《国际贸易》填空题作业一

Exercises of International Trade for chapter1-4(Part One)1.Benefits of international trade are limited toA.tangible goodB.intangible goodsC.all goods but not servicesD.services.E.None of the above2.Because the Constitution forbids restraints on interstate trade,A.the U.S. may not impose tariffs on imports from NAFTA countries.B.the U.S. may not affect the international value of the $ U.S.C.the U.S. may not put restraints on foreign investments in California if itinvolves a financial intermediary in New York State.D.the U.S. may not impose export duties.E.None of the above3.Who sells what to whomA.has been a major preoccupation of international economics.B.is not a valid concern of international economicsC.is not considered important for government foreign trade policy since suchdecisions are made in the private competitive market.D.is determined by political rather than economic factors.E.None of the above4.Since 1994, trade rules have been enforced byA.the WTOB.the G10.C.the GA TTD.The U.S. CongressE.None of the above.5.Trade theorists have proven that the gains from tradeA.must raise the economic welfare of every country engaged in trade.B.must raise the economic welfare of everyone in every country engaged intrade.C.must harm owners of "specific" factors of productionD.will always help "winners" by an amount exceeding the losses of "losers."E.None of the above.6.The two neighbors of the United States do a lot more trade with the UnitedStates than European economies of equal size.A.This contradicts predictions from gravity models.B.This is consistent with predictions from gravity models.C.This is relevant to any inferences that may be drawn from gravity models.D.This is because these neighboring countries have exceptionally large GDPs.E.None of the above.7.Since World War II, the likelihood that any single item in the typicalconsumption basket of a consumer in the U.S. originated outside of the U.S.A.remained constant.B.increased.C.decreased.D.fluctuated widely with no clear trend.E.both A and D above.8.Which of the following does not explain the extent of trade between Irelandand the U.S.?A.Historical tiesB.Cultural Linguistic tiesC.Gravity modelD.Multinational CorporationsE.None of the above9. A country engaging in trade according to the principles of comparativeadvantage gains from trade because itA.is producing exports indirectly more efficiently than it could alternatively.B.is producing imports indirectly more efficiently than it could domestically.C.is producing exports using fewer labor units.D.is producing imports indirectly using fewer labor units.E.None of the above.10.The Ricardian model demonstrates thatA.trade between two countries will benefit both countries.B.trade between two countries may benefit both regardless of which goodexports.C.trade between two countries may benefit both if each exports the product inwhich it has a comparative advantage.D.trade between two countries may benefit one but harm the other.E.None of the above.11.A nation engaging in trade according to the Ricardian model will find itsconsumption bundleA.inside its production possibilities frontier.B.on its production possibilities frontier.C.outside its production possibilities frontier.D.inside its trade-partner's production possibilities frontier.E.on its trade-partner's production possibilities frontier.12.Assume that labor is the only factor of production and that wages in theUnited States equal $20 per hour while wages in Japan are $10 per hour.Production costs would be lower in the United States as compared to Japan ifA.U.S. labor productivity equaled 40 units per hour and Japan's 15 units perhour.B.U.S. productivity equaled 30 units per hour whereas Japan's was 20.C.U.S. labor productivity equaled 20 and Japan's 30.D.U.S. labor productivity equaled 15 and Japan's 25 units per hour.E.None of the above.13.If a production possibilities frontier is bowed out (concave to the origin), thenproduction occurs under conditions ofA.constant opportunity costs.B.increasing opportunity costs.C.decreasing opportunity costs.D.infinite opportunity costs.E.None of the above.14.Which of the following statements is true?A.Free trade is beneficial only if your country is strong enough to stand up toforeign competition.B.Free trade is beneficial only if your competitor does not pay unreasonably lowwages.C.Free trade is beneficial only if both countries have access to the sametechnology.D.All of the above.E.None of the above.15.In the 2-factor, 2 good Heckscher-Ohlin model, an influx of workers fromacross the border wouldA.move the point of production along the production possibility curve.B.shift the production possibility curve outward, and increase the production ofboth goods.C.shift the production possibility curve outward and decrease the production ofthe labor-intensive product.D.shift the production possibility curve outward and decrease the production ofE.None of the above.16.The slope of a country's PPF reflectsA.the opportunity cost of product S in terms of product T.B.the opportunity cost of T in terms of money prices.C.the opportunity cost of S or T in terms of S.D.Both A and B.E.Both A and C.17.In the 2-factor, 2 good Heckscher-Ohlin model, a change from autarky (notrade) to trade will benefit the owners ofA.capital.B.the relatively abundant factor of production.C.the relatively scarce factor of production.D.the relatively inelastic factor of production.E.the factor of production with the largest elasticity of substitution.18.The Hechscher-Ohlin model states that a country will have a comparativeadvantage in the good or service whose production is relatively intensive in the ________ with which the country is relatively abundant.A.tastesB.technologyC.factor of productionD.opportunity costE.scale economy19.As opposed to the Ricardian model of comparative advantage, theassumption of diminishing returns in the Heckscher-Ohlin model means that the probability is greater that with tradeA.countries will not be fully specialized in one product.B.countries will benefit from free international trade.C.countries will consume outside their production possibility frontier.parative advantage is primarily supply related.E.None of the above.20.The following are all assumptions that must be accepted in order to apply theHeckscher-Ohlin Theory, except for oneA.Countries differ in their endowments of factors of production.B.Countries differ in their technologies.C.There are two factors of production.D.Production is subject to constant returns to scale.E.One product always requires more machines per worker in its production thandoes the other product.21.In international-trade equilibrium in the Heckscher-Ohlin model,A.the capital rich country will charge less for the capital intensive good than theprice paid by the capital poor country for the capital-intensive good.B.the capital rich country will charge the same price for the capital intensivegood as that paid for it by the capital poor country.C.the capital rich country will charge more for the capital intensive good thanthe price paid by the capital poor country for the capital-intensive good.D.the workers in the capital rich country will earn more than those in the poorcountry.E.the workers in the capital rich country will earn less than those in the poorcountry.22.The Heckscher-Ohlin model predicts all of the following exceptA.which country will export which productB.which factor of production within each country will gain from trade.C.the volume of trade.D.that wages will tend to become equal in both trading countries.E.None of the above.23.If Australia has more land per worker, and Belgium has more capital perworker, then if trade were to open up between these two countries,A.the real income of capital owners in Australia would rise.B.the real income of labor in Australia would clearly rise.C.the real income of labor in Belgium would clearly rise.D.the real income of landowners in Belgium would fall.E.the real incomes of capital owners in both countries would rise.24.The reason trade clearly benefits a country is thatA.it raises the real income of the more productive elements in society.B.it lowers the real income of the less productive elements in society.C.it increases the levels of consumption of everyone.D.it increases society's consumption choices.E.None of the above.25.International trade has strong effects on income distributions. Therefore,international tradeA.is beneficial to everyone in both trading countries.B.will tend to hurt one trading country.C.will tend to hurt some groups in each trading country.D.will tend to hurt everyone in both countries.E.will be beneficial to all those engaged in international trade.。