: Exchange-rate effect MSC: Applicative7. Changes in monetary policy aimed at reducing aggregate demand involve decreasing the money supply orincreasing the interest rate.ANS: T DIF: 2 REF: 34-1NAT: Analytic LOC: Monetary and fiscal policy TOP: Monetary policyMSC: Interpretive8. For the most part, fiscal policy affects the economy in the short run while monetary policy primarily matters inthe long run.ANS: F DIF: 1 REF: 34-1NAT: Analytic LOC: Monetary and fiscal policyTOP: Fiscal policy | Monetary policy MSC: Interpretive9. For a country such as the U.S., the wealth effect exerts a very important influence on the slope of theaggregate-demand curve, since U.S. wealth is large relative to wealth in most other countries.ANS: F DIF: 1 REF: 34-1NAT: Analytic LOC: Monetary and fiscal policy TOP: Wealth effectMSC: Interpretive10. If the inflation rate is zero, then the nominal and real interest rate are the same.ANS: T DIF: 1 REF: 34-1NAT: Analytic LOC: Monetary and fiscal policyTOP: Nominal interest rate | Real interest rate MSC: Interpretive22512252 Chapter 34/The Influence of Monetary and Fiscal Policy On Aggregate Demand11. In liquidity preference theory, an increase in the interest rate, other things the same, decreases the quantity ofmoney demanded, but does not shift the money demand curve.ANS: T DIF: 1 REF: 34-1NAT: Analytic LOC: Monetary and fiscal policyTOP: Theory of liquidity preference MSC: Analytical12. An increase in the price level shifts the money demand curve to the left, causing interest rates to increase. ANS: F DIF: 1 REF: 34-1NAT: Analytic LOC: Monetary and fiscal policy TOP: Money demandMSC: Interpretive13. An increase in the money supply shifts the aggregate-supply curve to the right.ANS: F DIF: 1 REF: 34-1NAT: Analytic LOC: Monetary and fiscal policy TOP: Monetary policyMSC: Interpretive14. When the Fed increases the money supply, the interest rate decreases. This decrease in the interest rateincreases consumption and investment demand, so the aggregate-demand curve shifts to the right.ANS: T DIF: 2 REF: 34-1NAT: Analytic LOC: Monetary and fiscal policyTOP: Monetary policy | Aggregate-demand curve MSC: Analytical15. Stock prices often rise when the Fed raises interest rates.ANS: F DIF: 1 REF: 34-1NAT: Analytic LOC: Monetary and fiscal policyTOP: Stock market | Monetary policy MSC: Interpretive16. When the Fed announces a target for the federal funds rate, it essentially accommodates the day-to-dayfluctuations in money demand by adjusting the money supply accordingly.ANS: T DIF: 2 REF: 34-1NAT: Analytic LOC: Monetary and fiscal policyTOP: Federal funds rate | Monetary policy MSC: Interpretive17. If the marginal propensity to consume is 6/7, then the multiplier is 7.ANS: T DIF: 2 REF: 34-2NAT: Analytic LOC: Monetary and fiscal policy TOP: Multiplier effectMSC: Applicative18. If the marginal propensity to consume is 4/5, then a decrease in government spending of $1 billion decreasesthe demand for goods and services by $5 billion.ANS: T DIF: 2 REF: 34-2NAT: Analytic LOC: Monetary and fiscal policy TOP: Multiplier effectMSC: Applicative19. Both the multiplier effect and the investment accelerator tend to make the aggregate-demand curve shiftfurther than it does due to an initial increase in government expenditures.ANS: T DIF: 1 REF: 34-2NAT: Analytic LOC: Monetary and fiscal policy TOP: Multiplier effect | Investment MSC: Applicative20. The multiplier is computed as MPC / (1 - MPC).ANS: F DIF: 1 REF: 34-2NAT: Analytic LOC: Monetary and fiscal policy TOP: Multiplier effectMSC: Definitional21. Permanent tax cuts have a larger impact on consumption spending than temporary ones.ANS: T DIF: 1 REF: 34-2NAT: Analytic LOC: Monetary and fiscal policy TOP: TaxesMSC: ApplicativeChapter 34/The Influence of Monetary and Fiscal Policy On Aggregate Demand 2253 22. Some economists, called supply-siders, argue that changes in the money supply exert a strong influence onaggregate supply.ANS: F DIF: 2 REF: 34-2NAT: Analytic LOC: Monetary and fiscal policy TOP: Supply-side economicsMSC: Applicative23. In principle, the government could increase the money supply or increase government expenditures to try tooffset the effects of a wave of pessimism about the future of the economy.ANS: T DIF: 1 REF: 34-3NAT: Analytic LOC: Monetary and fiscal policyTOP: Stabilization policy | Expectations MSC: Applicative24. The main criticism of those who doubt the ability of the government to respond in a useful way to the businesscycle is that the theory by which money and government expenditures change output is flawed.ANS: F DIF: 2 REF: 34-3NAT: Analytic LOC: Monetary and fiscal policy TOP: Stabilization policyMSC: Definitional25. A significant lag for monetary policy is the time it takes to for a change in the money supply to change theeconomy. A significant lag for fiscal policy is the time it takes to pass legislation authorizing it.ANS: T DIF: 1 REF: 34-3NAT: Analytic LOC: Monetary and fiscal policy TOP: Stabilization policyMSC: Definitional26. Unemployment insurance and welfare programs work as automatic stabilizers.ANS: T DIF: 1 REF: 34-3NAT: Analytic LOC: Monetary and fiscal policy TOP: Automatic stabilizersMSC: Definitional27. Depending on the size of the multiplier and crowding-out effects, the rightward shift in aggregate demandfrom a tax cut could be larger or smaller than the tax cut.ANS: T DIF: 2 REF: 34-3NAT: Analytic LOC: Monetary and fiscal policy TOP: Multiplier effectMSC: Analytic28. During recessions, unemployment insurance payments tend to rise.ANS: T DIF: 2 REF: 34-3NAT: Analytic LOC: Monetary and fiscal policy TOP: Automatic stabilizersMSC: Interpretive29. During recessions, the government tends to run a budget deficit.ANS: T DIF: 1 REF: 34-3NAT: Analytic LOC: Monetary and fiscal policy TOP: Automatic stabilizersMSC: Applicative30. An implication of the Employment Act of 1946 is that the government should respond to changes in theprivate economy to stabilize aggregate demand.ANS: T DIF: 2 REF: 34-3NAT: Analytic LOC: Monetary and fiscal policy TOP: Employment Act of 1946MSC: InterpretiveSHORT ANSWER1. What is the difference between monetary policy and fiscal policy?ANS:The Federal Reserve Bank conducts U.S. monetary policy. It consists of policies to affect the financial side of the economy-most notably the supply of money in the economy. Fiscal policy is conducted by the executive and legislative branches of government, and entails decisions about taxes and government spending.DIF: 2 REF: 34-1 NAT: AnalyticLOC: Monetary and fiscal policy TOP: Fiscal policy | Monetary policyMSC: Definitional2254 Chapter 34/The Influence of Monetary and Fiscal Policy On Aggregate Demand2. There are three factors that help explain the slope of the aggregate demand curve. Which two are lessimportant? Why are they less important?ANS:The wealth effect and the exchange-rate effect are less important than the interest-rate effect in the United States. The wealth effect is not very important because it operates through changes in the real value of money, and money is only a small fraction of household wealth. So it is unlikely that changes in the price level will lead to large changes in consumption spending through this channel. The exchange-rate effect is not very important in the United States because trade with other countries represents a relatively small fraction of U.S. GDP. So a change in net-exports due to a change in the exchange rate is likely to have a relatively small impact on real GDP.DIF: 2 REF: 34-1 NAT: AnalyticLOC: Monetary and fiscal policy TOP: Wealth effect | Exchange-rate effectMSC: Analytical3. Explain why the interest rate is the opportunity cost of holding currency. What is the benefit of holdingcurrency?ANS:The nominal interest rate on currency is zero. The next best alternative is to buy a bond and earn interest. Currency is used as a medium of exchange. Bonds are illiquid and so are costly to convert to a medium of exchange.DIF: 2 REF: 34-1 NAT: AnalyticLOC: Monetary and fiscal policy TOP: Currency | Interest ratesMSC: Interpretive4. Describe the process in the money market by which the interest rate reaches its equilibrium value if it startsabove equilibrium.ANS:If the interest rate is above equilibrium, there is an excess supply of money. People with more money than they want to hold given the current interest rate deposit the money in banks and buy bonds. The increase in funds to lend out causes the interest rate to fall. As the interest rate falls, the quantity of money demanded increases, which tends to diminish the excess supply of money.DIF: 3 REF: 34-1 NAT: AnalyticLOC: Monetary and fiscal policy TOP: Money marketMSC: Analytical5. Use the money market to explain the interest-rate effect and its relation to the slope of the aggregate demandcurve.ANS:When the price level falls, people need less money for their transactions. The decreased demand for money leads to a decrease in interest rates as money demand shifts left. Lower interest rates encourage consumption and investment spending. Thus, a decrease in the price level raises the aggregate quantity of goods and services demanded.DIF: 2 REF: 34-1 NAT: AnalyticLOC: Monetary and fiscal policy TOP: Interest-rate effectMSC: Analytical6. Explain the logic according to liquidity preference theory by which an increase in the money supply changesthe aggregate demand curve.ANS:When the money supply increases, the interest rate falls. As the interest rate falls people will want to spend more and firms will want to build more factories and other capital goods. This increase in aggregate demand happens for any given price level, so aggregate demand shifts right.DIF: 2 REF: 34-1 NAT: AnalyticLOC: Monetary and fiscal policy TOP: Monetary policy | Aggregate-demand curveMSC: AnalyticalChapter 34/The Influence of Monetary and Fiscal Policy On Aggregate Demand 2255 7. How does a reduction in the money supply by the Fed make owning stocks less attractive?ANS:The reduction in the money supply raises the interest rate. So the return on bonds increases relative to the return on stocks. The increase in the interest rate also causes spending to fall, so that revenues and profits fall, making shares of ownership in corporations less valuable.DIF: 2 REF: 34-1 NAT: AnalyticLOC: Monetary and fiscal policy TOP: Money supply | Stock marketMSC: Applicative8. Suppose that the government spends more on a missile defense program. What does this do to aggregatedemand? How is you answer affected by the presence of the multiplier, crowding-out, taxes, andinvestment-accelerator effects?ANS:The increase in expenditures means that government spending rises. The aggregate demand curve shifts to the right. Aggregate demand shifts farther if there is a multiplier effect or an investment accelerator and shifts less if there is crowding out or if taxes are raised to increase government expenditures.DIF: 2 REF: 34-2 NAT: AnalyticLOC: Monetary and fiscal policy TOP: Multiplier effect | Crowding out | InvestmentMSC: Interpretive9. Suppose that there are no crowding-out effects and the MPC is .9. By how much must the governmentincrease expenditures to shift the aggregate demand curve right by $10 billion?ANS:An MPC of .9 means the multiplier = 1/(1 - .9) = 10. The increase in aggregate demand equals the multiplier times the change in government expenditures. So to increase aggregate demand by $10 billion, the government would have to increase expenditures by $1 billion.DIF: 2 REF: 34-2 NAT: AnalyticLOC: Monetary and fiscal policy TOP: Multiplier effectMSC: Analytical10. Suppose that the government increases expenditures by $150 billion while increasing taxes by $150 billion.Suppose that the MPC is .80 and that there are no crowding out or accelerator effects. What is the combined effects of these changes? Why is the combined change not equal to zero?ANS:The multiplier is 1/(1-MPC) = 1/(1-.8) = 1/.2 = 5. The increase of $150 in government expenditures leads to a shift of $150 billion x 5 = $750 billion in aggregate demand. The increase in taxes decreases income by $150 and so initially decreases consumption by $150 billion x MPC = $150 billion x .8 = $120 billion. This change in consumption will create a multiplier effect of $120 billion x 5 = $600. Thus the net change is $750 billion - $600 billion = $150 billion. The changes don’t cancel each other out, because a tax increase decreases consumption by less than the tax increase.DIF: 3 REF: 34-3 NAT: AnalyticLOC: Monetary and fiscal policy TOP: Multiplier effect | TaxesMSC: Analytical11. Suppose that consumers become pessimistic about the future health of the economy. What will happen toaggregate demand and to output? What might the president and Congress have to do to keep output stable? ANS:As consumers become pessimistic about the future of the economy, they cut their expenditures so that aggregate demand shifts left and output falls. The president and Congress could adjust fiscal policy to increase aggregate demand. They could either increase government spending, or cut taxes, or both.DIF: 2 REF: 34-3 NAT: AnalyticLOC: Monetary and fiscal policy TOP: Stabilization policy | ExpectationsMSC: Analytical2256 Chapter 34/The Influence of Monetary and Fiscal Policy On Aggregate Demand12. Explain how unemployment insurance acts as an automatic stabilizer.ANS:As income falls, unemployment rises. More people will apply for unemployment compensation from the government which raises government spending. An increase in government spending tends to increase aggregate demand, output, and income thereby lessening the effects of the recession.DIF: 2 REF: 34-3 NAT: AnalyticLOC: Monetary and fiscal policy TOP: Automatic stabilizersMSC: ApplicativeSec00 - The Influence of Monetary and Fiscal Policy on Aggregate Demand MULTIPLE CHOICE1. Shifts in the aggregate-demand curve can cause fluctuations ina.neither the level of output nor the level of prices.b.the level of output, but not in the level of prices.c.the level of prices, but not in the level of output.d.the level of output and in the level of prices.ANS: D DIF: 1 REF: 34-0NAT: Analytic LOC: Aggregate demand and aggregate supplyTOP: Economic fluctuations | Aggregate demand MSC: Interpretive2. Fiscal policy affects the economya.only in the short run.b.only in the long run.c.in both the short and long run.d.in neither the short nor the long run.ANS: C DIF: 1 REF: 34-0NAT: Analytic LOC: Monetary and fiscal policy TOP: Fiscal policyMSC: InterpretiveSec01 - The Influence of Monetary and Fiscal Policy on Aggregate Demand - How Monetary Policy Influences Aggregate DemandMULTIPLE CHOICE1. The interest-rate effecta.depends on the idea that increases in interest rates increase the quantity of money demanded.b.depends on the idea that increases in interest rates increase the quantity of money supplied.c.is the most important reason, in the case of the United States, for the downward slope of theaggregate-demand curve.d.is the least important reason, in the case of the United States, for the downward slope of theaggregate-demand curve.ANS: C DIF: 2 REF: 34-1NAT: Analytic LOC: Aggregate demand and aggregate supplyTOP: Interest-rate effect MSC: Interpretive2. The interest-rate effecta.depends on the idea that increases in interest rates decrease the quantity of goods and servicesdemanded.b.depends on the idea that increases in interest rates decrease the quantity of goods and servicessupplied.c.is responsible for the downward slope of the money-demand curve.d.is the least important reason, in the case of the United States, for the downward slope of theaggregate-demand curve.ANS: A DIF: 2 REF: 34-1NAT: Analytic LOC: Aggregate demand and aggregate supplyTOP: Interest-rate effect MSC: InterpretiveChapter 34/The Influence of Monetary and Fiscal Policy On Aggregate Demand 22573. The wealth effect stems from the idea that a higher price levela.increases the real value of households’ money holdings.b.decreases the real value of households’ money holdings.c.increases the real value of the domestic currency in foreign-exchange markets.d.decreases the real value of the domestic currency in foreign-exchange markets.ANS: B DIF: 2 REF: 34-1NAT: Analytic LOC: Aggregate demand and aggregate supplyTOP: Wealth effect MSC: Interpretive4. With respect to their impact on aggregate demand for the U.S. economy, which of the following represents thecorrect ordering of the wealth effect, interest-rate effect, and exchange-rate effect from most important to least important?a.wealth effect, exchange-rate effect, interest-rate effectb.exchange-rate effect, interest-rate effect, wealth effectc.interest-rate effect, wealth effect, exchange-rate effectd.interest-rate effect, exchange-rate effect, wealth effectANS: D DIF: 2 REF: 34-1NAT: Analytic LOC: Aggregate demand and aggregate supplyTOP: Aggregate-demand curve MSC: Interpretive5. For the U.S. economy, which of the following is the most important reason for the downward slope of theaggregate-demand curve?a.the wealth effectb.the interest-rate effectc.the exchange-rate effectd.the real-wage effectANS: B DIF: 1 REF: 34-1NAT: Analytic LOC: Monetary and fiscal policy TOP: Interest-rate effectMSC: Definitional6. Which of the following is likely more important for explaining the slope of the aggregate-demand curve of asmall economy than it is for the United States?a.the wealth effectb.the interest-rate effectc.the exchange-rate effectd.the real-wage effectANS: C DIF: 1 REF: 34-1NAT: Analytic LOC: Monetary and fiscal policy TOP: Exchange-rate effectMSC: Interpretive7. For the U.S. economy, which of the following helps explain the slope of the aggregate-demand curve?a.An increase in the price level decreases the interest rate.b.An increase in the price level increases the interest rate.c.An increase in the money supply decreases the interest rate.d.An increase in the money supply increases the interest rate.ANS: B DIF: 2 REF: 34-1NAT: Analytic LOC: Aggregate demand and aggregate supplyTOP: Interest-rate effect MSC: Analytic2258 Chapter 34/The Influence of Monetary and Fiscal Policy On Aggregate Demand8. The wealth effect helps explain the slope of the aggregate-demand curve. This effect isa.relatively important in the United States because expenditures on consumer durables is veryresponsive to changes in wealth.b.relatively important in the United States because consumption spending is a large part of GDP.c.relatively unimportant in the United States because money holdings are a small part of consumerwealth.d.relatively unimportant because it takes a large change in wealth to cause a significant change ininterest rates.ANS: C DIF: 1 REF: 34-1NAT: Analytic LOC: Monetary and fiscal policy TOP: Wealth effectMSC: Definitional9. Which of the following claims concerning the importance of effects that explain the slope of the U.S.aggregate-demand curve is correct?a.The exchange-rate effect is relatively small because exports and imports are a small part of realGDP.b.The interest-rate effect is relatively small because investment spending is not very responsive tointerest rate changes.c.The wealth effect is relatively large because money holdings are a significant portion of mosthouseholds' wealth.d.None of the above is correct.ANS: A DIF: 1 REF: 34-1NAT: Analytic LOC: Monetary and fiscal policy TOP: Aggregate-demand slope MSC: Interpretive10. Which particular interest rate(s) do we attempt to explain using the theory of liquidity preference?a.only the nominal interest rateb.both the nominal interest rate and the real interest ratec.only the interest rate on long-term bondsd.only the interest rate on short-term government bondsANS: B DIF: 2 REF: 34-1NAT: Analytic LOC: The role of moneyTOP: Theory of liquidity preference MSC: Interpretive11. According to John Maynard Keynes,a.the demand for money in a count ry is determined entirely by that nation’s central bank.b.the supply of money in a country is determined by the overall wealth of the citizens of that country.c.the interest rate adjusts to balance the supply of, and demand for, money.d.the interest rate adjusts to balance the supply of, and demand for, goods and services.ANS: C DIF: 2 REF: 34-1NAT: Analytic LOC: The role of moneyTOP: Theory of liquidity preference MSC: Interpretive12. According to the theory of liquidity preference,a.if the interest rate is below the equilibrium level, then the quantity of money people want to hold isless than the quantity of money the Fed has created.b.if the interest rate is above the equilibrium level, then the quantity of money people want to hold isgreater than the quantity of money the Fed has created.c.the demand for money is represented by a downward-sloping line on a supply-and-demand graph.d.All of the above are correct.ANS: C DIF: 2 REF: 34-1NAT: Analytic LOC: The role of moneyTOP: Theory of liquidity preference MSC: InterpretiveChapter 34/The Influence of Monetary and Fiscal Policy On Aggregate Demand 225913. According to classical macroeconomic theory,a.the price level is sticky in the short run and it plays only a minor role in the short-run adjustmentprocess.b.for any given level of output, the interest rate adjusts to balance the supply of, and demand for,money.c.output is determined by the supplies of capital and labor and the available production technology.d.All of the above are correct.ANS: C DIF: 2 REF: 34-1NAT: Analytic LOC: The role of money TOP: Classical dichotomyMSC: Interpretive14. According to classical macroeconomic theory,a.output is determined by the supplies of capital and labor and the available production technology.b.for any given level of output, the interest rate adjusts to balance the supply of, and demand for,loanable funds.c.given output and the interest rate, the price level adjusts to balance the supply of, and demand for,money.d.All of the above are correct.ANS: D DIF: 2 REF: 34-1NAT: Analytic LOC: The role of money TOP: Classical dichotomyMSC: Interpretive15. According to the liquidity preference theory, an increase in the overall price level of 10 percenta.increases the equilibrium interest rate, which in turn decreases the quantity of goods and servicesdemanded.b.decreases the equilibrium interest rate, which in turn increases the quantity of goods and servicesdemanded.c.increases the quantity of money supplied by 10 percent, leaving the interest rate and the quantity ofgoods and services demanded unchanged.d.decreases the quantity of money demanded by 10 percent, leaving the interest rate and the quantityof goods and services demanded unchanged.ANS: A DIF: 2 REF: 34-1NAT: Analytic LOC: The role of moneyTOP: Theory of liquidity preference MSC: Interpretive16. On the graph that depicts the theory of liquidity preference,a.the demand-for-money curve is vertical.b.the supply-of-money curve is vertical.c.the interest rate is measured along the horizontal axis.d.the price level is measured along the vertical axis.ANS: B DIF: 1 REF: 34-1NAT: Analytic LOC: The role of moneyTOP: Theory of liquidity preference MSC: Interpretive17. Using the liquidity-preference model, when the Federal Reserve increases the money supply,a.the equilibrium interest rate decreases.b.the aggregate-demand curve shifts to the left.c.the quantity of goods and services demanded is unchanged for a given price level.d.the long-run aggregate-supply curve shifts to the right.ANS: A DIF: 2 REF: 34-1NAT: Analytic LOC: Monetary and fiscal policyTOP: Theory of liquidity preference | Monetary policy MSC: Interpretive2260 Chapter 34/The Influence of Monetary and Fiscal Policy On Aggregate Demand18. In recent years, the Federal Reserve has conducted policy by setting a target for thea.size of the money supply.b.growth rate of the money supply.c.federal funds rate.d.discount rate.ANS: C DIF: 2 REF: 34-1NAT: Analytic LOC: Monetary and fiscal policyTOP: Federal funds rate | Monetary policy MSC: Definitional19. While a television news re porter might state that “Today the Fed lowered the federal funds rate from 5.5percent to 5.25 percent,” a more precise account of the Fed’s action would be as follows:a.“Today the Fed told its bond traders to conduct open-market operations in such a way that theequilibrium federal funds rate would decrease to 5.25 percent.”b.“Today the Fed lowered the discount rate by a quarter of a percentage point, and this action willforce the federal funds rate to drop by the same amount.”c.“Today the Fed to ok steps to decrease the money supply by an amount that is sufficient to decreasethe federal funds rate to 5.25 percent.”d.“Today the Fed took a step toward contracting aggregate demand, and this was done by loweringthe federal funds rate to 5.25 perc ent.”ANS: A DIF: 2 REF: 34-1NAT: Analytic LOC: Monetary and fiscal policyTOP: Federal funds rate | Monetary policy MSC: Interpretive20. Monetary policya.must be described in terms of interest-rate targets.b.must be described in terms of money-supply targets.c.can be described either in terms of the money supply or in terms of the interest rate.d.cannot be accurately described in terms of the interest rate or in terms of the money supply.ANS: C DIF: 2 REF: 34-1NAT: Analytic LOC: Monetary and fiscal policy TOP: Monetary policyMSC: Interpretive21. Which of the following is not a reason the aggregate-demand curve slopes downward? As the price levelincreases,a.firms may believe the relative price of their output has risen.b.real wealth declines.c.the interest rate increases.d.the exchange rate increases.ANS: A DIF: 1 REF: 34-1NAT: Analytic LOC: Monetary and fiscal policy TOP: Aggregate-demand slope MSC: Definitional22. Which of the following would not be an expected response from a decrease in the price level and so help toexplain the slope of the aggregate-demand curve?a.When interest rates fall, Sleepwell Hotels decides to build some new hotels.b.The exchange rate falls, so French restaurants in Paris buy more Iowa pork.c.Janet feels wealthier because of the price-level decrease and so she decides to remodel herbathroom.d.With prices down and wages fixed by contract, Millio’s Frozen Pizzas decides to lay off workers. ANS: D DIF: 1 REF: 34-1NAT: Analytic LOC: Monetary and fiscal policy TOP: Aggregate demand slope MSC: Interpretive。
【国际经济学专题考试试卷九】International Trade
Chapter 9Application: International TradeTRUE/FALSE1. Trade decisions are based on the principle of absolute advantage.ANS: F DIF: 1 REF: 9-1NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Absolute advantage MSC: Interpretive2. The sum of consumer and producer surplus measures the total benefits that buyers and sellers receive fromparticipating in a market.ANS: T DIF: 2 REF: 9-1NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Total surplus MSC: Interpretive3. According to the principle of comparative advantage, all countries can benefit from trading with one anotherbecause trade allows each country to specialize in doing what it does best.ANS: T DIF: 1 REF: 9-1NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Comparative advantage MSC: Interpretive4. The world price of cotton is the highest price of cotton observed anywhere in the world.ANS: F DIF: 1 REF: 9-1NAT: Analytic LOC: Gains from trade, specialization, and tradeTOP: Prices MSC: Definitional5. If the world price of a good is greater than the domestic price in a country that can engage in internationaltrade, then that country becomes an importer of that good.ANS: F DIF: 2 REF: 9-1NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: International trade | Prices MSC: Interpretive6. Without free trade, the domestic price of a good must be equal to the world price of a good.ANS: F DIF: 2 REF: 9-1NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Prices MSC: Interpretive7. The nation of Aviana soon will abandon its no-trade policy and adopt a free-trade policy. If the world priceof goose meat is $3 per pound and the domestic price of goose meat without trade is $2 per pound, then Aviana should export goose meat.ANS: T DIF: 2 REF: 9-1NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Prices | Comparative advantage | Exports MSC: Interpretive8. If Argentina exports oranges to the rest of the world, Argentina's producers of oranges are worse off, andArgentina's consumers of oranges are better off, as a result of trade.ANS: F DIF: 2 REF: 9-2NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Trade | Economic welfare MSC: Applicative9. If a country’s domesti c price of a good is lower than the world price, then that country has a comparativeadvantage in producing that good.ANS: T DIF: 2 REF: 9-2NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Comparative advantage | Prices MSC: Interpretive594Chapter 9 /Application: International Trade 595 10. When a country allows international trade and becomes an importer of a good, domestic producers of the goodare better off, and domestic consumers of the good are worse off.ANS: F DIF: 2 REF: 9-2NAT: Analytic LOC: Gains from trade, specialization, and tradeTOP: Gains from trade MSC: Interpretive11. If the United Kingdom imports tea cups from other countries, then U.K. producers of tea cups are better off,and U.K. consumers of tea cups are worse off, as a result of trade.ANS: F DIF: 2 REF: 9-2NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Trade | Economic welfare MSC: Applicative12. If Belgium exports chocolate to the rest of the world, then Belgian chocolate producers benefit from higherproducer surplus, Belgian chocolate consumers are worse off because of lower consumer surplus, and total surplus in Belgium increases because of the exports of chocolate.ANS: T DIF: 2 REF: 9-2NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Trade | Economic welfare MSC: Applicative13. In principle, trade can make a nation better off, because the gains to the winners exceed the losses to thelosers.ANS: T DIF: 1 REF: 9-2NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Trade | Economic welfare MSC: Interpretive14. Suppose the Ivory Coast, a small country, imports wheat at the world price of $4 per bushel. If the Ivory Coastimposes a tariff of $1 per bushel on imported wheat, then, other things equal, the price of wheat in Ivory Coast will increase, but by less than $1.ANS: F DIF: 2 REF: 9-2NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Tariffs | Prices MSC: Interpretive15. The small-economy assumption is necessary to analyze the gains and losses from international trade.ANS: F DIF: 1 REF: 9-2NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: International trade | Assumptions MSC: Interpretive16. The greater the elasticities of supply and demand, the smaller are the gains from trade.ANS: F DIF: 3 REF: 9-2NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Gains from trade | Price elasticities of demand and supplyMSC: Applicative17. If a tariff is placed on watches, the price of both domestic and imported watches will rise by the amount of thetariff.ANS: T DIF: 2 REF: 9-2NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Tariffs | Prices MSC: Interpretive18. When a government imposes a tariff on a product, the domestic price will equal the world price.ANS: F DIF: 2 REF: 9-2NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Tariffs | Prices MSC: Interpretive19. A tariff increases the quantity of imports and moves the market farther from its equilibrium without trade. ANS: F DIF: 2 REF: 9-2NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Tariffs | Imports MSC: Applicative596 Chapter 9 /Application: International Trade20. When a country abandons no-trade policies in favor of free-trade policies and becomes an importer of steel,then the domestic price of steel will increase as a result.ANS: F DIF: 2 REF: 9-2NAT: Analytic LOC: Gains from trade, specialization, and tradeTOP: Imports | Prices MSC: Interpretive21. When a country that imports shoes imposes a tariff on shoes, buyers of shoes in that country become worseoff.ANS: T DIF: 1 REF: 9-2NAT: Analytic LOC: Gains from trade, specialization, and tradeTOP: Tariffs MSC: Interpretive22. When a country that imports shoes imposes a tariff on shoes, buyers of shoes in that country become worse offand sellers of shoes in that country become better off.ANS: T DIF: 2 REF: 9-2NAT: Analytic LOC: Gains from trade, specialization, and tradeTOP: Tariffs MSC: Interpretive23. Deadweight loss measures the decrease in total surplus that results from a tariff or quota.ANS: T DIF: 2 REF: 9-2NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Deadweight losses MSC: Interpretive24. If a small country imposes a tariff on an imported good, domestic sellers will gain producer surplus, thegovernment will gain tariff revenue, and domestic consumers will gain consumer surplus.ANS: F DIF: 2 REF: 9-2NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Tariffs | Economic welfare MSC: Applicative25. Domestic consumers gain and domestic producers lose when the government imposes a tariff on imports. ANS: F DIF: 2 REF: 9-2NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Tariffs MSC: Interpretive26. The imposition of a tariff on imported wine will increase the domestic price of wine, decrease the quantity ofwine imported, and increase the quantity of wine produced domestically.ANS: T DIF: 2 REF: 9-2NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Prices | Imports | Tariffs MSC: Interpretive27. Suppose that Australia imposes a tariff on imported beef. If the increase in producer surplus is $100 million,the increase in tariff revenue is $200 million, and the reduction in consumer surplus is $500 million, thedeadweight loss of the tariff is $300 million.ANS: F DIF: 2 REF: 9-2NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Tariffs | Deadweight losses MSC: Applicative28. Suppose Ecuador imposes a tariff on imported bananas. If the increase in producer surplus is $50 million, thereduction in consumer surplus is $150 million, and the deadweight loss of the tariff is $30 million, then the tariff generates $130 million in revenue for the government.ANS: T DIF: 3 REF: 9-2NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Tariffs | Deadweight losses MSC: Applicative29. Tariffs cause deadweight loss because they move the price of an imported product closer to the equilibriumwithout trade, thus reducing the gains from trade.ANS: T DIF: 2 REF: 9-2NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Tariffs | Deadweight losses MSC: InterpretiveChapter 9 /Application: International Trade 597 30. Import quotas and tariffs both cause the quantity of imports to fall.ANS: T DIF: 1 REF: 9-2NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Tariffs | Import quotas MSC: Interpretive31. Import quotas and tariffs make domestic sellers better off and domestic buyers worse off.ANS: T DIF: 2 REF: 9-2NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Tariffs | Import quotas | Economic welfare MSC: Interpretive32. Economists agree that trade ought to be restricted if free trade means that domestic jobs might be lost becauseof foreign competition.ANS: F DIF: 2 REF: 9-3NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Trade policy | Employment MSC: Interpretive33. Free trade causes job losses in industries in which a country does not have a comparative advantage, but it alsocauses job gains in industries in which the country has a comparative advantage.ANS: T DIF: 2 REF: 9-3NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Comparative advantage | Employment MSC: Interpretive34. Most economists support the infant-industry argument because it is so easy to implement in practice.ANS: F DIF: 1 REF: 9-3NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Trade policy MSC: Interpretive35. If Honduras were to subsidize the production of wool blankets and sell them in Sweden at artificially lowprices, the Swedish economy would be worse off.ANS: F DIF: 2 REF: 9-3NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Trade policy | Economic welfare MSC: Interpretive36. Policymakers often consider trade restrictions in order to protect domestic producers from foreign competitors. ANS: T DIF: 1 REF: 9-3NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Trade policy MSC: Interpretive37. GATT is an example of a successful unilateral approach to achieving free trade.ANS: F DIF: 2 REF: 9-3NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: GATT MSC: Interpretive38. NAFTA is an example of a multilateral approach to achieving free trade.ANS: T DIF: 2 REF: 9-3NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: NAFTA MSC: Interpretive39. The rules established under the General Agreement on Tariffs and Trade (GATT) are enforced by aninternational body called the World Trade Organization (WTO).ANS: T DIF: 1 REF: 9-3NAT: Analytic LOC: Gains from trade, specialization, and tradeTOP: GATT | WTO MSC: Definitional40. A multilateral approach to free trade has greater potential to increase the gains from trade than a unilateralapproach, because the multilateral approach can reduce trade restrictions abroad as well as at home.ANS: T DIF: 2 REF: 9-3NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Trade policy MSC: Interpretive598 Chapter 9 /Application: International Trade41. The results of a 2007 Los Angeles Times poll suggest that a significant majority of Americans believe that freeinternational trade helps the American economy.ANS: F DIF: 2 REF: 9-4NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Trade policy MSC: Interpretive42. The results of a 2007 Los Angeles Times poll suggest that the percentage of Americans who believe trade isharmful to the economy exceeds the percentage of Americans who believe trade is beneficial to the economy. ANS: T DIF: 2 REF: 9-4NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Trade policy MSC: Interpretive43. Most economists view the United States as an ongoing experiment that raises serious doubts about the virtuesof free trade.ANS: F DIF: 1 REF: 9-4NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Trade policy MSC: InterpretiveChapter 9 /Application: International Trade 599 SHORT ANSWER1. Use the graph to answer the following questions about CDs.a.What is the equilibrium price of CDs before trade?b.What is the equilibrium quantity of CDs before trade?c.What is the price of CDs after trade is allowed?d.What is the quantity of CDs exported after trade is allowed?e.What is the amount of consumer surplus before trade?f.What is the amount of consumer surplus after trade?g.What is the amount of producer surplus before trade?h.What is the amount of producer surplus after trade?i.What is the amount of total surplus before trade?j.What is the amount of total surplus after trade?k.What is the change in total surplus because of trade?ANS:a.$12b.50c.$15d.30e.$250f.$122.50g.$250h.$422.50i.$500j.$545k.$45DIF: 2 REF: 9-2 NAT: AnalyticLOC: Gains from trade, specialization and trade TOP: Exports | Economic welfare MSC: Applicative600 Chapter 9 /Application: International Trade2. Using the graph below, answer the following questions about hammers.a.What is the equilibrium price of hammers before trade?b.What is the equilibrium quantity of hammers before trade?c.What is the price of hammers after trade is allowed?d.What is the quantity of hammers imported after trade is allowed?e.What is the amount of consumer surplus before trade?f.What is the amount of consumer surplus after trade?g.What is the amount of producer surplus before trade?h.What is the amount of producer surplus after trade?i.What is the amount of total surplus before trade?j.What is the amount of total surplus after trade?k.What is the change in total surplus because of trade?ANS:a.$14b.90c.$10d.85e.$360f.$810g.$405h.$125i.$765j.$935k.$170DIF: 2 REF: 9-2 NAT: AnalyticLOC: Gains from trade, specialization and trade TOP: Imports | Economic welfare MSC: ApplicativeChapter 9 /Application: International Trade 601 3. Using the graph, assume that the government imposes a $1 tariff on hammers. Answer the following questionsgiven this information.a.What is the domestic price and quantity demanded of hammers after the tariff is imposed?b.What is the quantity of hammers imported before the tariff?c.What is the quantity of hammers imported after the tariff?d.What would be the amount of consumer surplus before the tariff?e.What would be the amount of consumer surplus after the tariff?f.What would be the amount of producer surplus before the tariff?g.What would be the amount of producer surplus after the tariff?h.What would be the amount of government revenue because of the tariff?i.What would be the total amount of deadweight loss due to the tariff?ANS:a.$6, 84b.66c.44d.$384e.$294f.$45g.$80h.$44i.$11DIF: 2 REF: 9-2 NAT: AnalyticLOC: Gains from trade, specialization and trade TOP: Tariffs | Economic welfare MSC: Applicative4. How does an import quota differ from an equivalent tariff?ANS:Both the import quota and the tariff raise the domestic price of the good, reduce the welfare of domestic consumers, increase the welfare of domestic producers, and cause deadweight losses. The only difference for the economy is that the tariff raises revenue for the government, while the import quota creates surplus for license holders.DIF: 2 REF: 9-2 NAT: AnalyticLOC: Gains from trade, specialization and trade TOP: Tariffs | Import quotasMSC: Interpretive602 Chapter 9 /Application: International Trade5. Characterize the two different approaches a nation can take to achieve free trade. Does one approach have anadvantage over the other?ANS:A unilateral approach is when a country removes its trade restrictions on its own. A multilateral approach is when a country removes its trade restrictions while other countries do the same. A multilateral approach has two advantages. The first is that it has the potential to result in freer trade because it can reduce trade restrictions abroad as well as at home. If international negotiations fail, however, the result could be more restricted trade than under a unilateral approach. Also, the multilateral approach may have a political advantage and can sometimes win political support when a unilateral reduction cannot.DIF: 2 REF: 9-3 NAT: AnalyticLOC: Gains from trade, specialization and trade TOP: Trade policyMSC: Interpretive6. What are the arguments in favor of trade restrictions, and what are the counterarguments? According to mosteconomists, do any of these arguments really justify trade restrictions? Explain.ANS:Arguments mentioned in the text include the jobs argument, the national security argument, the infant industry argument, the unfair competition argument, and the protection-as-a-bargaining-chip argument. These arguments and counter-arguments are outlined in section 9-3 of the text. Most economists would dismiss the jobs argument, the infant industry argument, and the unfair competition argument on strictly economic grounds. The bargaining-chip argument carries high risks of economic harm if the threat doesn't work. The national-security argument balances economic loss from trade restriction against the benefit of long-term national survival, and is probably the argument that economists would most likely buy if it were clear that the industry being protected was clearly crucial to national security.DIF: 2 REF: 9-3 NAT: AnalyticLOC: Gains from trade, specialization and trade TOP: Trade policyMSC: InterpretiveSec00 - Application: International TradeMULTIPLE CHOICE1. An important factor in the decline of the U.S. textile industry over the past 100 or so years isa.foreign competitors that can produce quality textile goods at low cost.b.lower prices of goods that are substitutes for clothing.c. a decrease in Americans’ demand for clothing, due to increased incomes and the fact that clothingis an inferior good.d.the fact that the minimum wage in the U.S. has failed to keep pace with the cost of living.ANS: A DIF: 1 REF: 9-0NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: International trade MSC: Interpretive2. With which of the Ten Principles of Economics is the study of international trade most closely connected?a.People face tradeoffs.b.Trade can make everyone better off.ernments can sometimes improve market outcomes.d.Prices rise when the government prints too much money.ANS: B DIF: 1 REF: 9-0NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: International trade MSC: Interpretive3. Which of the following tools and concepts is useful in the analysis of international trade?a.total surplusb.domestic supplyc.equilibrium priced.All of the above are correct.ANS: D DIF: 1 REF: 9-0NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: International trade MSC: InterpretiveChapter 9 /Application: International Trade 6034. A logical starting point from which the study of international trade begins isa.the recognition that not all markets are competitive.b.the recognition that government intervention in markets sometimes enhances the economic welfareof the society.c.the principle of absolute advantage.d.the principle of comparative advantage.ANS: D DIF: 1 REF: 9-0NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: International trade | Comparative advantage MSC: InterpretiveSec01 - Application: International Trade - The Determinants of TradeMULTIPLE CHOICE1. What is the fundamental basis for trade among nations?a.shortages or surpluses in nations that do not tradeb.misguided economic policiesc.absolute advantageparative advantageANS: D DIF: 1 REF: 9-1NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: International trade | Comparative advantage MSC: Interpretive2. Patterns of trade among nations are primarily determined bya.cultural considerations.b.political considerations.parative advantage.d.differences in the income elasticity of demand among nations.ANS: C DIF: 1 REF: 9-1NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: International trade | Comparative advantage MSC: Interpretive3. The nation of Pineland forbids international trade. In Pineland, you can buy 1 pound of fish for 2 pounds ofbeef. In other countries, you can buy 1 pound of fish for 1.5 pounds of beef. These facts indicate thata.Pineland has a comparative advantage, relative to other countries, in producing fish.b.other countries have a comparative advantage, relative to Pineland, in producing beef.c.the price of beef in Pineland exceeds the world price of beef.d.if Pineland were to allow trade, it would import fish.ANS: D DIF: 2 REF: 9-1NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Comparative advantage | World price MSC: Applicative4. The nation of Waterland forbids international trade. In Waterland, you can obtain a computer by trading 2bicycles. In other countries, you can obtain a computer by trading 3 bicycles. These facts indicate thata.if Waterland were to allow trade, it would export computers.b.Waterland has an absolute advantage, relative to other countries, in producing computers.c.Waterland has a comparative advantage, relative to other countries, in producing bicycles.d.All of the above are correct.ANS: A DIF: 2 REF: 9-1NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Comparative advantage MSC: Applicative5. The principle of comparative advantage asserts thata.not all countries can benefit from trade with other countries.b.the world price of a good will prevail in all countries, regardless of whether those countries allowinternational trade in that good.c.countries can become better off by exporting goods, but they cannot become better off by importinggoods.d.countries can become better off by specializing in what they do best.ANS: D DIF: 1 REF: 9-1NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Comparative advantage MSC: Interpretive6. A tax on an imported good is called aa.quota.b.tariff.c.supply tax.d.trade tax.ANS: B DIF: 1 REF: 9-1NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Tariffs MSC: Definitional7. A tariff is aa.limit on how much of a good can be exported.b.limit on how much of a good can be imported.c.tax on an exported good.d.tax on an imported good.ANS: D DIF: 1 REF: 9-1NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Tariffs MSC: Definitional8. The price of a good that prevails in a world market is called thea.absolute price.b.relative price.parative price.d.world price.ANS: D DIF: 1 REF: 9-1NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Price | International trade MSC: Definitional9. The price of sugar that prevails in international markets is called thea.export price of sugar.b.import price of sugar.parative-advantage price of sugar.d.world price of sugar.ANS: D DIF: 1 REF: 9-1NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Price | International trade MSC: Definitional10. If a country allows trade and, for a certain good, the domestic price without trade is higher than the worldprice,a.the country will be an exporter of the good.b.the country will be an importer of the good.c.the country will be neither an exporter nor an importer of the good.d.Additional information is needed about demand to determine whether the country will be anexporter of the good, an importer of the good, or neither.ANS: B DIF: 2 REF: 9-1NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Prices | Imports MSC: Interpretive11. If a country allows trade and, for a certain good, the domestic price without trade is lower than the world price,a.the country will be an exporter of the good.b.the country will be an importer of the good.c.the country will be neither an exporter nor an importer of the good.d.Additional information is needed about demand to determine whether the country will be anexporter of the good, an importer of the good, or neither.ANS: A DIF: 2 REF: 9-1NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Prices | Exports MSC: Interpretive12. For any country, if the world price of zinc is higher than the domestic price of zinc without trade, that countryshoulda.export zinc, since that country has a comparative advantage in zinc.b.import zinc, since that country has a comparative advantage in zinc.c.neither export nor import zinc, since that country cannot gain from trade.d.neither export nor import zinc, since that country already produces zinc at a low cost compared toother countries.ANS: A DIF: 2 REF: 9-1NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Exports | Comparative advantage MSC: Applicative13. If the world price of textiles is higher than Vietnam’s domestic price of textiles without trade, then Vietnama.should import textiles.b.has a comparative advantage in textiles.c.should produce just enough textiles to meet its domestic demand.d.should refrain altogether from producing textiles.ANS: B DIF: 2 REF: 9-1NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Prices | Comparative advantage MSC: Interpretive14. Assume, for Singapore, that the domestic price of soybeans without international trade is higher than the worldprice of soybeans. This suggests that, in the production of soybeans,a.Singapore has a comparative advantage over other countries and Singapore will import soybeans.b.Singapore has a comparative advantage over other countries and Singapore will export soybeans.c.other countries have a comparative advantage over Singapore and Singapore will import soybeans.d.other countries have a comparative advantage over Singapore and Singapore will export soybeans. ANS: C DIF: 2 REF: 9-1NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Prices | Comparative advantage MSC: Applicative15. Assume, for the U.S., that the domestic price of beef without international trade is lower than the world priceof beef. This suggests that, in the production of beef,a.the U.S. has a comparative advantage over other countries and the U.S. will export beef.b.the U.S. has a comparative advantage over other countries and the U.S. will import beef.c.other countries have a comparative advantage over the U.S. and the U.S. will export beef.d.other countries have a comparative advantage over the U.S. and the U.S. will import beef.ANS: A DIF: 2 REF: 9-1NAT: Analytic LOC: Gains from trade, specialization and tradeTOP: Prices | Comparative advantage MSC: Applicative。
【国际经济学专题考试试卷八】the Costs of Taxation
Chapter 8Application: the Costs of TaxationTRUE/FALSE1. Total surplus is always equal to the sum of consumer surplus and producer surplus.ANS: F DIF: 2 REF: 8-1 NAT: AnalyticLOC: Supply and demand TOP: Total surplusMSC: Interpretive2. Total surplus in a market does not change when the government imposes a tax on that market because the lossof consumer surplus and producer surplus is equal to the gain of government revenue.ANS: F DIF: 2 REF: 8-1 NAT: AnalyticLOC: Supply and demand TOP: Total surplusMSC: Interpretive3. When a tax is imposed on buyers, consumer surplus and producer surplus both decrease.ANS: T DIF: 2 REF: 8-1 NAT: AnalyticLOC: Supply and demand TOP: Consumer surplus | Producer surplusMSC: Interpretive4. When a tax is imposed on buyers, consumer surplus decreases but producer surplus increases.ANS: F DIF: 2 REF: 8-1 NAT: AnalyticLOC: Supply and demand TOP: Consumer surplus | Producer surplusMSC: Interpretive5. When a tax is imposed on sellers, producer surplus decreases but consumer surplus increases.ANS: F DIF: 2 REF: 8-1 NAT: AnalyticLOC: Supply and demand TOP: Consumer surplus | Producer surplusMSC: Interpretive6. When a tax is imposed on sellers, consumer surplus and producer surplus both decrease.ANS: T DIF: 2 REF: 8-1 NAT: AnalyticLOC: Supply and demand TOP: Consumer surplus | Producer surplusMSC: Interpretive7. Taxes affect market participants by increasing the price paid by the buyer and received by the seller.ANS: F DIF: 1 REF: 8-1 NAT: AnalyticLOC: Supply and demand TOP: Taxes MSC: Applicative8. Taxes affect market participants by increasing the price paid by the buyer and decreasing the price received bythe seller.ANS: T DIF: 1 REF: 8-1 NAT: AnalyticLOC: Supply and demand TOP: Taxes MSC: Applicative9. A tax raises the price received by sellers and lowers the price paid by buyers.ANS: F DIF: 1 REF: 8-1 NAT: AnalyticLOC: Supply and demand TOP: Efficiency MSC: Interpretive10. Normally, both buyers and sellers of a good become worse off when the good is taxed.ANS: T DIF: 2 REF: 8-1 NAT: AnalyticLOC: Supply and demand TOP: Welfare MSC: Interpretive11. When a good is taxed, the tax revenue collected by the government equals the decrease in the welfare ofbuyers and sellers caused by the tax.ANS: F DIF: 2 REF: 8-1 NAT: AnalyticLOC: Supply and demand TOP: Welfare | Tax revenueMSC: Interpretive529530 Chapter 8 /Application: the Costs of Taxation12. A tax places a wedge between the price buyers pay and the price sellers receive.ANS: T DIF: 1 REF: 8-1 NAT: AnalyticLOC: Supply and demand TOP: Efficiency MSC: Interpretive13. A tax on a good causes the size of the market to increase.ANS: F DIF: 1 REF: 8-1 NAT: AnalyticLOC: Supply and demand TOP: Efficiency MSC: Interpretive14. A tax on a good causes the size of the market to shrink.ANS: T DIF: 1 REF: 8-1 NAT: AnalyticLOC: Supply and demand TOP: Efficiency MSC: Interpretive15. When a tax is imposed, the loss of consumer surplus and producer surplus as a result of the tax exceeds the taxrevenue collected by the government.ANS: T DIF: 2 REF: 8-1 NAT: AnalyticLOC: Supply and demand TOP: Welfare MSC: Interpretive16. Economists use the government’s tax revenue to measure the public benefit from a tax.ANS: T DIF: 2 REF: 8-1 NAT: AnalyticLOC: Supply and demand TOP: Welfare MSC: Interpretive17. Because taxes distort incentives, they cause markets to allocate resources inefficiently.ANS: T DIF: 2 REF: 8-1 NAT: AnalyticLOC: Supply and demand TOP: Efficiency MSC: Interpretive18. Taxes cause deadweight losses because they prevent buyers and sellers from realizing some of the gains fromtrade.ANS: T DIF: 2 REF: 8-1 NAT: AnalyticLOC: Supply and demand TOP: Deadweight lossMSC: Interpretive19. As the price elasticities of supply and demand increase, the deadweight loss from a tax increases.ANS: T DIF: 2 REF: 8-2 NAT: AnalyticLOC: Elasticity TOP: Elasticity | Deadweight loss MSC: Applicative20. The greater the elasticity of demand, the smaller the deadweight loss of a tax.ANS: F DIF: 2 REF: 8-2 NAT: AnalyticLOC: Elasticity TOP: Elasticity | Deadweight loss MSC: Interpretive21. The more inelastic are demand and supply, the greater is the deadweight loss of a tax.ANS: F DIF: 2 REF: 8-2 NAT: AnalyticLOC: Elasticity TOP: Elasticity | Deadweight loss MSC: Applicative22. The elasticities of the supply and demand curves in the market for cigarettes affect how much a tax distortsthat market.ANS: T DIF: 2 REF: 8-2 NAT: AnalyticLOC: Elasticity TOP: Elasticity | Deadweight loss MSC: Interpretive23. If a tax did not induce buyers or sellers to change their behavior, it would not cause a deadweight loss. ANS: T DIF: 2 REF: 8-2 NAT: AnalyticLOC: Supply and demand TOP: Deadweight lossMSC: Interpretive24. The most important tax in the U.S. economy is the tax on corporations’ profits.ANS: F DIF: 1 REF: 8-2 NAT: AnalyticLOC: Supply and demand TOP: Labor MSC: Definitional25. The Social Security tax, and to a large extent, the federal income tax, are labor taxes.ANS: T DIF: 1 REF: 8-2 NAT: AnalyticLOC: Supply and demand TOP: Labor MSC: InterpretiveChapter 8 /Application: the Costs of Taxation 531 26. Taxes on labor tend to increase the number of hours that people choose to work.ANS: F DIF: 1 REF: 8-2 NAT: AnalyticLOC: Supply and demand TOP: Labor MSC: Interpretive27. Taxes on labor tend to encourage the elderly to retire early.ANS: T DIF: 1 REF: 8-2 NAT: AnalyticLOC: Supply and demand TOP: Labor MSC: Interpretive28. Taxes on labor tend to encourage second earners to stay at home rather than work in the labor force.ANS: T DIF: 1 REF: 8-2 NAT: AnalyticLOC: Supply and demand TOP: Labor MSC: Interpretive29. Economists disagree on whether labor taxes have a small or large deadweight loss.ANS: T DIF: 1 REF: 8-2 NAT: AnalyticLOC: Supply and demand TOP: Labor | Deadweight lossMSC: Definitional30. The demand for bread is less elastic than the demand for donuts; hence, a tax on bread will create a largerdeadweight loss than will the same tax on donuts, other things equal.ANS: F DIF: 2 REF: 8-2 NAT: AnalyticLOC: Elasticity TOP: Elasticity | Deadweight loss MSC: Applicative31. The larger the deadweight loss from taxation, the larger the cost of government programs.ANS: T DIF: 2 REF: 8-2 NAT: AnalyticLOC: Supply and demand TOP: Deadweight lossMSC: Interpretive32. A tax on insulin is likely to cause a very large deadweight loss to society.ANS: F DIF: 2 REF: 8-2 NAT: AnalyticLOC: Elasticity TOP: Deadweight loss | Elasticity MSC: Applicative33. The deadweight loss of a tax rises even more rapidly than the size of the tax.ANS: T DIF: 2 REF: 8-3 NAT: AnalyticLOC: Supply and demand TOP: Deadweight lossMSC: Interpretive34. As the size of a tax increases, the government's tax revenue rises, then falls.ANS: T DIF: 2 REF: 8-3 NAT: AnalyticLOC: Supply and demand TOP: Laffer curve MSC: Interpretive35. Tax revenues increase in direct proportion to increases in the size of the tax.ANS: F DIF: 2 REF: 8-3 NAT: AnalyticLOC: Supply and demand TOP: Tax revenue MSC: Interpretive36. If the size of a tax doubles, the deadweight loss doubles.ANS: F DIF: 3 REF: 8-3 NAT: AnalyticLOC: Supply and demand TOP: Deadweight lossMSC: Applicative37. If the size of a tax triples, the deadweight loss increases by a factor of six.ANS: F DIF: 3 REF: 8-3 NAT: AnalyticLOC: Supply and demand TOP: Deadweight lossMSC: Applicative38. A tax on unimproved land falls entirely on landowners because the supply of land is perfectly inelastic. ANS: T DIF: 2 REF: 8-3 NAT: AnalyticLOC: Supply and demand TOP: Land tax MSC: Interpretive39. Because the supply of land is perfectly elastic, the deadweight loss of a tax on land is very large.ANS: F DIF: 2 REF: 8-3 NAT: AnalyticLOC: Elasticity TOP: Land tax | Deadweight loss MSC: Interpretive532 Chapter 8 /Application: the Costs of Taxation40. Economist Arthur Laffer made the argument that tax rates in the United States were so high that reducing therates would increase tax revenue.ANS: T DIF: 2 REF: 8-3 NAT: AnalyticLOC: Supply and demand TOP: Laffer curve MSC: Definitional41. The Laffer curve is the curve showing how tax revenue varies as the size of the tax varies.ANS: T DIF: 2 REF: 8-3 NAT: AnalyticLOC: Supply and demand TOP: Laffer curve MSC: Definitional42. The result of the large tax cuts in the first Reagan Administration demonstrated very convincingly that ArthurLaffer was correct when he asserted that cuts in tax rates would increase tax revenue.ANS: F DIF: 2 REF: 8-3 NAT: AnalyticLOC: Supply and demand TOP: Laffer curve MSC: Interpretive43. The idea that tax cuts would increase the quantity of labor supplied, thus increasing tax revenue, became knowas supply-side economics.ANS: T DIF: 2 REF: 8-3 NAT: AnalyticLOC: Supply and demand TOP: Supply-side economicsMSC: Definitional44. The Laffer curve illustrates how taxes in markets with greater elasticities of demand compare to taxes inmarkets with smaller elasticities of supply.ANS: F DIF: 2 REF: 8-3 NAT: AnalyticLOC: Supply and demand TOP: Laffer curve MSC: Definitional45. The more elastic are supply and demand in a market, the greater are the distortions caused by a tax on thatmarket, and the more likely it is that a tax cut in that market will raise tax revenue.ANS: T DIF: 3 REF: 8-3 NAT: AnalyticLOC: Elasticity TOP: Elasticity | Deadweight loss MSC: Applicative46. When the government imposes taxes on buyers and sellers of a good, society loses some of the benefits ofmarket efficiency.ANS: T DIF: 1 REF: 8-4 NAT: AnalyticLOC: Supply and demand TOP: Efficiency MSC: InterpretiveChapter 8 /Application: the Costs of Taxation 533SHORT ANSWER 1.Suppose the government levies a tax of the vertical distance from point A to point B. Using the graph shown,determine the value of each of the following: a. equilibrium price before the tax b. consumer surplus before the tax c. producer surplus before the tax d. total surplus before the tax e. consumer surplus after the tax f. producer surplus after the taxg. total tax revenue to the governmenth. total surplus (consumer surplus+producer surplus+tax revenue) after the tax i. deadweight loss1002003004005006007008009001000246810121416182022ANS:a. $10b. $3,600c. $2,400d. $6,000e. $900f. $600g. $3,000h. $4,500i.$1,500DIF: 3REF: 8-1NAT: AnalyticLOC: Supply and demandTOP: Welfare MSC: Applicative2.John has been in the habit of mowing Willa's lawn each week for $20. John's opportunity cost is $15, and Willa would be willing to pay $25 to have her lawn mowed. What is the maximum tax the government can impose on lawn mowing without discouraging John and Willa from continuing their mutually beneficial arrangement?ANS:If the tax is less than $10, there will exist a price at which both John and Willa will still benefit from thelawn-mowing arrangement. If the tax is $10, a price can be set which will leave John and Willa neither better off nor worse off from the lawn-mowing arrangement. If the tax is greater than $10, all possible prices will leave at least one of the parties worse off from the lawn-mowing arrangement.DIF: 2REF: 8-1NAT: AnalyticLOC: Supply and demandTOP: Efficiency MSC: Applicative534 Chapter 8 /Application: the Costs of Taxation 3.Use the following graph shown to fill in the table that follows.DemandSupplyQ1Q2P1P2P3ABDFC GP4QuantityPriceDIF: 2REF: 8-1NAT: AnalyticLOC: Supply and demandTOP: Welfare MSC: Applicative4.Suppose that instead of a supply-demand diagram, you are given the following information:Q s = 100 + 3P Q d = 400 - 2PFrom this information compute equilibrium price and quantity. Now suppose that a tax is placed on buyers so that Q d = 400 - (2P + T ).If T = 15, solve for the new equilibrium price and quantity. (Note: P is the price received by sellers and P + T is the price paid by buyers.) Compare these answers for equilibrium price and quantity with your first answers. What does this show you?ANS:Prior to the tax, the equilibrium price would be $60 and the equilibrium quantity would be 280. After the tax is imposed, P , the price received by sellers would be $57. The price paid by buyers would be $72. The quantity sold would be 271. The new answer shows three obvious facts. First, buyers pay more with a tax. Second, sellers receive less with a tax. Third, the size of the market shrinks when a tax is imposed on a product.DIF: 3 REF: 8-1NAT: AnalyticLOC: Supply and demandTOP: Taxes MSC: AnalyticalChapter 8 /Application: the Costs of Taxation 535 5. Using demand and supply diagrams, show the difference in deadweight loss between (a) a market withinelastic demand and supply and (b) a market with elastic demand and supply.ANS:DIF: 2 REF: 8-2 NAT: Analytic LOC: ElasticityTOP: Deadweight loss | Elasticity MSC: Applicative536 Chapter 8 /Application: the Costs of Taxation6. Illustrate on three demand-and-supply graphs how the size of a tax (small, medium and large) can alter totalrevenue and deadweight loss.ANS:DIF: 2 REF: 8-3 NAT: Analytic LOC: Supply and demandTOP: Deadweight loss MSC: ApplicativeSec00 - Application: The Costs of TaxationMULTIPLE CHOICE1. In 1776, the American Revolution was sparked by anger overa.the extravagant lifestyle of British royalty.b.the crimes of British soldiers stationed in the American colonies.c.British taxes imposed on the American colonies.d.the failure of the British to protect American colonists from attack by hostile Native Americans. ANS: C DIF: 1 REF: 8-0NAT: Analytic LOC: Supply and demand TOP: TaxesMSC: DefinitionalChapter 8 /Application: the Costs of Taxation 5372. Anger over British taxes played a significant role in bringing about thea.election of John Adams as the second American president.b.American Revolution.c.War of 1812.d.“no new taxes” clause in the U.S. Constitution.ANS: B DIF: 1 REF: 8-0NAT: Analytic LOC: Supply and demand TOP: TaxesMSC: Definitional3. Who once said that taxes are the price we pay for a civilized society?a.Aristotleb.George Washingtonc.Oliver Wendell Holmes, Jr.d.Ronald ReaganANS: C DIF: 1 REF: 8-0NAT: Analytic LOC: Supply and demand TOP: TaxesMSC: Definitional4. Who once said that taxes are the price we pay for a civilized society?ton Friedmanb.Theodore Rooseveltc.Arthur Lafferd.Oliver Wendell Holmes, Jr.ANS: D DIF: 1 REF: 8-0NAT: Analytic LOC: Supply and demand TOP: TaxesMSC: Definitional5. To fully understand how taxes affect economic well-being, we musta.assume that economic well-being is not affected if all tax revenue is spent on goods and services forthe people who are being taxed.pare the taxes raised in the United States with those raised in other countries, especially France.pare the reduced welfare of buyers and sellers to the amount of revenue the government raises.d.take into account the fact that almost all taxes reduce the welfare of buyers, increase the welfare ofsellers, and raise revenue for the government.ANS: C DIF: 2 REF: 8-0NAT: Analytic LOC: Supply and demand TOP: Taxes | Economic welfare MSC: Interpretive6. To fully understand how taxes affect economic well-being, we must compare thea.benefit to buyers with the loss to sellers.b.price paid by buyers to the price received by sellers.c.profits earned by firms to the losses incurred by consumers.d.decrease in total surplus to the increase in revenue raised by the government.ANS: D DIF: 2 REF: 8-0NAT: Analytic LOC: Supply and demand TOP: Taxes | Economic welfare MSC: Interpretive7. To fully understand how taxes affect economic well-being, we must compare thea.consumer surplus to the producer surplus.b.price paid by buyers to the price received by sellers.c.reduced welfare of buyers and sellers to the revenue raised by the government.d.consumer surplus to the deadweight loss.ANS: C DIF: 2 REF: 8-0NAT: Analytic LOC: Supply and demand TOP: Taxes | Economic welfare MSC: Interpretive538 Chapter 8 /Application: the Costs of TaxationSec01 - Application: The Costs of Taxation - The Deadweight Loss of Taxation MULTIPLE CHOICE1. When a tax is levied on a good, the buyers and sellers of the good share the burden,a.provided the tax is levied on the sellers.b.provided the tax is levied on the buyers.c.provided a portion of the tax is levied on the buyers, with the remaining portion levied on thesellers.d.regardless of how the tax is levied.ANS: D DIF: 2 REF: 8-1NAT: Analytic LOC: Supply and demand TOP: Tax burdenMSC: Interpretive2. A tax on a gooda.raises the price that buyers effectively pay and raises the price that sellers effectively receive.b.raises the price that buyers effectively pay and lowers the price that sellers effectively receive.c.lowers the price that buyers effectively pay and raises the price that sellers effectively receive.d.lowers the price that buyers effectively pay and lowers the price that sellers effectively receive. ANS: B DIF: 2 REF: 8-1NAT: Analytic LOC: Supply and demand TOP: TaxesMSC: Interpretive3. When a tax is placed on a product, the price paid by buyersa.rises, and the price received by sellers rises.b.rises, and the price received by sellers falls.c.falls, and the price received by sellers rises.d.falls, and the price received by sellers falls.ANS: B DIF: 2 REF: 8-1NAT: Analytic LOC: Supply and demand TOP: TaxesMSC: Interpretive4. A tax affectsa.buyers only.b.sellers only.c.buyers and sellers only.d.buyers, sellers, and the government.ANS: D DIF: 2 REF: 8-1NAT: Analytic LOC: Supply and demand TOP: Tax incidenceMSC: Interpretive5. The government’s benefit from a tax can be measured bya.consumer surplus.b.producer surplus.c.tax revenue.d.All of the above are correct.ANS: C DIF: 2 REF: 8-1NAT: Analytic LOC: Supply and demand TOP: Tax revenueMSC: Interpretive6. What happens to the total surplus in a market when the government imposes a tax?a.Total surplus increases by the amount of the tax.b.Total surplus increases but by less than the amount of the tax.c.Total surplus decreases.d.Total surplus is unaffected by the tax.ANS: C DIF: 2 REF: 8-1NAT: Analytic LOC: Supply and demand TOP: Total surplusMSC: Applicative7. When a good is taxed,a.both buyers and sellers of the good are made worse off.b.only buyers are made worse off, because they ultimately bear the burden of the tax.c.only sellers are made worse off, because they ultimately bear the burden of the tax.d.neither buyers nor sellers are made worse off, since tax revenue is used to provide goods andservices that would otherwise not be provided in a market economy.ANS: A DIF: 2 REF: 8-1NAT: Analytic LOC: Supply and demand TOP: Tax burdenMSC: Interpretive8. To measure the gains and losses from a tax on a good, economists use the tools ofa.macroeconomics.b.welfare economics.c.international-trade theory.d.circular-flow analysis.ANS: B DIF: 1 REF: 8-1NAT: Analytic LOC: Supply and demand TOP: WelfareMSC: Interpretive9. When a tax is imposed on a good, thea.supply curve for the good always shifts.b.demand curve for the good always shifts.c.amount of the good that buyers are willing to buy at each price always remains unchanged.d.equilibrium quantity of the good always decreases.ANS: D DIF: 2 REF: 8-1NAT: Analytic LOC: Supply and demand TOP: TaxesMSC: Interpretive10. A tax levied on the sellers of a good shifts thea.supply curve upward (or to the left).b.supply curve downward (or to the right).c.demand curve upward (or to the right).d.demand curve downward (or to the left).ANS: A DIF: 2 REF: 8-1NAT: Analytic LOC: Supply and demand TOP: TaxesMSC: Interpretive11. A tax levied on the buyers of a good shifts thea.supply curve upward (or to the left).b.supply curve downward (or to the right).c.demand curve downward (or to the left).d.demand curve upward (or to the right).ANS: C DIF: 2 REF: 8-1NAT: Analytic LOC: Supply and demand TOP: TaxesMSC: Interpretive12. If a tax shifts the supply curve upward (or to the left), we can infer that the tax was levied ona.buyers of the good.b.sellers of the good.c.both buyers and sellers of the good.d.We cannot infer anything because the shift described is not consistent with a tax.ANS: B DIF: 2 REF: 8-1NAT: Analytic LOC: Supply and demand TOP: TaxesMSC: Interpretive13. If a tax shifts the supply curve downward (or to the right), we can infer that the tax was levied ona.buyers of the good.b.sellers of the good.c.both buyers and sellers of the good.d.We cannot infer anything because the shift described is not consistent with a tax.ANS: D DIF: 2 REF: 8-1NAT: Analytic LOC: Supply and demand TOP: TaxesMSC: Interpretive14. If a tax shifts the demand curve downward (or to the left), we can infer that the tax was levied ona.buyers of the good.b.sellers of the good.c.both buyers and sellers of the good.d.We cannot infer anything because the shift described is not consistent with a tax.ANS: A DIF: 2 REF: 8-1NAT: Analytic LOC: Supply and demand TOP: TaxesMSC: Interpretive15. If a tax shifts the demand curve upward (or to the right), we can infer that the tax was levied ona.buyers of the good.b.sellers of the good.c.both buyers and sellers of the good.d.We cannot infer anything because the shift described is not consistent with a tax.ANS: D DIF: 2 REF: 8-1NAT: Analytic LOC: Supply and demand TOP: TaxesMSC: Interpretive16. When a tax is imposed on the buyers of a good, the demand curve shiftsa.downward by the amount of the tax.b.upward by the amount of the tax.c.downward by less than the amount of the tax.d.upward by more than the amount of the tax.ANS: A DIF: 2 REF: 8-1NAT: Analytic LOC: Supply and demand TOP: TaxesMSC: Interpretive17. When a tax is imposed on the sellers of a good, thea.demand curve shifts downward by less than the amount of the tax.b.demand curve shifts downward by the amount of the tax.c.supply curve shifts upward by less than the amount of the tax.d.supply curve shifts upward by the amount of the tax.ANS: D DIF: 2 REF: 8-1NAT: Analytic LOC: Supply and demand TOP: TaxesMSC: Interpretive18. A tax placed on buyers of tires shifts thea.demand curve for tires downward, decreasing the price received by sellers of tires and causing thequantity of tires to increase.b.demand curve for tires downward, decreasing the price received by sellers of tires and causing thequantity of tires to decrease.c.supply curve for tires upward, decreasing the effective price paid by buyers of tires and causing thequantity of tires to increase.d.supply curve for tires upward, increasing the effective price paid by buyers of tires and causing thequantity of tires to decrease.ANS: B DIF: 3 REF: 8-1NAT: Analytic LOC: Supply and demand TOP: TaxesMSC: Applicative19. Suppose a tax is imposed on the buyers of fast-food French fries. The burden of the tax willa.fall entirely on the buyers of fast-food French fries.b.fall entirely on the sellers of fast-food French fries.c.be shared equally by the buyers and sellers of fast-food French fries.d.be shared by the buyers and sellers of fast-food French fries but not necessarily equally. ANS: D DIF: 2 REF: 8-1NAT: Analytic LOC: Supply and demand TOP: Tax incidenceMSC: Interpretive20. It does not matter whether a tax is levied on the buyers or the sellers of a good becausea.sellers always bear the full burden of the tax.b.buyers always bear the full burden of the tax.c.buyers and sellers will share the burden of the tax.d.None of the above is correct; the incidence of the tax does depend on whether the buyers or thesellers are required to pay the tax.ANS: C DIF: 2 REF: 8-1NAT: Analytic LOC: Supply and demand TOP: Tax incidenceMSC: Interpretive21. When alcohol is taxed and sellers of alcohol are required to pay the tax to the government,a.the quantity of alcohol bought and sold in the market is reduced.b.the price paid by buyers of alcohol decreases.c.the demand for alcohol decreases.d.there is a movement downward and to the right along the demand curve for alcohol.ANS: A DIF: 2 REF: 8-1NAT: Analytic LOC: Supply and demand TOP: Tax incidenceMSC: Interpretive22. One result of a tax, regardless of whether the tax is placed on the buyers or the sellers, is that thea.size of the market is unchanged.b.price the seller effectively receives is higher.c.supply curve for the good shifts upward by the amount of the tax.d.tax reduces the welfare of both buyers and sellers.ANS: D DIF: 2 REF: 8-1NAT: Analytic LOC: Supply and demand TOP: Taxes | Welfare MSC: Interpretive23. When a tax is placed on the buyers of a product, a result is that buyers effectively paya.less than before the tax, and sellers effectively receive less than before the tax.b.less than before the tax, and sellers effectively receive more than before the tax.c.more than before the tax, and sellers effectively receive less than before the tax.d.more than before the tax, and sellers effectively receive more than before the tax.ANS: C DIF: 2 REF: 8-1NAT: Analytic LOC: Supply and demand TOP: TaxesMSC: Interpretive24. When a tax is levied on a good,a.neither buyers nor sellers are made worse off.b.only sellers are made worse off.c.only buyers are made worse off.d.both buyers and sellers are made worse off.ANS: D DIF: 2 REF: 8-1NAT: Analytic LOC: Supply and demand TOP: Taxes | Welfare MSC: Interpretive25. When a tax is levied on the buyers of a good, thea.supply curve shifts upward by the amount of the tax.b.quantity supplied increases for all conceivable prices of the good.c.buyers of the good will send tax payments to the government.d.demand curve shifts to the right by the horizontal distance of the tax.ANS: C DIF: 2 REF: 8-1NAT: Analytic LOC: Supply and demand TOP: TaxesMSC: Definitional26. When a tax is levied on the sellers of a good, thea.supply curve shifts upward by the amount of the tax.b.quantity demanded decreases for all conceivable prices of the good.c.quantity supplied increases for all conceivable prices of the good.d.None of the above is correct.ANS: A DIF: 2 REF: 8-1NAT: Analytic LOC: Supply and demand TOP: TaxesMSC: Interpretive27. A $2.00 tax per gallon of paint placed on the sellers of paint will shift the supply curvea.downward by exactly $2.00.b.downward by less than $2.00.c.upward by exactly $2.00.d.upward by less than $2.00.ANS: C DIF: 2 REF: 8-1NAT: Analytic LOC: Supply and demand TOP: Tax incidenceMSC: Interpretive28. When a tax on a good is enacted,a.buyers and sellers share the burden of the tax regardless of whether the tax is levied on buyers or onsellers.b.buyers always bear the full burden of the tax.c.sellers always bear the full burden of the tax.d.sellers bear the full burden of the tax if the tax is levied on them; buyers bear the full burden of thetax if the tax is levied on them.ANS: A DIF: 2 REF: 8-1NAT: Analytic LOC: Supply and demand TOP: Tax incidenceMSC: Interpretive29. A tax placed on a gooda.causes the effective price to sellers to increase.b.affects the welfare of buyers of the good but not the welfare of sellers.c.causes the equilibrium quantity of the good to decrease.d.creates a burden that is usually borne entirely by the sellers of the good.ANS: C DIF: 2 REF: 8-1NAT: Analytic LOC: Supply and demand TOP: Tax incidenceMSC: Interpretive30. When a tax is levied on buyers of a good,ernment collects too little revenue to justify the tax if the equilibrium quantity of the gooddecreases as a result of the tax.b.there is an increase in the quantity of the good supplied.c. a wedge is placed between the price buyers pay and the price sellers effectively receive.d.the effective price to buyers decreases because the demand curve shifts leftward.ANS: C DIF: 2 REF: 8-1NAT: Analytic LOC: Supply and demand TOP: TaxesMSC: Applicative。
国际经济学模拟试题(英文)含答案讲课讲稿
国际经济学模拟习题（3）一、True or False （10*1’=10’）1. Trade is a zero-sum activity; if one country gains, theother must lose.2. A nation maximizes satisfaction by reaching the highestpossible indifference curve, and in the absence of trade will produce where its production possibilitiesschedule is tangent to an indifference curve.3. The factor endowments model predicts thatinternational trade will tend to equalize the prices oftrade-able goods among nations, but to increase thewage gap between capital-abundant and labor-abundant nations.4. A tax of 10 percent on imports of shoes would be anexample of a specific tariff.5. An import quota will not raise the domestic price ofthe product as would a tariff, because it is not a tax onimports.6. In balance-of-payments account, a transaction resultingin receipt of a payment is recorded as a credit,whereas a transaction resulting in a payment to othernations is recorded as a debit.7. Because they do not include an exchange of goods orservices, unilateral transfers do not appear on anation's balance of payments account.8. David Hume was one of the first economists to provideanalytical support for mercantilist trade policies.9. A nation would be most likely to find its trade balanceimproving after a currency depreciation if that nation’sdemand for imports and foreign demand for its exportswas very inelastic.10. A nation with neither a balance of payments surplus nora balance of payments deficit is said to be in internalbalance.二、choices（15*3’=45’）1. The law of comparative advantagea). was ratified by the World Trade Organizationb). explains how all countries can benefit when each specializes in producing items in which it has the greatest relative efficiencyc). explains how only the most efficient nations can benefit from traded). is used to evaluate a country’s military strength2. The theory of absolute advantage was developed bya. the Mercantilistsb. David Humec. Adam Smithd. David Ricardo3. David Ricardo developed the principle of comparative advantage showing thata. a nation must be the least-cost producer of a good in order to export that itemb. no nation could have an absolute advantage in all goodsc. in a two-country example, only one nation can have a comparative advantaged. even a nation that has lower productivity in all goods can benefit by exporting the item in which it is relatively less inefficient4. An indifference curvea. shows that most people really are indifferent about international tradeb. shows the demand preferences of consumersc. reflects the relative costs of production within a nationd. indicates how much labor a country has5. To maximize its satisfaction, a nation will ensure that its terms-of-trade linea. is tangent to its production possibilities frontier at one point (production point) and also to the highest attainable indifference curve at another point (consumption point)b. is tangent to its production possibilities frontier and intersects an indifference curvec. intersects its production possibilities frontier and is tangent to an indifference curved. intersects its production possibilities frontier at one point and an indifference curve at another point6. Factor-price equalization predicts that with international tradea. the price of a nation’s abundant factor will rise and that of its scarce factor will fallb. the price of a nation’s abundant factor will fall and that of its scarce factor will risec. the prices of a nation’s abundant and scarce factors both will rised. the prices of a nation’s abundant and scarce factors both will fall7. The effective rate of protectiona. distinguishes between tariffs that are effective and those that are ineffectiveb. is the minimum level at which a tariff becomes effectiv e in limiting importsc. shows the increase in value-added for domestic production that a particular tariff structure makes possible, in percentage termsd. shows how effective a tariff is in raising revenue8. The institutional framework developed in 1947 to promote trade liberalization is known asa. the GATTb. the WTOc. the IMFd. The World Bank9. Developing nationsa. have very limited involvement in international tradeb. trade mostly with each otherc. rely heavily on exports of primary products to industrial nationsd. rely heavily on exports of manufactured products10. A customs union is unique in that ita. has no tariffs on trade among member nationsb. has no tariffs on trade among member nations and a common set of tariffs on imports from non-membersc. has no tariffs on trade among member nations, a common set of tariffs on imports from non-members, and free mobility of factors of production such as labor and capital among membersd. allows unrestricted labor immigration from no n-member nations11. A nation's balance of payments statementa. is a record of that nation's assets abroad and its liabilities to those from other nationsb. is an accounting adjustment process ensuring that a nation's exports will be equal to its importsc. does not include transactions of foreign citizens or companies living or operating within that nationd. is a record of the economic transactions between residents of that nation and the rest of the world, usually for a period of one year.12. Since balance-of-payments accounting is a double-entryaccounting system, an export of U.S. wheat to Mexico paid for by a deposit to the U.S. exporters account in a Mexican bank would be recorded on the U.S. balance of payments as a. a credit for merchandise exports and a credit to short-term financial flowsb. a credit for merchandise exports and a debit to short-termfinancial flows.c. a credit for merchandise exports and a debit to unilateral transfersd. a credit for merchandise exports and a debit to official settlements13. The foreign-exchange marketa. is located in New Yorkb. is a market in Chicago for the international trading of commodities such as wheat or copper.c. is a mechanism for individuals and institutions to exchange one national or regional currency or debt instrument for those of other nations or regions.d. is open from 9:00 a.m. to 3:00 p.m. New York time, Monday through Friday.14. Market fundamentals that might be expected to influenceexchange rate movements include all of the following factors excepta. differences in real income growth rates between countriesb. differences in real interest rates between countriesc. speculative opinion about future exchange ratesd. changes in perceived profitability of economic investments between two countries15. If inflation is higher in Mexico than in the United States, the law of one price would predict thata. trade between Mexico and the United States would declineb. the dollar price of autos purchased in Mexico would behigher than the dollar price of comparable autos purchased in the United Statesc. the peso would appreciate relative to the dollar by anamount equal in percentage terms to the difference between the two inflation ratesd. the peso would depreciate relative to the dollar by anamount equal in percentage terms to the difference between the two inflation rates三、Questions（45’, answer these questions in Chinese）1. Assume that labor is the only factor used in production, and that the costs of producing butter and cloth are given by the table below.(8’)(1) Express the price of butter relative to the price of cloth in terms of labor content for Home and Foreign in t he absence of trade.(2) What do these relative prices reveal about each country’s comparative advantage?(3) What do these relative prices suggest about the world price of butter relative to cloth that will exist once these countries trade with each other?(4) If the world price stabilizes at 1 with trade, what are the gains by the Home country achieved through trade with the Foreign country?2. Explain the immiserizing growth and list the case for immiserizing growth to be occur. (8’)3. Explain the exch ange rate overshooting theory (8’)4. Suppose that the nominal interest rate on 3-month Treasurybills is 8 percent in the United States and 6 percent in the United Kingdom, and the rate of inflation is 10 percent in the United States and 4 percent in the United Kingdom.(9’)(1) What is the real interest rate in each nation?(2) In which direction would international investment flow in response to these real interest rates?(3) What impact would these investment flows have on the dollar’s exchange value?5. What effects does labor migration have on the country ofimmigration? The country of emigration? The world as a whole?(12’)国际经济学模拟习题（3）参考答案一、判断题（每题1分，共10分）╳√ ╳╳╳√ ╳╳╳╳二、选择题（每题3分，共45分）bcdba acacb dbccd三、简答题（共45分）1、(1) 封闭条件下，本国可以用一半的生产一单位布的劳动时间生产一单位黄油。
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Chapter 21The Theory of Consumer ChoiceTRUE/FALSE1. The theory of consumer choice illustrates that people face tradeoffs, which is one of the Ten Principles ofEconomics.ANS: T DIF: 1 REF: 21-0 NAT: AnalyticLOC: Utility and consumer choice TOP: Consumer choiceMSC: Definitional2. A consumer’s budget constraint for goods X and Y is determined by how much the consumer likes good Xrelative to good Y.ANS: F DIF: 2 REF: 21-1 NAT: AnalyticLOC: Utility and consumer choice TOP: Budget constraintMSC: Definitional3. The slope of the budget constraint reveals the relative price of good X compared to good Y.ANS: T DIF: 2 REF: 21-1 NAT: AnalyticLOC: Utility and consumer choice TOP: Budget constraintMSC: Applicative4. A budget constraint illustrates bundles that a consumer prefers equally, while an indifference curve illustratesbundles that are equally affordable to a consumer.ANS: F DIF: 2 REF: 21-1 | 21-2 NAT: AnalyticLOC: Utility and consumer choice TOP: Budget constraintMSC: Applicative5. For a typical consumer, most indifference curves are bowed inward.ANS: T DIF: 1 REF: 21-2 NAT: AnalyticLOC: Utility and consumer choice TOP: Indifference curvesMSC: Interpretive6. For a typical consumer, most indifference curves are downward sloping.ANS: T DIF: 1 REF: 21-2 NAT: AnalyticLOC: Utility and consumer choice TOP: Indifference curvesMSC: Interpretive7. For a typical consumer, indifference curves can intersect if they satisfy the property of transitivity.ANS: F DIF: 2 REF: 21-2 NAT: AnalyticLOC: Utility and consumer choice TOP: Indifference curvesMSC: Interpretive8. When two goods are perfect complements, the indifference curves are right angles.ANS: T DIF: 1 REF: 21-2 NAT: AnalyticLOC: Utility and consumer choice TOP: Perfect complementsMSC: Interpretive9. The indifference curves for left shoes and right shoes are right angles.ANS: T DIF: 1 REF: 21-2 NAT: AnalyticLOC: Utility and consumer choice TOP: Perfect complementsMSC: Applicative10. The indifference curves for perfect substitutes are straight lines.ANS: T DIF: 1 REF: 21-2 NAT: AnalyticLOC: Utility and consumer choice TOP: Perfect substitutesMSC: Applicative1406Chapter 21/The Theory of Consumer Choice 1407 11. The indifference curves for nickels and dimes are straight lines.ANS: T DIF: 1 REF: 21-2 NAT: AnalyticLOC: Utility and consumer choice TOP: Perfect substitutesMSC: Applicative12. When two goods are perfect substitutes, the indifference curves are right angles.ANS: F DIF: 1 REF: 21-2 NAT: AnalyticLOC: Utility and consumer choice TOP: Perfect complements | Perfect substitutesMSC: Interpretive13. If goods A and B are perfect substitutes, then the marginal rate of substitution of good A for good B isconstant.ANS: T DIF: 2 REF: 21-2 NAT: AnalyticLOC: Utility and consumer choice TOP: Marginal rate of substitution | Perfect substitutesMSC: Interpretive14. The slope at any point on an indifference curve equals the absolute price at which a consumer is willing tosubstitute one good for the other.ANS: F DIF: 2 REF: 21-2 NAT: AnalyticLOC: Utility and consumer choice TOP: Marginal rate of substitutionMSC: Interpretive15. The marginal rate of substitution between goods A and B measures the price of A relative to the price of B. ANS: F DIF: 2 REF: 21-2 NAT: AnalyticLOC: Utility and consumer choice TOP: Marginal rate of substitutionMSC: Definitional16. The marginal rate of substitution is the slope of the budget constraint.ANS: F DIF: 1 REF: 21-2 NAT: AnalyticLOC: Utility and consumer choice TOP: Marginal rate of substitutionMSC: Definitional17. The marginal rate of substitution is the slope of the indifference curve.ANS: T DIF: 1 REF: 21-2 NAT: AnalyticLOC: Utility and consumer choice TOP: Marginal rate of substitutionMSC: Definitional18. At a consumer’s optimal choice, the consumer chooses the combinati on of goods that equates the marginalrate of substitution and the price ratio.ANS: T DIF: 2 REF: 21-3 NAT: AnalyticLOC: Utility and consumer choice TOP: OptimizationMSC: Interpretive19. At a consumer’s optimal choice, the consumer chooses the combin ation of goods such that the ratio of themarginal utilities equals the ratio of the prices.ANS: T DIF: 2 REF: 21-3 NAT: AnalyticLOC: Utility and consumer choice TOP: OptimizationMSC: Interpretive20. If consumers purchase more of a good when their income rises, the good is a normal good.ANS: T DIF: 1 REF: 21-3 NAT: AnalyticLOC: Utility and consumer choice TOP: Normal goods | Inferior goodsMSC: Definitional21. If a consumer purchases more of good B when his income rises, good B is an inferior good.ANS: F DIF: 1 REF: 21-3 NAT: AnalyticLOC: Utility and consumer choice TOP: Normal goods | Inferior goodsMSC: Definitional22. If a consumer purchases more of good A when her income falls, good A is an inferior good.ANS: T DIF: 2 REF: 21-3 NAT: AnalyticLOC: Utility and consumer choice TOP: Inferior goodsMSC: Definitional23. The income effect of a price change is unaffected by whether the good is a normal or inferior good.ANS: F DIF: 2 REF: 21-3 NAT: AnalyticLOC: Utility and consumer choice TOP: Income effectMSC: Interpretive24. The income effect of a price change is the change in consumption that results from the movement to a newindifference curve.ANS: T DIF: 2 REF: 21-3 NAT: AnalyticLOC: Utility and consumer choice TOP: Income effectMSC: Interpretive25. The direction of the substitution effect is not influenced by whether the good is normal or inferior.ANS: T DIF: 3 REF: 21-3 NAT: AnalyticLOC: Utility and consumer choice KEY: Substitution effectMSC: Analytical26. The substitution effect of a price change is the change in consumption that results from the movement to a newindifference curve.ANS: F DIF: 2 REF: 21-3 NAT: AnalyticLOC: Utility and consumer choice TOP: Substitution effectMSC: Interpretive27. All points on a demand curve are optimal consumption points.ANS: T DIF: 3 REF: 21-3 NAT: AnalyticLOC: Utility and consumer choice TOP: Demand MSC: Analytical28. Economists use the term Giffen good to describe a good that violates the law of demand.ANS: T DIF: 2 REF: 21-4 NAT: AnalyticLOC: Utility and consumer choice TOP: Giffen good MSC: Interpretive29. Giffen goods are inferior goods for which the income effect dominates the substitution effect.ANS: T DIF: 2 REF: 21-4 NAT: AnalyticLOC: Utility and consumer choice TOP: Giffen good MSC: Definitional30. Economists have found evidence of a Giffen good when studying the consumption of rice in the Chineseprovince of Hunan.ANS: T DIF: 2 REF: 21-4 NAT: AnalyticLOC: Utility and consumer choice TOP: Giffen good MSC: Applicative31. Katie wins $1 million in her state’s lottery. If Katie drastically reduces the number of hours she works aftershe wins the money, we can infer that the income effect is larger than the substitution effect for her.ANS: T DIF: 2 REF: 21-4 NAT: AnalyticLOC: Utility and consumer choice TOP: Labor supplyMSC: Interpretive32. Susie wins $1 million in her state’s lottery. If Susie keeps working after she wins the money, we can inferthat the income effect is larger than the substitution effect for her.ANS: F DIF: 2 REF: 21-4 NAT: AnalyticLOC: Utility and consumer choice TOP: Labor supplyMSC: Interpretive33. A rational person can have a negatively-sloped labor supply curve.ANS: T DIF: 2 REF: 21-4 NAT: AnalyticLOC: Utility and consumer choice TOP: Labor supplyMSC: ApplicativeChapter 21/The Theory of Consumer Choice 1409 34. The substitution effect in the work-leisure model induces a person to work less in response to higher wages,which tends to make the labor-supply curve slope upward.ANS: F DIF: 2 REF: 21-4 NAT: AnalyticLOC: Utility and consumer choice TOP: Labor supplyMSC: Interpretive35. The income effect in the work-leisure model induces a person to work less in response to higher wages, whichtends to make the labor-supply curve slope backward.ANS: T DIF: 2 REF: 21-4 NAT: AnalyticLOC: Utility and consumer choice TOP: Labor supplyMSC: Interpretive36. Some economists have advocated reducing the taxation of interest and other capital income, arguing that sucha policy change would raise the after-tax interest rate that savers can earn and would thereby encourage peopleto save more.ANS: T DIF: 2 REF: 21-4 NAT: AnalyticLOC: Utility and consumer choice TOP: Consumption-saving decisionMSC: Interpretive37. A rise in the interest rate will generally result in people consuming more when they are old if the substitutioneffect outweighs the income effect.ANS: T DIF: 2 REF: 21-4 NAT: AnalyticLOC: Utility and consumer choice TOP: Consumption-saving decisionMSC: Interpretive38. A rise in the interest rate will generally result in people consuming less when they are old if the substitutioneffect outweighs the income effect.ANS: F DIF: 2 REF: 21-4 NAT: AnalyticLOC: Utility and consumer choice TOP: Consumption-saving decisionMSC: InterpretiveSHORT ANSWER1. Answer the following questions based on the table. A consumer is able to consume the following bundles ofrice and beans when the price of rice is $2 and the price of beans is $3.RICE BEANS1206408a.How much is this consumer's income?b.Draw a budget constraint given this information. Label it B.c.Construct a new budget constraint showing the change if the price of rice falls $1. Label this C.d.Given the original prices for rice ($2) and beans ($3), construct a new budget constraint if thisconsumer's income increased to $48. Label this D.ANS:a.$24b.c.d.DIF: 2 REF: 21-1 NAT: Analytic LOC: Utility and consumer choice TOP: Budget constraint MSC: ApplicativeChapter 21/The Theory of Consumer Choice 1411 2. Draw a budget constraint that is consistent with the following prices and income.Income = 200P Y = 50P X = 25a.Demonstrate how your original budget constraint would change if income increases to 500.b.Demonstrate how your original budget constraint would change if P Y decreases to 20.c.Demonstrate how your original budget constraint would change if P X increases to 40.ANS:DIF: 2 REF: 21-1 NAT: Analytic LOC: Utility and consumer choice TOP: Budget constraint MSC: Applicative3. Assume that a consumer faces the following budget constraints.a.Assuming that income is the same on both occasions, describe the difference in relative pricesbetween Panel A and Panel B.b.If income in Panel B is $126, what is the price of good X?c.If income in Panel A is $84, what is the price of good Y?d.Assuming that the price of good X is the same on both occasions, describe the difference inincome and price of good Y between Panel A and Panel B.ANS:a.The price of good Y is relatively higher in Panel A than Panel B. Said another way, the price ofX is relatively lower in Panel A than Panel B.b.$9c.$12d.Income in Panel A is twice the income in Panel B, and the price of "Y" in Panel B is 1/18 theprice of "Y" in Panel A.DIF: 2 REF: 21-1 NAT: Analytic LOC: Utility and consumer choice TOP: Budget constraint MSC: Applicative4. Evaluate the following statement, "Warren Buffet is the second richest person in the world. He doesn't faceany constraint on his ability to purchase commodities he wants."ANS:Everyone faces scarcity of resources, regardless of how rich they are because wants are assumed to be infinite. DIF: 1 REF: 21-1 NAT: Analytic LOC: Utility and consumer choice TOP: Budget constraint MSC: Interpretive5. List and briefly explain each of the four properties of indifference curves.ANS:1: Higher indifference curves are preferred to lower ones, because consumers usually prefer more of something to less of it. 2: Indifference curves are downward sloping. The slope of an indifference curve reflects the rate at which the consumer is willing to substitute one good for another. If the quantity of one good is reduced, the quantity of the other good must increase in order for the consumer to be equally happy. 3: Indifference curves do not cross. If indifference curves did cross, the same point could be on two different curves, thus contradicting the assumption that consumers prefer more of both goods to less. 4: Indifference curves are bowed inward. This is because people are more willing to trade away goods that they have in abundance and less willing to trade away goods of which they have less.DIF: 1 REF: 21-2 NAT: Analytic LOC: Utility and consumer choice TOP: Indifference curves MSC: InterpretiveChapter 21/The Theory of Consumer Choice 14136. Draw indifference curves that reflect the following preferences.a.pencils with white erasers and pencils with pink erasersb.left shoes and right shoesc.potatoes and riced.income and polluted waterANS:DIF: 2 REF: 21-2 NAT: Analytic LOC: Utility and consumer choice TOP: Indifference curves MSC: Applicative7. Graphically demonstrate the conditions associated with a consumer optimum. Carefully label all curves andaxes.ANS:Where M=IncomeDIF: 1 REF: 21-3 NAT: Analytic LOC: Utility and consumer choice TOP: Optimization MSC: Applicative8. Explain the relationship between the budget const raint and indifference curve at a consumer’s optimum. ANS:Since the budget constraint is tangent to the indifference curve at a consumer’s optimum, the slope of the budget constraint (relative market prices) and the slope of the indifference curve (the marginal rate of substitution) are equal at the optimal consumption point.DIF: 1 REF: 21-3 NAT: Analytic LOC: Utility and consumer choice TOP: Consumer choice MSC: InterpretiveChapter 21/The Theory of Consumer Choice 1415 9. Assume that a person consumes two goods, Coke and Snickers. Use a graph to demonstrate how the consumeradjusts his/her optimal consumption bundle when the price of Coke decreases. Carefully label all curves and axes. What will happen to consumption if Coke is a normal good? What will happen to consumption if Coke is an inferior good? (Remember to explain the possible change when the income effect dominates and when the substitution effect dominates.)ANS:If Coke is a normal good, the consumption of Coke will increase when the price decreases. If Coke is an inferior good and the substitution effect dominates, the consumption of Coke will increase when the price decreases. If Coke is an inferior good and the income effect dominates, the consumption of Coke will decrease when the price decreases. If consumption decreases, the demand curve is upward sloping, and Coke would be a Giffen good. Giffen goods are very rare in the real world, and Coke is not likely to be one.DIF: 2 REF: 21-3 NAT: Analytic LOC: Utility and consumer choice TOP: Consumer choice MSC: Applicative10. Using the graph shown, construct a demand curve for M&M's given an income of $10.ANS:DIF: 3 REF: 21-3 NAT: Analytic LOC: Utility and consumer choice TOP: Demand MSC: AnalyticalChapter 21/The Theory of Consumer Choice 1417 11. Using indifference curves and budget constraints, graphically illustrate the substitution and income effect thatwould result from a change in the price of a normal good.ANS:The graph above illustrates a price decrease for potato chips. Moving from point A to point B illustrates the substitution effect, while moving from point B to point C illustrates the income effect.DIF: 3 REF: 21-3 NAT: Analytic LOC: Utility and consumer choice TOP: Income effect | Substitution effect MSC: Applicative12. Explain the difference between inferior and normal goods. As a developing economy experiences increases inincome (measured by GDP), what would you predict to happen to demand for inferior goods?ANS:Normal goods are those for which consumption increases as income rises. Inferior goods are those for which consumption decreases as income rises. We would expect the demand for inferior goods to decrease as developing countries experience increases in income.DIF: 2 REF: 21-3 NAT: Analytic LOC: Utility and consumer choice TOP: Inferior goods | Normal goods MSC: Interpretive13. Janet knows that she will ultimately face retirement. Assume that Janet will experience two periods in her life,one in which she works and earns income, and one in which she is retired and earns no income. Janet can earn$250,000 during her working period and nothing in her retirement period. She must both save and consume inher work period and can earn 10 percent interest on her savings.e a graph to demonstrate Janet's budget constraint.b.On your graph, show Janet at an optimal level of consumption in the work period equal to$150,000. What is the implied optimal level of consumption in her retirement period?c.Now, using your graph from part b above, demonstrate how Janet will be affected by an increasein the interest rate on savings to 14 percent. Discuss the role of income and substitution effects indetermining whether Janet will increase, or decrease her savings in the work period.ANS:a.see graph belowb.see graph belowc.see graph belowSubstitution effect: Retirement spending becomes less costly, so she should increase saving.Income effect: As income increases she should increase consumption in both periods (thus reducing her saving in the work period.)DIF: 3 REF: 21-4 NAT: Analytic LOC: Utility and consumer choiceTOP: Consumption-saving decision MSC: ApplicativeSec 00 - The Theory of Consumer ChoiceMULTIPLE CHOICE1. Which of the following does not represent a tradeoff facing a consumer?a.choosing to purchase more of all goodsb.choosing to spend more leisure time and less working timec.choosing to spend more now and consume less in the futured.choosing to purchase less of one good in order to purchase more of another goodANS: A DIF: 1 REF: 21-0 NAT: AnalyticLOC: Utility and consumer choice TOP: Consumer choiceMSC: ApplicativeChapter 21/The Theory of Consumer Choice 1419 2. How are the following three questions related: 1) Do all demand curves slope downward? 2) How dowages affect labor supply? 3) How do interest rates affect household saving?a.They all relate to macroeconomics.b.They all relate to monetary economics.c.They all relate to the theory of consumer choice.d.They are not related to each other in any way.ANS: C DIF: 1 REF: 21-0 NAT: AnalyticLOC: Utility and consumer choice TOP: Consumer choiceMSC: Applicative3. Just as the theory of the competitive firm provides a more complete understanding of supply, the theory ofconsumer choice provides a more complete understanding ofa.demand.b.profits.c.production possibility frontiers.d.wages.ANS: A DIF: 1 REF: 21-0 NAT: AnalyticLOC: Utility and consumer choice TOP: Consumer choiceMSC: Interpretive4. Which of the following statements is correct?a.The theory of consumer choice provides a more complete understanding of supply, just as thetheory of the competitive firm provides a more complete understanding of demand.b.The theory of consumer choice provides a more complete understanding of demand, just as thetheory of the competitive firm provides a more complete understanding of supply.c.Monetary theory provides a more complete understanding of demand, just as the theory of thecompetitive firm provides a more complete understanding of supply.d.The theory of public choice provides a more complete understanding of supply, just as the theory ofthe competitive firm provides a more complete understanding of demand.ANS: B DIF: 1 REF: 21-0 NAT: AnalyticLOC: Utility and consumer choice TOP: Consumer choiceMSC: Interpretive5. When a consumer spends less time enjoying leisure and more time working, she hasa.lower income and therefore cannot afford more consumption.b.lower income and therefore can afford more consumption.c.higher income and therefore cannot afford more consumption.d.higher income and therefore can afford more consumption.ANS: D DIF: 1 REF: 21-0 NAT: AnalyticLOC: Utility and consumer choice TOP: Consumer choiceMSC: Interpretive6. The theory of consumer choice provides the foundation for understanding thea.structure of a firm.b.profitability of a firm.c.demand for a firm's product.d.supply of a firm's product.ANS: C DIF: 1 REF: 21-0 NAT: AnalyticLOC: Utility and consumer choice TOP: Consumer choiceMSC: Definitional7. The theory of consumer choice examinesa.the determination of output in competitive markets.b.the tradeoffs inherent in decisions made by consumers.c.how consumers select inputs into manufacturing production processes.d.the determination of prices in competitive markets.ANS: B DIF: 1 REF: 21-0 NAT: AnalyticLOC: Utility and consumer choice TOP: Consumer choiceMSC: Definitional8. The theory of consumer choice most closely examines which of the following Ten Principles of Economics?a.People face trade-offs.b.The cost of something is what you give up to get it.c.Trade can make everyone better off.d.Markets are usually a good way to organize economic activity.ANS: A DIF: 1 REF: 21-0 NAT: AnalyticLOC: Utility and consumer choice TOP: Consumer choiceMSC: InterpretiveSec 01- The Theory of Consumer Choice - The Budget Constraint: What the Consumer Can AffordMULTIPLE CHOICE1. Karen, Tara, and Chelsea each buy ice cream and paperback novels to enjoy on hot summer days. Ice creamcosts $5 per gallon, and paperback novels cost $8 each. Karen has a budget of $80, Tara has a budget of $60,and Chelsea has a budget of $40 to spend on ice cream and paperback novels. Who can afford to purchase 8gallons of ice cream and 5 paperback novels?a.Karen, Tara, and Chelseab.Karen onlyc.Tara and Chelsea but not Karend.none of the womenANS: B DIF: 1 REF: 21-1 NAT: AnalyticLOC: Utility and consumer choice TOP: Budget constraintMSC: Applicative2. Karen, Tara, and Chelsea each buy ice cream and paperback novels to enjoy on hot summer days. Ice creamcosts $5 per gallon, and paperback novels cost $8 each. Karen has a budget of $80, Tara has a budget of $60,and Chelsea has a budget of $40 to spend on ice cream and paperback novels. Who can afford to purchase 5gallons of ice cream and 8 paperback novels?a.Karen, Tara, and Chelseab.Karen onlyc.Tara and Chelsea but not Karend.none of the womenANS: D DIF: 1 REF: 21-1 NAT: AnalyticLOC: Utility and consumer choice TOP: Budget constraintMSC: Applicative3. Karen, Tara, and Chelsea each buy ice cream and paperback novels to enjoy on hot summer days. Ice creamcosts $5 per gallon, and paperback novels cost $8 each. Karen has a budget of $80, Tara has a budget of $60,and Chelsea has a budget of $40 to spend on ice cream and paperback novels. Who can afford to purchase 4gallons of ice cream and 5 paperback novels?a.Karen, Tara, and Chelseab.Karen onlyc.Karen and Tara but not Chelsead.none of the womenANS: C DIF: 1 REF: 21-1 NAT: AnalyticLOC: Utility and consumer choice TOP: Budget constraintMSC: ApplicativeChapter 21/The Theory of Consumer Choice 1421 4. Karen, Tara, and Chelsea each buy ice cream and paperback novels to enjoy on hot summer days. Ice creamcosts $5 per gallon, and paperback novels cost $8 each. Karen has a budget of $80, Tara has a budget of $60, and Chelsea has a budget of $40 to spend on ice cream and paperback novels. Which of the followingstatements is correct?a.Each woman faces the same budget constraint.b.The slope of the budget constraint is the same for each woman.c.The area underneath the budget constraint is larger for Chelsea than for Karen.d.All of the above are correct.ANS: B DIF: 2 REF: 21-1 NAT: AnalyticLOC: Utility and consumer choice TOP: Budget constraintMSC: Applicative5. Suppose a consumer has an income of $800 per month and that she spends her entire income each month onbeer and bratwurst. The price of a pint of beer is $5, and the price of a bratwurst is $4. Which of thefollowing combinations of beers and bratwursts represents a point that would lie to the interior of theconsumer’s budget constraint?a.160 beers and 200 bratwurstsb.40 beers and 50 bratwurstsc.80 beers and 100 bratwurstsd.160 beers and 0 bratwurstsANS: B DIF: 2 REF: 21-1 NAT: AnalyticLOC: Utility and consumer choice TOP: Budget constraintMSC: Analytical6. Suppose a consumer has an income of $800 per month and that she spends her entire income each month onbeer and bratwurst. The price of a pint of beer is $5, and the price of a bratwurst is $4. Which of thefollowing combinations of beers and bratwursts represents a point that would lie to the exterior of theconsumer’s budget constraint?a.160 beers and 200 bratwurstsb.40 beers and 50 bratwurstsc.80 beers and 100 bratwurstsd.160 beers and 0 bratwurstsANS: A DIF: 2 REF: 21-1 NAT: AnalyticLOC: Utility and consumer choice TOP: Budget constraintMSC: Analytical7. Suppose a consumer has an income of $800 per month and that she spends her entire income each month onbeer and bratwurst. The price of a pint of beer is $5, and the price of a bratwurst is $4. Which of thefollowing combinations of beers and bratwursts represents a point that would lie directly on the consumer’s budget constraint?a.160 beers and 200 bratwurstsb.40 beers and 50 bratwurstsc.80 beers and 100 bratwurstsd.80 beers and 0 bratwurstsANS: C DIF: 2 REF: 21-1 NAT: AnalyticLOC: Utility and consumer choice TOP: Budget constraintMSC: Analytical8. Consider two goods, books and hamburgers. The slope of the consumer's budget constraint is measured by thea.consumer's income divided by the price of hamburgers.b.relative price of books and hamburgers.c.consumer's marginal rate of substitution.d.number of books purchased divided by the number of hamburgers purchased.ANS: B DIF: 2 REF: 21-1 NAT: AnalyticLOC: Utility and consumer choice TOP: Budget constraintMSC: Interpretive9. Suppose a consumer spends his income on CDs and DVDs. If his income decreases, the budget constraintfor CDs and DVDs willa.shift outward, parallel to the original budget constraint.b.shift inward, parallel to the original budget constraint.c.rotate outward along the CD axis because he can afford more CDs.d.rotate outward along the DVD axis because he can afford more DVDs.ANS: B DIF: 2 REF: 21-1 NAT: AnalyticLOC: Utility and consumer choice TOP: Budget constraintMSC: Analytical10. When the price of a shirt falls, thea.quantity of shirts demanded falls.b.quantity of shirts demanded rises.c.quantity of shirts supplied rises.d.demand for shirts falls.ANS: B DIF: 1 REF: 21-1 NAT: AnalyticLOC: Utility and consumer choice TOP: Demand MSC: Analytical11. A budget constraint illustrates thea.prices that a consumer chooses to pay for products he consumes.b.purchases made by consumers.c.consumption bundles that a consumer can afford.d.consumption bundles that give a consumer equal satisfaction.ANS: C DIF: 1 REF: 21-1 NAT: AnalyticLOC: Utility and consumer choice TOP: Budget constraintMSC: Definitional12. Assume that a college student spends her income on books and pizza. The price of a pizza is $8, and the priceof a book is $15. If she has $100 of income, she could choose to consumea.8 pizzas and 4 books.b. 4 pizzas and 5 books.c.9 pizzas and 3 books.d. 4 pizzas and 3 books.ANS: D DIF: 2 REF: 21-1 NAT: AnalyticLOC: Utility and consumer choice TOP: Budget constraintMSC: Applicative13. Assume that a college student spends her income on mac-n-cheese and CDs. The price of one box ofmac-n-cheese is $1, and the price of one CD is $12. If she has $100 of income, she could choose to consumea.15 boxes of mac-n-cheese and 6 CDs.b.20 boxes of mac-n-cheese and 7 CDs.c.10 boxes of mac-n-cheese and 8 CDs.d.30 boxes of mac-n-cheese and 6 CDs.ANS: A DIF: 2 REF: 21-1 NAT: AnalyticLOC: Utility and consumer choice TOP: Budget constraintMSC: Applicative14. A consumer who doesn't spend all of her incomea.would be at a point outside of her budget constraint.b.would be at a point inside her budget constraint.c.must not be consuming positive quantities of all goods.d.must be consuming at a point where her budget constraint touches one of the axes.ANS: B DIF: 2 REF: 21-1 NAT: AnalyticLOC: Utility and consumer choice TOP: Budget constraintMSC: Interpretive。