国际贸易课堂练习题(1-6章)

International Trade (Chapter 1-6)Chapter 1: International Economics is DifferentMultiple Choice Questions1.Sovereign nations:a.Are subject to laws passed by the United Nations.b.Must be concerned with the interests of foreigners when developingeconomic policy.c.Often ignore the interests of foreigners.d.Must coordinate their monetary policy with the World Bank.ANSWER: C2.Since the early 2000s, a variety of services has been subject to outsourcing in theUnited States EXCEPT for:a.Data entry.b.Telephone call centers.c.Software development.d.Haircuts.ANSWER: D3.On July 21st, 2005, the Chinese government changed the value of the yuan from8.28 yuan per U.S. dollar to 8.11 yuan per U.S. dollar. This implies a __________dollar and a __________ yuan.a.Weaker; weakerb.Weaker; strongerc.Stronger; strongerd.Stronger; weakerANSWER: BTrue/False Questions4.Politicians do not erect barriers to trade with other countries because they are alsoconcerned with the well-being of foreigners.ANSWER: FALSEbor may be internationally mobile, but capital and land do not migrate from onecountry to another.ANSWER: FALSE6.India and China are among the main providers of outsourcing services.ANSWER: TRUEChapter 2: The Basic Theory Using Demand and SupplyMultiple Choice Questions1. All of the following can lead to an increase in the demand for ice cream, a normal good, EXCEPT:A. A decrease in income.B. An increase in the price of popsicles.C. A new scientific study that finds eating ice cream does not cause weight gain.D. A 10% increase in population.ANSWER: A2. An increase in demand will lead to:A. An increase in supply.B. A fall in quantity.C. An increase in price.D. A decrease in producer surplus.ANSWER: C3. Referring to the following figure, at a price of $70, the amount of consumer surplus is:A. $6,000,000.B. $8,000,000.C. $15,000,000.D. $30,000,000.ANSWER: B4. Referring to the following figure, at a price of $70, the amount of producer surplus is:A. $6,000,000.B. $8,000,000.C. $15,000,000.D. $30,000,000.ANSWER: A5. China produces shoes at a lower cost than the United States. As a result, most of the shoes purchased in the United States are made in China. Should this be a concern to anyone in the United States? If so, who should be concerned and why? If not, why not?POSSIBLE RESPONSE: As a result of the free trade between China and the U.S., the price of shoes in the U.S. will be equal to the international price. What are the effects of free trade on producers and consumers of shoes in the United States? As a result of the imports of shoes from China, the price of shoes will be lower (compared to the situation of no trade). Consumers will gain additional consumer surplus due to the lower price and the increased purchases of shoes (consumers’ total surplus ismeasured by the area below the demand curve for shoes and above the international price). Facing a lower price (the international price), the domestic producers of shoes in the United States will react by decreasing their production of shoes. Hence, there is loss of surplus to producers associated with the opening of trade. Some of the shoe producers might go out of business, which might create temporary unemployment in this industry which will last until the workers producing shoes find employment in another sector of the economy. In general, consumers gain more than producers lose, so there is a net gain for the U.S. of opening to trade.Price ($/unit) Quantity (thousands) Supply Demand 150 1207040 100 200 300 10Chapter 3Multiple Choice1. The author of the Wealth of Nations was:a.David Ricardo.b.Paul Samuelson.c. Adam Smith.d.Karl Marx.ANSWER: C2. Refer to Table 1 ,The number of labor hours to make 1 umbrella in the United Kingdom is:a.0.5.b. 1.c. 1.43.d. 2.3.Refer to the Table 2, The United Kingdom has a comparative advantage in the production of __________ and the Rest of the World has a comparative advantage in the production of __________.Both goods; neither goodNeither good; both goodsUmbrellas; cornCorn; umbrellasTrue/False Questions4. In Ricardo’s model, if labor productivity is constant, the production possibilities curve will look like a straight line.ANSWER: TRUE5. If Country X has a higher level of labor productivity than the rest of the world in the production of a good, then Country X has a comparative advantage in the production of the good.ANSWER: FALSEEssay QuestionsSuppose labor productivity in France is such that one hour of labor is required to produce one gallon of wine while two hours of labor are required to produce one pound of cheese. Assuming the availability of 1 million labor hours, draw a constant cost production possibilities curve for France with cheese on the vertical axis and wine on the horizontal axis.If France has a comparative advantage in the production of wine, show where, with free trade, France will produce on its production possibilities curve. If the free trade price of wine is two pounds of cheese per gallon, draw a trade line and use it to illustrate how France can gain from trade.Chapter 4Multiple Choice1. Constant cost production possibility curves lead to __________ specialization.Increasing cost production possibility curves lead to __________ specialization.a. no; partialplete; noc. complete; partiald.partial; completeANSWER: C2、Which of the following are reasons why increasing marginal costs of productionarise?I. Different products use inputs to production in different proportions.II. Different inputs are better utilized in the production of different products. III. Different countries have different endowments of the different factors of production.a. IIIb. II and IIIc. I and II and IIId. I and IIANSWER: D3. If Country A is labor-abundant and capital-scarce, Country B is labor-scarce andcapital-abundant, Good X is produced in a labor-intensive process, and Good Y isproduced in a capital-intensive process, we would expect that:a. Country A would export Good X.b. Country B would import Good Y.c. Country A would import Good X.d. Country B would import both Good X and Good Y.Answer: A4. China has 20% of the world’s population but only 10% of the world’s farmableland. The Heckscher-Ohlin theory of trade would predict which of the following forChina following the opening of trade?A. China will export land-intensive goods like wheat and import labor-intensivegoods like clothing.B. China will shift resources into the production of agricultural goods and away frommanufactured goods.C. China will shift resources out of the production of agricultural goods and into theproduction of labor-intensive goods.D. China will export capital-intensive goods like automobiles and importlabor-intensive goods like clothing.ANSWER: C5. In Painduvin, bread is __________ and cheese is __________.a. Labor-intensive; land-intensiveb. Land-intensive; labor-intensivec. Labor-abundant; land-abundantd. Land-abundant; labor-abundant1 unit of Bread 1 unit of CheeseLabor Input 5 dollars 20 dollarsLand Input 4 dollars 10 dollarsANSWER: BTrue/False QuestionsThe Heckscher-Ohlin theory of trade differs from the Ricardian model by assuming that there are only two goods.ANSWER: FALSEChapter 5Multiple ChoiceAccording to the factor-price-equalization theorem, free trade equalizes:a. Product prices as well as the prices of individual factors of production between two countries.b. Product prices between two countries but not the prices of individual factors of production.c. Product prices between two countries and factor prices within each country but not between countries.d. Product prices and factor prices within each country but not between countries. ANSWER: AEssay QuestionThe following equations describe the long-run situation for prices and costs, where the numbers indicate the amounts of labor and land needed to produce a unit of corn and toys.Pcorn = 80w + 40rPtoys = 100w + 30rQuestions:1. If the price of corn is initially 200 and the price of toys is initially 200, what are the values for the wage rate w and the rental rate r? What is the labor cost per unit of corn output? Per unit of toys? What is the rental cost per unit of corn? Per unit of toys?200 = 80w + 40r200 = 100w + 30rThe solution is w=1.25 and r=2.5.The labor cost per unit of corn output is80 x 1.25=100;the labor cost per unit of toys is 100 x 1.25=125.The rental cost per unit of corn is 40x2.5=100, and the rental cost per unit of toys is 30X2.5=75.2. The price of corn now increases to 240. The price of toys stays the same. What are the new values for w and r after adjustment to the new long-run situation?240 = 80w + 40r240 = 100w + 30rThe solution is w=0.5 and r=5.Chapter 6Multiple Choice1.The production of one unit of good X requires one unit of labor and one unit of capital. When 2 units of labor and 2 units of capital are employed in the production process, 3 units of good X are produced. This phenomenon is called:a.monopolistic competitionb. biased growthc.economies of scaled. product differentiationANSWER: C2.Internal scale economies occur when:●A. Firm growth leads to more specialization by workers.●B. Industry growth gives rise to better input markets.●C. Industry growth leads to a greater diffusion of knowledge among firms.●D. Firm growth drives up prices of some of the firm’s inputs.ANSWER: A3.The clustering of some industries, such as banking and finance in New York Cityand high-technology computer production in Silicon Valley, can be explained by: ●A. External scale economies.●B. Monopolistic competition.●C. Intra-industry trade.●D. The demand for variety.ANSWER: A4. In a monopolistically competitive market, as the number of varieties increases, the price __________ because the demand for each variety becomes more __________.A. increases; elasticB. decreases; elasticC. increases; inelasticD. decreases; inelasticANSWER: B5.Which of the following is the formula for a product’s intra-industry trade (IIT) share?1 –X M1 (X + M)1 – [ X M / (X + M)]1 – [ X + M / (X M)]ANSWER: C6.An oligopoly exists when:a.A few firms supply much of the market.b.A single firm supplies most of the market.c.Many small firms supply the market.d. Scale economies exist and are external to the firm, not internal to the firm. ANSWER: ATrue/False Questions1.Over time, Intra-Industry Trade has become smaller and smaller as a percentage of overall trade.ANSWER: FALSE2. Net trade for a product is the value of the difference between exports and imports for that product.ANSWER: TRUE。