1、1CHAPTER 1THE INTERNATIONAL ECONOMYMULTIPLE-CHOICE QUESTIONS1. A primary reason why nations conduct international trade is because:a.Some nations prefer to produce one thing while others produce other thingsb.Resources are not equally distributed among all trading nationsc.Trade enhances opportuniti

2、es to accumulate profitsd.Interest rates are not identical in all trading nations2. A main advantage of specialization results from:a.Economies of large-scale productionb.The specializing country behaving as a monopolyc.Smaller production runs resulting in lower unit costsd.High wages paid to foreig

3、n workers3. International trade in goods and services is sometimes used as a substitute for all of the following except:a.International movements of capitalb.International movements of laborc.Domestic production of the same goods and servicesd.Domestic production of different goods and services4. If

4、 a nation has an open economy, it means that the nation:a.Allows private ownership of capitalb.Has flexible exchange ratesc.Has fixed exchange ratesd.Conducts trade with other countries5. International trade forces domestic firms to become more competitive in terms of:a.The introduction of new produ

5、ctsb.Product design and qualityc.Product priced.All of the above2Test Bank for International Economics, 9e6. 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 exportsb.Import-competing i

6、ndustriesc.Industries that sell to domestic and foreign buyersd.Industries that sell to only foreign buyers7. International trade is based on the idea that:a.Exports should exceed importsb.Imports should exceed exportsc.Resources are more mobile internationally than are goodsd.Resources are less mob

7、ile internationally than are goods8. Arguments for free trade are sometimes disregarded by politicians because:a.Maximizing domestic efficiency is not considered importantb.Maximizing consumer welfare may not be a chief priorityc.There exist sound economic reasons for keeping ones economy isolated f

8、rom other economiesd.Economists tend to favor highly protected domestic markets9. How much physical output a worker producers in an hours work depends on:a.The workers motivation and skillb.The technology, plant, and equipment in usec.How easy the product is to manufactured.All of the above10. The l

9、argest amount of trade with the United States in recent years has been conducted by:a.Canadab.Germanyc.Mexicod.United Kingdom11. Increased foreign competition tends to:a.Intensify inflationary pressures at homeb.Induce falling output per worker-hour for domestic workersc.Place constraints on the wag

10、es of domestic workersd.Increase profits of domestic import-competing industries12. _ 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.Competitivenessb.Pro

11、tectionismc.Comparative advantaged.Absolute advantageChapter 1:The International Economy313. A firms _, relative to that of other firms, is generally regarded as the most important determinant of competitiveness.a.Income levelb.Tastes and preferencesc.Environmental regulationd.Productivity14. Free t

12、raders maintain that an open economy is advantageous in that it provides all of the following except:a.Increased competition for world producersb.A wider selection of products for consumersc.The utilization of the most efficient production methodsd.Relatively high wage levels for all domestic worker

13、s15. Recent pressures for protectionism in the United States have been motivated by all of the following except:a.U.S. firms shipping component production overseasb.High profit levels for American corporationsc.Sluggish rates of productivity growth in the United Statesd.High unemployment rates among

14、 American workers16. International trade tends to cause welfare losses to at least some groups in a country:a.The less mobile the countrys resourcesb.The more mobile the countrys resourcesc.The lower the countrys initial living standardd.The higher the countrys initial living standard17. For a natio

15、n to maximize its productivity in a global economy:a.Only imports are necessaryb.Only exports are necessaryc.Both imports and exports are necessaryd.Neither imports nor exports are necessary18. A feasible effect of international trade is that:a.A monopoly in the home market becomes an oligopoly in t

16、he world marketb.An oligopoly in the home market becomes a monopoly in the world marketc.A purely competitive firm becomes an oligopolistd.A purely competitive firm becomes a monopolist19. International trade in goods and services tends to:a.Increase all domestic costs and pricesb.Keep all domestic

17、costs and prices at the same levelc.Lessen the amount of competition facing home manufacturersd.Increase the amount of competition facing home manufacturers4Test Bank for International Economics, 9e20. The real income of domestic producers and consumers can be increased by:a.Technological progress,

18、but not international tradeb.International trade, but not technological progressc.Technological progress and international traded.Neither technological progress nor international trade21. In the United States, automobiles are:a.Imported, but not exportedb.Exported, but not importedc.Imported and exp

19、ortedd.Neither exported nor imported22. Technological improvements are similar to international trade since they both:a.Provide benefits for all producers and consumersb.Increase the nations aggregate incomec.Reduce unemployment for all domestic workersd.Ensure that industries can operate at less th

20、an full capacity23. A sudden shift from import tariffs to free trade may induce short-term unemployment in:a.Import-competing industriesb.Industries that are only exportersc.Industries that sell domestically as well as exportd.Industries that neither import nor export24. Recent empirical studies ind

21、icate that productivity performance in industries is:a.Directly related to globalization of industriesb.Inversely related to globalization of industriesc.Not related to globalization of industriesd.Any of the above25. Empirical research indicates that _ best enhances productivity gains for firms and

22、 industries.a.Local competitionb.Regional competitionc.Global competitiond.No competition26. By the mid-1990s, _ banks had become the worlds largest in terms of total assets.a.Britishb.Germanc.Japanesed.AmericanChapter 1:The International Economy527. A reduced share of the world export market for th

23、e United States would be attributed to:a.Decreased productivity in U.S. manufacturingb.High incomes of American householdsc.Relatively low interest rates in the United Statesd.High levels of investment by American corporations28. The dominant trading nation in the world market following World War II

24、 was:a.United Kingdomb.Germanyc.South Koread.United States29. A closed economy is one in which:a.Imports exactly equal exports, so that trade is balancedb.Domestic firms invest in industries overseasc.The home economy is isolated from foreign traded.Saving exactly equals investment at full employmen

25、t30. Relative to countries with low ratios of exports to gross domestic product, countries having high export to gross domestic product ratios are _ vulnerable to changes in the world market.a.Lessb.Morec.Equallyd.Any of the aboveCHAPTER 2FOUNDATIONS OF MODERN TRADE THEORYMULTIPLE-CHOICE QUESTIONS1.

26、 The mercantilists would have objected to:a.Export promotion policies initiated by the governmentb.The use of tariffs or quotas to restrict importsc.Trade policies designed to accumulate gold and other precious metalsd.International trade based on open markets6Test Bank for International Economics,

27、9e2. Unlike the mercantilists, Adam Smith maintained that:a.Trade benefits one nation only at the expense of another nationb.Government control of trade leads to maximum economic welfarec.All nations can gain from free international traded.The worlds output of goods must remain constant over time3.

28、The trading principle formulated by Adam Smith maintained that:a.International prices are determined from the demand side of the marketb.Differences in resource endowments determine comparative advantagec.Differences in income levels govern world trade patternsd.Absolute cost differences determine t

29、he immediate basis for trade4. Unlike Adam Smith, David Ricardos trading principle emphasizes the:a.Demand side of the marketb.Supply side of the marketc.Role of comparative costsd.Role of absolute costs5. When a nation requires fewer resources than another nation to produce a product, the nation is

30、 said to have a (an):a.Absolute advantage in the production of the productb.Comparative advantage in the production of the productc.Lower marginal rate of transformation for the productd.Lower opportunity cost of producing the product6. According to the principle of comparative advantage, specializa

31、tion and trade increase a nations total output since:a.Resources are directed to their highest productivityb.The output of the nations trading partner declinesc.The nation can produce outside of its production possibilities curved.The problem of unemployment is eliminated7. In a two-product, two-cou

32、ntry world, international trade can lead to increases in:a.Consumer welfare only if output of both products is increasedb.Output of both products and consumer welfare in both countriesc.Total production of both products, but not consumer welfare in both countriesd.Consumer welfare in both countries,

33、 but not total production of both products8. As a result of international trade, specialization in production tends to be:a.Complete with constant costscomplete with increasing costsb.Complete with constant costsincomplete with increasing costsc.Incomplete with constant costscomplete with increasing

34、 costsd.Incomplete with constant costsincomplete with increasing costsChapter 1:The International Economy79. A nation that gains from trade will find its consumption point being located:a.Inside its production possibilities curveb.Along its production possibilities curvec.Outside its production poss

35、ibilities curved.None of the aboveUsing the data of Table 2.1, answer Questions 10 through 15.Table 2.1.Output Possibilities for the U.S. and the U.K.Output per Worker per DayCountryTons of SteelTelevisionsUnited States545United Kingdom102010. Refer to Table 2.1. The United States has the absolute a

36、dvantage in the production of:a.Steelb.Televisionsc.Both steel and televisionsd.Neither steel nor televisions11. Refer to Table 2.1. The United Kingdom has a comparative advantage in the production of:a.Steelb.Televisionsc.Both steel and televisionsd.Neither steel nor televisions12. Refer to Table 2

37、.1. If trade opens up between the United States and the United Kingdom, American firms should specialize in producing:a.Steelb.Televisionsc.Both steel and televisionsd.Neither steel nor televisions13. Refer to Table 2.1. The opportunity cost of producing one ton of steel in the United States is:a.3

38、televisionsb.10 televisionsc.20 televisionsd.45 televisions8Test Bank for International Economics, 9e14. Refer to Table 2.1. Mutually advantageous trade will occur between the United States and the United Kingdom so long as one ton of steel trades for:a.At least 1 television, but no more than 2 tele

39、visionsb.At least 2 televisions, but no more than 3 televisionsc.At least 3 televisions, but no more than 4 televisionsd.At least 4 televisions, but no more than 5 televisions15. Refer to Table 2.1. The United Kingdom gains most from trade if:a.1 ton of steel trades for 2 televisionsb.1 ton of steel

40、 trades for 3 televisionsc.2 tons of steel trade for 4 televisionsd.2 tons of steel trade for 5 televisions16. Concerning international trade restrictions, which of the following is false? Trade restrictions:a.Limit specialization and the division of laborb.Reduce the volume of trade and the gains f

41、rom tradec.Cause nations to produce inside their production possibilities curvesd.May result in a country producing some of the product of its comparative disadvantage17. If a production possibilities curve is bowed out (i.e., concave) in appearance, production occurs under conditions of:a.Constant

42、opportunity costsb.Increasing opportunity costsc.Decreasing opportunity costsd.Zero opportunity costs18. Increasing opportunity costs suggest that:a.Resources are not perfectly shiftable between the production of two goodsb.Resources are fully shiftable between the production of two goodsc.A country

43、s production possibilities curve appears as a straight lined.A countrys production possibilities curve is bowed inward (i.e., convex) in appearance19. The trading-triangle concept is used to indicate a nations:a.Exports, marginal rate of transformation, terms of tradeb.Imports, terms of trade, margi

44、nal rate of transformationc.Marginal rate of transformation, imports, exportsd.Terms of trade, exports, imports20. Assuming increasing cost conditions, trade between two countries would not be likely if they have:a.Identical demand conditions but different supply conditionsb.Identical supply conditi

45、ons but different demand conditionsc.Different supply conditions and different demand conditionsd.Identical demand conditions and identical supply conditionsChapter 1:The International Economy9Use the data in Table 2.2 to answer Questions 21 through 26.Table 2.2.Output Possibilities for South Korea

46、and JapanOutput per Worker per DayCountryTons of SteelVCRsSouth Korea8040Japan202021. Refer to Table 2.2. The opportunity cost of one VCR in Japan is:a.1 ton of steelb.2 tons of steelc.3 tons of steeld.4 tons of steel22. Refer to Table 2.2. The opportunity cost of one VCR in South Korea is:a. ton of

47、 steelb.1 ton of steelc.1 tons of steeld.2 tons of steel23. Refer to Table 2.2. According to the principle of absolute advantage, Japan should:a.Export steelb.Export VCRsc.Export steel and VCRsd.None of the above; there is no basis for gainful trade24. Refer to Table 2.2. According to the principle

48、of comparative advantage:a.South Korea should export steelb.South Korea should export steel and VCRsc.Japan should export steeld.Japan should export steel and VCRs25. Refer to Table 2.2. With international trade, what would be the maximum amount of steel that South Korea would be willing to export t

49、o Japan in exchange for each VCR?a. ton of steelb.1 ton of steelc.1 tons of steeld.2 tons of steel10Test Bank for International Economics, 9e26. Refer to Table 2.2. With international trade, what would be the maximum number of VCRs that Japan would be willing to export to South Korea in exchange for

50、 each ton of steel?a.1 VCRb.2 VCRsc.3 VCRsd.4 VCRs27. The earliest statement of the principle of comparative advantage is associated with:a.Adam Smithb.David Ricardoc.Eli Heckscherd.Bertil Ohlin28. If Hong Kong and Taiwan had identical labor costs but were subject to increasing costs of production:a

51、.Trade would depend on differences in demand conditionsb.Trade would depend on economies of large-scale productionc.Trade would depend on the use of different currenciesd.There would be no basis for gainful trade29. If the international terms of trade settle at a level that is between each countrys

52、opportunity cost:a.There is no basis for gainful trade for either countryb.Both countries gain from tradec.Only one country gains from traded.One country gains and the other country loses from trade30. International trade is based on the notion that:a.Different currencies are an obstacle to internat

53、ional tradeb.Goods are more mobile internationally than are resourcesc.Resources are more mobile internationally than are goodsd.A countrys exports should always exceed its imports31. Refer to Figure 2.1. The relative cost of steel in terms of aluminum is:a.4.0 tonsb.2.0 tonsc.0.5 tonsd.0.25 tonsCha

54、pter 1:The International Economy11Figure 2.1.Production Possibilities Schedule32. Refer to Figure 2.1. The relative cost of aluminum in terms of steel is:a.4.0 tonsb.2.0 tonsc.0.5 tonsd.0.25 tons33. Refer to Figure 2.1. If the relative cost of steel were to rise, then the production possibilities sc

55、hedule would:a.Become steeperb.Become flatterc.Shift inward in a parallel mannerd.Shift outward in a parallel manner34. Refer to Figure 2.1. If the relative cost of aluminum were to rise, then the production possibilities schedule would:a.Become steeperb.Become flatterc.Shift inward in a parallel ma

56、nnerd.Shift outward in a parallel manner35. When a nation achieves autarky equilibrium:a.Input price equals final product priceb.Labor productivity equals the wage ratec.Imports equal exportsd.Production equals consumption12Test Bank for International Economics, 9e36. When a nation is in autarky and

57、 maximizes its living standard, its consumption and production points are:a.Along the production possibilities scheduleb.Above the production possibilities schedulec.Beneath the production possibilities scheduled.Any of the above37. If Canada experiences increasing opportunity costs, its supply sche

58、dule of steel will be:a.Downward-slopingb.Upward-slopingc.Horizontald.Vertical38. If Canada experiences constant opportunity costs, its supply schedule of steel will be:a.Downward-slopingb.Upward-slopingc.Horizontald.Vertical39. The gains from international trade increase as:a.A nation consumes insi

59、de of its production possibilities scheduleb.A nation consumes along its production possibilities schedulec.The international terms of trade rises above the nations autarky priced.The international terms of trade approaches the nations autarky price40. In a two-country, two-product world, the statem

60、ent “Japan enjoys a comparative advantage over France in steel relative to bicycles” is equivalent to:a.France having a comparative advantage over Japan in bicycles relative to steelb.France having a comparative disadvantage against Japan in bicycles and steelc.Japan having a comparative advantage o