上 海 金 融 学 院

模拟试题一

I. Multiple Choice (30%, 1.5×20)

1. The movement to free international trade is most likely to generate short-term

unemployment in which industries?

a. Industries in which there are neither imports nor exports

b. Import-competing industries

c. Industries that sell to domestic and foreign buyers

d. Industries that sell to only foreign buyers

2. __________ is the ability of a firm/industry, under free and fair market

conditions, to design, produce, and market goods and services that are better and/or cheaper than those of other firms/industries.

a. Competitiveness

b. Protectionism

c. Comparative advantage

d. Absolute advantage

3. In a two-product, two-country world, international trade can lead to increases in:

a. Consumer welfare only if output of both products is increased

b. Output of both products and consumer welfare in both countries

c. Total production of both products, but not consumer welfare in both

countries

d. Consumer welfare in both countries, but not total production of both

products

4. The gains from international trade increase as:

a. A nation consumes inside of its production possibilities schedule

b. A nation consumes along its production possibilities schedule

c. The international terms of trade rises above the nation’s autarky price

d. The international terms of trade approaches the nation’s autarky price

5. A rise in the price of imports or a fall in the price of exports will:

a. Improve the terms of trade

b. Worsen the terms of trade

c. Expand the production possibilities curve

d. Contract the production possibilities curve

6.The imposition of tariffs on imports results in deadweight welfare losses for the

home economy. These losses consist of the:

a. Protective effect plus consumption effect

b. Redistribution effect plus revenue effect

c. Revenue effect plus protective effect

d. Consumption effect plus redistribution effect

7. Should the home country be “large” relative to the world, its imposition of a

tariff on imports would lead to an increase in domestic welfare if the

terms-of-trade effect exceeds the sum of the:

a. Revenue effect plus redistribution effect

b. Protective effect plus revenue effect

c. Consumption effect plus redistribution effect

d. Protective effect plus consumption effect

8.Hong Kong and South Korea are examples of developing nations that have

recently pursued industrialization policies.

a. Import substitution

b. Export promotion

c. Commercial dumping

d.Multilateral contract

9.Which of the following represents the stage where economic integration is least

complete?

a. Free trade area

b. Monetary union

c. Common market

d. Customs union

10. On the balance-of-payments statements, merchandise imports are classified in:

a. Current account

b. Capital account

c. Unilateral transfer account

d. Official settlements account

11. Which of the following tends to cause the China RMB to appreciate in value?

a. An increase in China prices above foreign prices

b. Rapid economic growth in foreign countries

c. A fall in China interest rates below foreign levels

d. An increase in the level of China income

12. If Canadian speculators believed the Swiss franc was going to appreciate against

the U.S. dollar, they would:

a. Purchase Canadian dollars

b. Purchase U.S. dollars

c. Purchase Swiss francs

d. Sell Swiss francs

13. The relationship between the exchange rate and the prices of tradable goods is

known as the:

a. Purchasing-power-parity theory

b. Asset-markets theory

c. Monetary theory

d. Balance-of-payments theory

14. An exchange rate is said to __________ when its short-run response to a change

in market fundamentals is greater than its long-run response.

a. Overshoot

b. Undershoot

c. Depreciate

d. Appreciate

15. Given a system of floating exchange rates, assume that Boeing Inc. of the United

States places a large order, payable in yen, with a Japanese contractor for jet engine parts. The immediate effect of this transaction will be a shift in the: