国际经济学英文版(第八版)章节练习第四章
克鲁格曼《国际经济学》第八版课后答案(英文)-Ch18
Chapter 18The International Monetary System, 1870–1973Chapter OrganizationMacroeconomic Policy Goals in an Open EconomyInternal Balance: Full Employment and Price-Level StabilityExternal Balance: The Optimal Level of the Current Account International Macroeconomic Policy under the Gold Standard, 1870–1914 Origins of the Gold StandardExternal Balance under the Gold StandardThe Price-Specie-Flow MechanismThe Gold Standard “Rules of the Game”: Myth and RealityBox: Hume v. the MercantilistsInternal Balance under the Gold StandardCase Study: The Political Economy of Exchange Rate Regimes:Conflict over America’s Monetary Standard During the 1890s The Interwar Years, 1918–1939The Fleeting Return to GoldInternational Economic DisintegrationCase Study: The International Gold Standard and the Great DepressionThe Bretton Woods System and the International Monetary Fund Goals and Structure of the IMFConvertibility and the Expansion of Private Capital FlowsSpeculative Capital Flows and CrisesAnalyzing Policy Options under the Bretton Woods System Maintaining Internal BalanceMaintaining External BalanceExpenditure-Changing and Expenditure-Switching PoliciesThe External-Balance Problem of the United StatesCase Study: The Decline and Fall of the Bretton Woods System Worldwide Inflation and the Transition to Floating Rates SummaryChapter OverviewThis is the first of five international monetary policy chapters. These chapters complement the preceding theory chapters in several ways. They provide the historical and institutional background students require to place their theoretical knowledge in a useful context. The chapters also allow students, through study of historical and current events, to sharpen their grasp of the theoretical models and to develop the intuition those models can provide. (Application of the theory to events of current interest will hopefully motivate students to return to earlier chapters and master points that may have been missed on the first pass.)Chapter 18 chronicles the evolution of the international monetary system from the gold standard of1870–1914, through the interwar years, and up to and including the post-World War II Bretton Woods regime that ended in March 1973. The central focus of the chapter is the manner in which each system addressed, or failed to address, the requirements of internal and external balance for its participants.A country is in internal balance when its resources are fully employed and there is price level stability. External balance implies an optimal time path of the current account subject to its being balanced over the long run. Other factors have been important in the definition of external balance at various times, and these are discussed in the text. The basic definition of external balance as an appropriate current-account level, however, seems to capture a goal that most policy-makers share regardless of the particular circumstances.The price-specie-flow mechanism described by David Hume shows how the gold standard could ensure convergence to external balance. You may want to present the following model of the price-specie-flow mechanism. This model is based upon three equations: 1. The balance sheet of the central bank. At the most simple level, this is justgold holdings equals the money supply: G M.2. The quantity theory. With velocity and output assumed constant and bothnormalized to 1, this yields the simple equation M P.3. A balance of payments equation where the current account is a function of thereal exchange rate and there are no private capital flows: CA f(E P*/P)These equations can be combined in a figure like the one below. The 45 line represents the quantity theory, and the vertical line is the price level where the real exchange rate results in a balanced current account. The economy moves along the 45 line back towards the equilibrium Point 0 whenever it is out of equilibrium. For example, the loss of four-fifths of a country’s gold would put that country at Point a with lower prices and a lower money supply. The resulting real exchange rate depreciation causes a current account surplus which restores money balances as the country proceeds up the 45 line froma to 0.FigureThe automatic adjustment process described by the price-specie-flow mechanism is expedited by following “rules of the game” under which governments contract the domestic source components oftheir monetary bases when gold reserves are falling (corresponding to a current-account deficit) and expand when gold reserves are rising (the surplus case).In practice, there was little incentive for countries with expanding gold reserves to follow the “rules of the game.” This increased the contractionary burden shouldered by countries with persistent current account deficits. The gold standard also subjugated internal balance to the demands of external balance. Research suggests price-level stability and high employment were attained less consistently under the gold standard than in the post-1945 period.The interwar years were marked by severe economic instability. The monetization of war debt and of reparation payments led to episodes of hyperinflation in Europe. Anill-fated attempt to return to thepre-war gold parity for the pound led to stagnation in Britain. Competitive devaluations and protectionism were pursued in a futile effort to stimulate domestic economic growth during the Great Depression.These beggar-thy-neighbor policies provoked foreign retaliation and led to the disintegration of the world economy. As one of the case studies shows, strict adherence to the Gold Standard appears to have hurt many countries during the Great Depression.Determined to avoid repeating the mistakes of the interwar years, Allied economic policy-makers metat Bretton Woods in 1944 to forge a new international monetary system for the postwar world. The exchange-rate regime that emerged from this conference had at its center the . dollar. All other currencies had fixed exchange rates against the dollar, which itself had a fixed value in terms of gold.An International Monetary Fund was set up to oversee the system and facilitate its functioning by lending to countries with temporary balance of payments problems.A formal discussion of internal and external balance introduces the concepts of expenditure-switching and expenditure-changing policies. The Bretton Woods system, with its emphasis on infrequent adjustmentof fixed parities, restricted the use of expenditure-switching policies. Increases in U.S. monetary growth to finance fiscal expenditures after the mid-1960s led to a loss of confidence in the dollar and the termination of the dollar’s convertibility into gold. The analysis presented in the text demonstrateshow the Bretton Woods system forced countries to “import” inflation from the United States and shows that the breakdown of the system occurred when countries were no longer willing to accept this burden.Answers to Textbook Problems1. a. Since it takes considerable investment to develop uranium mines, you wouldwant a larger current account deficit to allow your country to finance some of the investment with foreign savings.b. A permanent increase in the world price of copper would cause a short-termcurrent account deficit if the price rise leads you to invest more in coppermining. If there are no investment effects, you would not change yourexternal balance target because it would be optimal simply to spend youradditional income.c. A temporary increase in the world price of copper would cause a currentaccount surplus. You would want to smooth out your country’s consumption bysaving some of its temporarily higher income.d. A temporary rise in the world price of oil would cause a current accountdeficit if you were an importer of oil, but a surplus if you were an exporter of oil.2. Because the marginal propensity to consume out of income is less than 1, atransfer of income from B to A increases savings in A and decreases savings in B.Therefore, A has a current account surplus and B has a corresponding deficit.This corresponds to a balance of payments disequilibrium in Hume’s world, which must be financed by gold flows from B to A. These gold flows increase A’s money supply and decrease B’s money supply, pushing up prices in A and depressingprices in B. These price changes cease once balance of payments equilibrium has been restored.3. Changes in parities reflected both initial misalignments and balance of paymentscrises. Attempts to return to the parities of the prewar period after the war ignored the changes in underlying economic fundamentals that the war caused. This made some exchange rates less than fully credible and encouraged balance ofpayments crises. Central bank commitments to the gold parities were also less than credible after the wartime suspension of the gold standard, and as a result of the increasing concern of governments with internal economic conditions.4. A monetary contraction, under the gold standard, will lead to an increase in thegold holdings of the contracting country’s central bank if other countries do not pursue a similar policy. All countries cannot succeed in doing thissimultaneously since the total stock of gold reserves is fixed in the short run.Under a reserve currency system, however, a monetary contraction causes anincipient rise in the domestic interest rate, which attracts foreign capital. The central bank must accommodate the inflow of foreign capital to preserve theexchange rate parity. There is thus an increase in the central bank’s holdings of foreign reserves equal to the fall in its holdings of domestic assets. There is no obstacle to a simultaneous increase in reserves by all central banksbecause central banks acquire more claims on the reserve currency country while their citizens end up with correspondingly greater liabilities.5. The increase in domestic prices makes home exports less attractive and causes acurrent account deficit. This diminishes the money supply and causescontractionary pressures in the economywhich serve to mitigate and ultimately reverse wage demands and price increases.6. A “demand determined” increase in dollar reserve holdings would not affect theworld supply of money as central banks merely attempt to trade their holdings of domestic assets for dollar rese rves. A “supply determined” increase in reserve holdings, however, would result from expansionary monetary policy in the United States (the reserve center). At least at the end of the Bretton Woods era the increase in world dollar reserves arose in part because of an expansionarymonetary policyin the United States rather than a desire by other central banks to increasetheir holdings of dollar assets. Only the “supply determined” increase indollar reserves is relevant for analyzing the relationship between world holdings of dollar reserves by central banks and inflation.7. An increase in the world interest rate leads to a fall in a central bank’sholdings of foreign reserves as domestic residents trade in their cash forforeign bonds. This leads to a d ecline in the home country’s money supply. The central bank of a “small” country cannot offset these effects sinceit cannot alter the world interest rate. An attempt to sterilize the reserve loss through open market purchases would fail unless bonds are imperfect substitutes.8. Capital account restrictions insulate the domestic interest rate from the worldinterest rate. Monetary policy, as well as fiscal policy, can be used to achieve internal balance. Because there are no offsetting capital flows, monetary policy, as well as fiscal policy, can be used to achieve internal balance. The costs of capital controls include the inefficiency which is introduced when the domestic interest rate differs from the world rate and the high costs of enforcing the controls.9. Yes, it does seem that the external balance problem of a deficit country is moresevere. While the macroeconomic imbalance may be equally problematic in the long run regardless of whether it is a deficit or surplus, large external deficits involve the risk that the market will fix the problem quickly by ceasing to fund the external deficit. In this case, there may have to be rapid adjustment that could be disruptive. Surplus countries are rarely forced into rapid adjustments, making the problems less risky.10. An inflow attack is different from capital flight, but many parallels exist. Inan “outflow” attack, speculators sell the home currency and drain the central bank of its foreign assets. The central bank could always defend if it so chooses (they can raise interest rates to improbably high levels), but if it is unwilling to cripple the economy with tight monetary policy, it must relent. An “inflow”attack is similar in that the central bank can always maintain the peg, it is just that the consequences of doing so may be more unpalatable than breaking the peg. If money flows in, the central bank must buy foreign assets to keep thecurrency from appreciating. If the central bank cannot sterilize all the inflows (eventually they may run out of domestic assets to sell to sterilize thetransactions where they are buying foreign assets), it will have to either let the currency appreciate or let the money supply rise. If it is unwilling to allow and increase in inflation due to a rising money supply, breaking the peg may be preferable.11. a. We know that China has a very large current account surplus, placing them highabove the XX line. They also have moderate inflationary pressures (describedas “gathering” in the question, implying they are not yet very strong). This suggests that China is above the II line, but not too far above it. It wouldbe placed in Zone 1 (see below).b. China needs to appreciate the exchange rate to move down on the graph towardsbalance. (Shown on the graph with the dashed line down)c. China would need to expand government spending to move to the right and hitthe overall balance point. Such a policy would help cushion the negative aggregate demand pressurethat the appreciation might generate.。
I_E_11e_Ch_04
CHAPTER 4—TARIFFSMULTIPLE CHOICE1. 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 effectb. Redistribution effect plus revenue effectc. Revenue effect plus protective effectd. Consumption effect plus redistribution effectANS: A PTS: 12. Suppose that the United States eliminates its tariff on steel imports, permitting foreign-producedsteel to enter the U.S. market. Steel prices to U.S. consumers would be expected to:a. Increase, and the foreign demand for U.S. exports would increaseb. Decrease, and the foreign demand for U.S. exports would increasec. Increase, and the foreign demand for U.S. exports would decreased. Decrease, and the foreign demand for U.S. exports would decreaseANS: B PTS: 13. A $100 specific tariff provides home producers more protection from foreign competition when:a. The home market buys cheaper products rather than expensive productsb. It is applied to a commodity with many grade variationsc. The home demand for a good is elastic with respect to price changesd. It is levied on manufactured goods rather than primary productsANS: A PTS: 14. A lower tariff on imported aluminum would most likely benefit:a. Foreign producers at the expense of domestic consumersb. Domestic manufacturers of aluminumc. Domestic consumers of aluminumd. Workers in the domestic aluminum industryANS: C PTS: 15. When a government allows raw materials and other intermediate products to enter a country dutyfree, its tariff policy generally results in a:a. Effective tariff rate less than the nominal tariff rateb. Nominal tariff rate less than the effective tariff ratec. Rise in both nominal and effective tariff ratesd. Fall in both nominal and effective tariff ratesANS: B PTS: 16. Of the many arguments in favor of tariffs, the one that has enjoyed the most significant economicjustification has been the:a. Infant industry argumentb. Cheap foreign labor argumentc. Balance of payments argumentd. Domestic living standard argumentANS: A PTS: 17. The redistribution effect of an import tariff is the transfer of income from the domestic:a. Producers to domestic buyers of the goodb. Buyers to domestic producers of the goodc. Buyers to the domestic governmentd. Government to the domestic buyersANS: B PTS: 18. Which of the following is true concerning a specific tariff?a. It is exclusively used by the U.S. in its tariff schedules.b. It refers to a flat percentage duty applied to a good's market value.c. It is plagued by problems associated with assessing import product values.d. It affords less protection to home producers during eras of rising prices.ANS: D PTS: 19. The principal benefit of tariff protection goes to:a. Domestic consumers of the good producedb. Domestic producers of the good producedc. Foreign producers of the good producedd. Foreign consumers of the good producedANS: B PTS: 110. Which of the following policies permits a specified quantity of goods to be imported at one tariffrate and applies a higher tariff rate to imports above this quantity?a. Tariff quotab. Import tariffc. Specific tariffd. Ad valorem tariffANS: A PTS: 111. Assume the United States adopts a tariff quota on steel in which the quota is set at 2 million tons,the within-quota tariff rate equals 5 percent, and the over-quota tariff rate equals 10 percent.Suppose the U.S. imports 1 million tons of steel. The resulting revenue effect of the tariff quota would accrue to:a. The U.S. government onlyb. U.S. importing companies onlyc. Foreign exporting companies onlyd. The U.S. government and either U.S. importers or foreign exportersANS: A PTS: 112. When the production of a commodity does not utilize imported inputs, the effective tariff rate onthe commodity:a. Exceeds the nominal tariff rate on the commodityb. Equals the nominal tariff rate on the commodityc. Is less than the nominal tariff rate on the commodityd. None of the aboveANS: B PTS: 113. Developing nations often maintain that industrial countries permit raw materials to be importedat very low tariff rates while maintaining high tariff rates on manufactured imports. Which of the following refers to the above statement?a. Tariff-quota effectb. Nominal tariff effectc. Tariff escalation effectd. Protective tariff effectANS: C PTS: 114. Should the home country be "large" relative to the world, its imposition of a tariff on importswould lead to an increase in domestic welfare if the terms-of-trade effect exceeds the sum of the:a. Revenue effect plus redistribution effectb. Protective effect plus revenue effectc. Consumption effect plus redistribution effectd. Protective effect plus consumption effectANS: D PTS: 115. Should Canada impose a tariff on imports, one would expect Canada's:a. Terms of trade to improve and volume of trade to decreaseb. Terms of trade to worsen and volume of trade to decreasec. Terms of trade to improve and volume of trade to increased. Terms of trade to worsen and volume of trade to increaseANS: A PTS: 116. A beggar-thy-neighbor policy is the imposition of:a. Free trade to increase domestic productivityb. Trade barriers to increase domestic demand and employmentc. Import tariffs to curb domestic inflationd. Revenue tariffs to make products cheaper for domestic consumersANS: B PTS: 117. A problem encountered when implementing an "infant industry" tariff is that:a. Domestic consumers will purchase the foreign good regardless of the tariffb. Political pressure may prevent the tariff's removal when the industry maturesc. Most industries require tariff protection when they are matured. Labor unions will capture the protective effect in higher wagesANS: B PTS: 118. Tariffs are not defended on the ground that they:a. Improve the terms of trade of foreign nationsb. Protect jobs and reduce unemploymentc. Promote growth and development of young industriesd. Prevent overdependence of a country on only a few industriesANS: A PTS: 119. The deadweight loss of a tariff:a. Is a social loss since it promotes inefficient productionb. Is a social loss since it reduces the revenue for the governmentc. Is not a social loss because society as a whole doesn't pay for the lossd. Is not a social loss since only business firms suffer revenue lossesANS: A PTS: 120. Which of the following is a fixed percentage of the value of an imported product as it enters thecountry?a. Specific tariffb. Ad valorem tariffc. Nominal tariffd. Effective tariffANS: B PTS: 121. A tax of 20 cents per unit of imported cheese would be an example of:a. Compound tariffb. Effective tariffc. Ad valorem tariffd. Specific tariffANS: D PTS: 122. A tax of 15 percent per imported item would be an example of:a. Ad valorem tariffb. Specific tariffc. Effective tariffd. Compound tariffANS: A PTS: 123. Which type of tariff is not used by the American government?a. Import tariffb. Export tariffc. Specific tariffd. Ad valorem tariffANS: B PTS: 124. Which trade policy results in the government levying a "two-tier" tariff on imported goods?a. Tariff quotab. Nominal tariffc. Effective tariffd. Revenue tariffANS: A PTS: 125. If we consider the impact on both consumers and producers, then protection of the steel industryis:a. In the interest of the United States as a whole, but not in the interest of the state ofPennsylvaniab. In the interest of the United States as a whole and in the interest of the state of Pennsylvaniac. Not in the interest of the United States as a whole, but it might be in the interest of the stateof Pennsylvaniad. Not in the interest of the United States as a whole, nor in the interest of the state ofPennsylvaniaANS: C PTS: 126. If I purchase a stereo from South Korea, I obtain the stereo and South Korea obtains the dollars.But if I purchase a stereo produced in the United States, I obtain the stereo and the dollars remain in America. This line of reasoning is:a. Valid for stereos, but not for most products imported by the United Statesb. Valid for most products imported by the United States, but not for stereosc. Deceptive since Koreans eventually spend the dollars on U.S. goodsd. Deceptive since the dollars spent on a stereo built in the United States eventually wind upoverseasANS: C PTS: 127. The most vocal political pressure for tariffs is generally made by:a. Consumers lobbying for export tariffsb. Consumers lobbying for import tariffsc. Producers lobbying for export tariffsd. Producers lobbying for import tariffsANS: D PTS: 128. If we consider the interests of both consumers and producers, then a policy of tariff reduction inthe U.S. auto industry is:a. In the interest of the United States as a whole, but not in the interest of auto-producing statesb. In the interest of the United States as a whole, and in the interest of auto-producing statesc. Not in the interest of the United States as a whole, nor in the interest of auto-producingstatesd. Not in the interest of the United States as a whole, but is in the interest of auto-producingstatesANS: A PTS: 129. Free traders point out that:a. There is usually an efficiency gain from having tariffsb. There is usually an efficiency loss from having tariffsc. Producers lose from tariffs at the expense of consumersd. Producers lose from tariffs at the expense of the governmentANS: B PTS: 130. A decrease in the import tariff will result in:a. An increase in imports but a decrease in domestic productionb. A decrease in imports but an increase in domestic productionc. An increase in price but a decrease in quantity purchasedd. A decrease in price and a decrease in quantity purchasedANS: A PTS: 1Figure 4.1 illustrates the demand and supply schedules for pocket calculators in Mexico, a "small" nation that is unable to affect the world price.Figure 4.1. Import Tariff Levied by a "Small" Country31. Consider Figure 4.1. In the absence of trade, Mexico produces and consumes:a. 10 calculatorsb. 40 calculatorsc. 60 calculatorsd. 80 calculatorsANS: C PTS: 132. Consider Figure 4.1. In the absence of trade, Mexico's producer surplus and consumer surplusrespectively equal:a. $120, $240b. $180, $180c. $180, $320d. $240, $240ANS: B PTS: 133. Consider Figure 4.1. With free trade, Mexico imports:a. 40 calculatorsb. 60 calculatorsc. 80 calculatorsd. 100 calculatorsANS: D PTS: 134. Consider Figure 4.1. With free trade, the total value of Mexico's imports equal:a. $220b. $260c. $290d. $300ANS: D PTS: 135. Consider Figure 4.1. With free trade, Mexico's producer surplus and consumer surplusrespectively equal:a. $5, $605b. $25, $380c. $45, $250d. $85, $195ANS: A PTS: 136. Consider Figure 4.1. With a per-unit tariff of $3, the quantity of imports decreases to:a. 20 calculatorsb. 40 calculatorsc. 50 calculatorsd. 70 calculatorsANS: B PTS: 137. According to Figure 4.1, the loss in Mexican consumer surplus due to the tariff equals:a. $225b. $265c. $285d. $325ANS: C PTS: 138. According to Figure 4.1, the tariff results in the Mexican government collecting:a. $100b. $120c. $140d. $160ANS: B PTS: 139. According to Figure 4.1, Mexican manufacturers gain ____ because of the tariff.a. $75b. $85c. $95d. $105ANS: A PTS: 140. According to Figure 4.1, the deadweight cost of the tariff totals:a. $60b. $70c. $80d. $90ANS: D PTS: 141. Consider Figure 4.1. The tariff would be prohibitive (i.e., eliminate imports) if it equaled:a. $2b. $3c. $4d. $5ANS: D PTS: 1Assume the United States is a large consumer of steel that is able to influence the world price. Its demand and supply schedules are respectively denoted by D U.S. and S U.S. in Figure 4.2. Theoverall (United States plus world) supply schedule of steel is denoted by S U.S.+W.Figure 4.2. Import Tariff Levied by a "Large" Country42. Consider Figure 4.2. With free trade, the United States achieves market equilibrium at a price of$____. At this price, ____ tons of steel are produced by U.S. firms, ____ tons are bought by U.S.buyers, and ____ tons are imported.a. $450, 5 tons, 60 tons, 55 tonsb. $475, 10 tons, 50 tons, 40 tonsc. $525, 5 tons, 60 tons, 55 tonsd. $630, 30 tons, 30 tons, 0 tonsANS: B PTS: 143. Consider Figure 4.2. Suppose the United States imposes a tariff of $100 on each ton of steelimported. With the tariff, the price of steel rises to $____ and imports fall to ____ tons.a. $550, 20 tonsb. $550, 30 tonsc. $575, 20 tonsd. $575, 30 tonsANS: A PTS: 144. Consider Figure 4.2. Of the $100 tariff, $____ is passed on to the U.S. consumer via a higherprice, while $____ is borne by the foreign exporter; the U.S. terms of trade:a. $25, $75, improveb. $25, $75, worsenc. $75, $25, improved. $75, $25, worsenANS: C PTS: 145. Referring to Figure 4.2, the tariff's deadweight welfare loss to the United States totals:a. $450b. $550c. $650d. $750ANS: D PTS: 146. According to Figure 4.2, the tariff's terms-of-trade effect equals:a. $300b. $400c. $500d. $600ANS: C PTS: 147. According to Figure 4.2, the tariff leads to the overall welfare of the United States:a. Rising by $250b. Rising by $500c. Falling by $250d. Falling by $500ANS: C PTS: 148. Suppose that the production of $500,000 worth of steel in the United States requires $100,000worth of iron ore. The U.S. nominal tariff rates for importing these goods are 15 percent for steel and 5 percent for iron ore. Given this information, the effective rate of protection for the U.S.steel industry is approximately:a. 6 percentb. 12 percentc. 18 percentd. 24 percentANS: C PTS: 149. Suppose that the production of a $30,000 automobile in Canada requires $10,000 worth of steel.The Canadian nominal tariff rates for importing these goods are 25 percent for automobiles and10 percent for steel. Given this information, the effective rate of protection for the Canadianautomobile industry is approximately:a. 15 percentb. 32 percentc. 48 percentd. 67 percentANS: B PTS: 1Exhibit 4.1Assume that the United States imports automobiles from South Korea at a price of $20,000 per vehicle and that these vehicles are subject to an import tariff of 20 percent. Also assume that U.S.components are used in the vehicles assembled by South Korea and that these components have a value of $10,000.50. Refer to Exhibit 4.1. In the absence of the Offshore Assembly Provision of U.S. tariff policy, theprice of an imported vehicle to the U.S. consumer after the tariff has been levied is:a. $22,000b. $23,000c. $24,000d. $25,000ANS: C PTS: 151. Refer to Exhibit 4.1. Under the Offshore Assembly Provision of U.S. tariff policy, the price of animported vehicle to the U.S. consumer after the tariff has been levied is:a. $22,000b. $23,000c. $24,000d. $25,000ANS: A PTS: 152. Suppose an importer of steel is required to pay a tariff of $20 per ton plus 5 percent of the valueof steel. This is an example of a (an):a. Specific tariffb. Ad valorem tariffc. Compound tariffd. Tariff quotaANS: C PTS: 153. A compound tariff is a combination of a (an):a. Tariff quota and a two-tier tariffb. Revenue tariff and a protective tariffc. Import tariff and an export tariffd. Specific tariff and an ad valorem tariffANS: D PTS: 1Table 4.1. Production Costs and Prices of Imported and Domestic VCRsImported VCRs Domestic VCRs Component parts $150 Imported component parts $150 Assembly cost/profit 50 Assembly cost 50 Nominal tariff 25 Profit 25 Import price Domestic priceafter tariff 225 after tariff 22554. Consider Table 4.1. Prior to the tariff, the total price of domestically-produced VCRs is:a. $150b. $200c. $225d. $250ANS: B PTS: 155. Consider Table 4.1. Prior to the tariff, the total price of imported VCRs is:a. $150b. $200c. $225d. $235ANS: B PTS: 156. Consider Table 4.1. The nominal tariff rate on imported VCRs equals:a. 11.1 percentb. 12.5 percentc. 16.7 percentd. 50.0 percentANS: B PTS: 157. Consider Table 4.1. Prior to the tariff, domestic value added equals:a. $25b. $50c. $75d. $100ANS: B PTS: 158. Consider Table 4.1. After the tariff, domestic value added equals:a. $25b. $50c. $75d. $100ANS: C PTS: 159. Consider Table 4.1. The effective tariff rate equals:a. 11.1 percentb. 16.7 percentc. 50.0 percentd. 100.0 percentANS: C PTS: 160. If the domestic value added before an import tariff for a product is $500 and the domestic valueadded after the tariff is $550, the effective rate of protection is:a. 5 percentb. 8 percentc. 10 percentd. 15 percentANS: C PTS: 161. When a tariff on imported inputs exceeds that on the finished good,a. The nominal tariff rate on the finished product would tend to overstate its protective effectb. The nominal tariff rate would tend to understate it's protective effectc. It is impossible to determine the protective effect of a tariffd. Tariff escalation occursANS: A PTS: 162. The offshore assembly provision in the U.S.a. Provides favorable treatment to U.S. trading partnersb. Discriminates against primary product importersc. Provides favorable treatment to products assembled abroad from U.S. manufacturedcomponentsd. Hurts the U.S. consumerANS: C PTS: 163. Arguments for U.S. trade restrictions include all of the following excepta. Job protectionb. Infant industry supportc. Maintenance of domestic living standardd. Improving incomes for developing countriesANS: D PTS: 164. For the United States, a foreign trade zone (FTZ) isa. A site within the United Statesb. A site outside the United Statesc. Always located in poorer developing countriesd. Is used to discourage tradeANS: A PTS: 1TRUE/FALSE1. To protect domestic producers from foreign competition, the U.S. government levies both importtariffs and export tariffs.ANS: F PTS: 12. With a compound tariff, a domestic importer of an automobile might be required to pay a duty of$200 plus 4 percent of the value of the automobile.ANS: T PTS: 13. With a specific tariff, the degree of protection afforded domestic producers varies directly withchanges in import prices.ANS: F PTS: 14. During a business recession, when cheaper products are purchased, a specific tariff providesdomestic producers a greater amount of protection against import-competing goods.ANS: T PTS: 15. A ad valorem tariff provides domestic producers a declining degree of protection againstimport-competing goods during periods of changing prices.ANS: F PTS: 16. With a compound duty, its "specific" portion neutralizes the cost disadvantage of domesticmanufacturers that results from tariff protection granted to domestic suppliers of raw materials, and the "ad valorem" portion of the duty grants protection to the finished-goods industry.ANS: T PTS: 17. The nominal tariff rate signifies the total increase in domestic productive activities compared towhat would occur under free-trade conditions.ANS: F PTS: 18. When material inputs enter a country at a very low duty while the final imported product isprotected by a high duty, the result tends to be a high rate of protection for domestic producers of the final product.ANS: T PTS: 19. According to the tariff escalation effect, industrial countries apply low tariffs to imports offinished goods and high tariffs to imports of raw materials.ANS: F PTS: 110. Under the Offshore Assembly Provision of U.S. tariff policy, U.S. import duties apply only to thevalue added in the foreign assembly process, provided that U.S.-made components are used by overseas companies in their assembly operations.ANS: T PTS: 111. Bonded warehouses and foreign trade zones have the effect of allowing domestic importers topostpone and prorate over time their import duty obligations.ANS: T PTS: 112. A nation whose imports constitute a very small portion of the world market supply is a price taker,facing a constant world price for its import commodity.ANS: T PTS: 113. Graphically, consumer surplus is represented by the area above the demand curve and below theproduct's market price.ANS: F PTS: 114. Producer surplus is the revenue producers receive over and above the minimum necessary forproduction.ANS: T PTS: 115. For a "small" country, a tariff raises the domestic price of an imported product by the full amountof the duty.ANS: T PTS: 116. Although an import tariff provides the domestic government additional tax revenue, it benefitsdomestic consumers at the expense of domestic producers.ANS: F PTS: 117. An import tariff reduces the welfare of a "small" country by an amount equal to the redistributioneffect plus the revenue effect.ANS: F PTS: 118. The deadweight losses of an import tariff consist of the protection effect plus the consumptioneffect.ANS: T PTS: 119. The redistribution effect is the transfer of producer surplus to domestic consumers of theimport-competing product.ANS: F PTS: 120. As long as it is assumed that a nation accounts for a negligible portion of international trade, itslevying an import tariff necessarily increases its overall welfare.ANS: F PTS: 121. Changes in a "large" country's economic conditions or trade policies can affect the terms atwhich it trades with other countries.ANS: T PTS: 122. A "large" country, that levies a tariff on imports, cannot improve the terms at which it trades withother countries.ANS: F PTS: 123. For a "large" country, a tariff on an imported product may be partially absorbed by the domesticconsumer via a higher purchase price and partially absorbed by the foreign producer via a lower export price.ANS: T PTS: 124. If a "large" country levies a tariff on an imported good, its overall welfare increases if themonetary value of the tariff's consumption effect plus protective effect exceeds the monetary value of the terms-of-trade effect.ANS: F PTS: 125. If a "small" country levies a tariff on an imported good, its overall welfare increases if themonetary value of the tariff's consumption effect plus protective effect is less than the monetary value of the terms-of-trade effect.ANS: F PTS: 126. A tariff on steel imports tends to improve the competitiveness of domestic automobilecompanies.ANS: F PTS: 127. If a tariff reduces the quantity of Japanese autos imported by the United States, over time itreduces the ability of Japan to import goods from the United States.ANS: T PTS: 128. A compound tariff permits a specified amount of goods to be imported at one tariff rate while anyimports above this amount are subjected to a higher tariff rate.ANS: F PTS: 129. A tariff can be thought of as a tax on imported goods.ANS: T PTS: 130. Although tariffs on imported steel may lead to job gains for domestic steel workers, they can leadto job losses for domestic auto workers.ANS: T PTS: 131. Relatively low wages in Mexico make it impossible for U.S. manufacturers of labor-intensivegoods to compete against Mexican manufacturers.ANS: F PTS: 132. According to the infant-industry argument, temporary tariff protection granted to an infantindustry will help it become competitive in the world market; when internationalcompetitiveness is achieved, the tariff should be removed.ANS: T PTS: 1Exhibit 4.2In the absence of international trade, assume that the equilibrium price and quantity of motorcycles in Canada is $14,000 and 10 units respectively. Assuming that Canada is a small country that is unable to affect the world price of motorcycles, suppose its market is opened to international trade. As a result, the price of motorcycles falls to $12,000 and the total quantity demanded rises to 14 units; out of this total, 6 units are produced in Canada while 8 units are imported. Now assume that the Canadian government levies an import tariff of $1,000 on motorcycles.33. Refer to Exhibit 4.2. As a result of the tariff, the price of imported motorcycles equals $13,000and imports total 4 cycles.ANS: T PTS: 134. Refer to Exhibit 4.2. The tariff leads to an increase in Canadian consumer surplus totaling$11,000.ANS: F PTS: 135. Refer to Exhibit 4.2. The tariff's redistribution effect equals $7,000.ANS: T PTS: 136. Refer to Exhibit 4.2. The tariff's revenue effect equals $6,000.ANS: F PTS: 137. Refer to Exhibit 4.2. All of the import tariff is shifted to the Canadian consumer via a higher priceof motorcycles.ANS: T PTS: 138. Refer to Exhibit 4.2. The tariff leads to a deadweight welfare loss for Canada totaling $1,000.ANS: F PTS: 139. Unlike a specific tariff, an ad valorem tariff differentiates between commodities with differentvalues.ANS: T PTS: 140. A limitation of a specific tariff is that it provides a constant level of protection for domesticcommodities regardless of fluctuations in their prices over time.ANS: F PTS: 141. A tariff quota is a combination of a specific tariff and an ad valorem tariff.ANS: F PTS: 142. A specific tariff is expressed as a fixed percentage of the total value of an imported product.ANS: F PTS: 143. The protective effect of a tariff occurs to the extent that less efficient domestic production issubstituted for more efficient foreign production.ANS: T PTS: 144. A tariff can increase the welfare of a "large" levying country if the favorable terms-of-tradeeffect more than offsets the unfavorable protective effect and consumption effect.ANS: T PTS: 145. If the world price of steel is $600 per ton, a specific tariff of $120 per ton is equivalent to an advalorem tariff of 25 percent.ANS: F PTS: 146. An import tariff will worsen the terms of trade for a "small" country but improve the terms oftrade for a "large" country.ANS: F PTS: 147. Suppose that the tariff on imported steel is 40 percent, the tariff on imported iron ore is 20 percent,and 30 percent of the cost of producing a ton of steel consists of the iron ore it contains. The effective rate of protection of steel is approximately 49 percent.ANS: T PTS: 1。
克鲁格曼《国际经济学》第八版课后答案(英文)-Ch05
Chapter 5The Standard Trade ModelChapter OrganizationA Standard Model of a Trading EconomyProduction Possibilities and Relative SupplyRelative Prices and DemandThe Welfare Effect of Changes in the Terms of TradeDetermining Relative PricesEconomic Growth: A Shift of the RS CurveGrowth and the Production Possibility FrontierRelative Supply and the Terms of TradeInternational Effects of GrowthCase Study: Has the Growth of Newly Industrializing Countries Hurt Advanced Nations? International Transfers of Income: Shifting the RD CurveThe Transfer ProblemEffects of a Transfer on the Terms of TradePresumptions about the Terms of Trade Effects of TransfersCase Study: The Transfer Problem and the Asian CrisisTariffs and Export Subsidies: Simultaneous Shifts in RS and RDRelative Demand and Supply Effects of a TariffEffects of an Export SubsidyImplications of Terms of Trade Effects: Who Gains and Who Loses?SummaryAppendix: Representing International Equilibrium with Offer CurvesDeriving a Country’s Offer CurveInternational EquilibriumChapter 5 The Standard Trade Model 17Chapter OverviewPrevious chapters have highlighted specific sources of comparative advantage which give rise to international trade. This chapter presents a general model which admits previous models as special cases. This “standard trade model” is the workhorse of international trade theory and can be used to address a wide range of issues. Some of these issues, such as the welfare and distributional effects of economic growth, transfers between nations, and tariffs and subsidies on traded goods are considered in this chapter. The standard trade model is based upon four relationships. First, an economy will produce at the point where the production possibilities curve is tangent to the relative price line (called the isovalue line). Second, indifference curves describe the tastes of an economy, and the consumption point for that economy is found at the tangency of the budget line and the highest indifference curve. These two relationships yield the familiar general equilibrium trade diagram for a small economy (one which takes as given the terms of trade), where the consumption point and production point are the tangencies of the isovalue line with the highest indifference curve and the production possibilities frontier, respectively.You may want to work with this standard diagram to demonstrate a number of basic points. First, an autarkic economy must produce what it consumes, which determines the equilibrium price ratio; and second, opening an economy to trade shifts the price ratio line and unambiguously increases welfare. Third, an improvement in the terms of trade increases welfare in the economy. Fourth, it is straightforward to move from a small country analysis to a two country analysis by introducing a structure of world relative demand and supply curves which determine relative prices.These relationships can be used in conjunction with the Rybczynski and the Stolper-Samuelson Theorems from the previous chapter to address a range of issues. For example, you can consider whether the dramatic economic growth of countries like Japan and Korea has helped or hurt the United States as a whole, and also identify the classes of individuals within the United States who have been hurt by the particular growth biases of these countries. In teaching these points, it might be interesting and useful to relate them to current events. For example, you can lead a class discussion of the implications for the United States of the provision of forms of technical and economic assistance to the emerging economies around the world or the ways in which a world recession can lead to a fall in demand for U.S. export goods.The example provided in the text considers the popular arguments in the media that growth in Japan or Korea hurts the United States. The analysis presented in this chapter demonstrates that the bias of growth is important in determining welfare effects rather than the country in which growth occurs. The existence of biased growth, and the possibility of immiserizing growth is discussed. The Relative Supply (RS) and Relative Demand (RD) curves illustrate the effect of biased growth on the terms of trade. The new terms of trade line can be used with the general equilibrium analysis to find the welfare effects of growth. A general principle which emerges is that a country which experiences export-biased growth will have a deterioration in its terms of trade, while a country which experiences import-biased growth has an improvement in its terms of trade. A case study points out that growth in the rest of the world has made other countries more like the United States. This import-biased growth has worsened the terms of trade for the United States. The second issue addressed in the context of the standard trade model is the effect of international transfers. The salient point here is the direction, if any, in which the relative demand curve shifts in response to the redistribution of income from a transfer. A transfer worsens the donor’s ter ms of trade if it has a higher marginal propensity to consume its export good than the recipient. The presence of non-traded goods tends to reinforce the deterioration of terms of trade for the donor country. The case study attendant to this issue involves the deterioration of many Asian countries’ terms of trade due to the large capital withdrawals at the end of the 1990s.18 Krugman/Obstfeld •International Economics: Theory and Policy, Eighth EditionThe third area to which the standard trade model is applied are the effects of tariffs and export subsidies on welfare and terms of trade. The analysis proceeds by recognizing that tariffs or subsidies shift both the relative supply and relative demand curves. A tariff on imports improves the terms of trade, expressed in external prices, while a subsidy on exports worsens terms of trade. The size of the effect depends upon the size of the country in the world. Tariffs and subsidies also impose distortionary costs upon the economy. Thus, if a country is large enough, there may be an optimum, non-zero tariff. Export subsidies, however, only impose costs upon an economy. Intranationally, tariffs aid import-competing sectors and hurt export sectors while subsidies have the opposite effect. An appendix presents offer curve diagrams and explains this mode of analysis.Answers to Textbook Problems1.Note how welfare in both countries increases as the two countries move from productionpatterns governed by domestic prices (dashed line) to production patterns governed by worldprices (straight line).2.3. An increase in the terms of trade increases welfare when the PPF is right-angled. The production pointis the corner of the PPF. The consumption point is the tangency of the relative price line and the highest indifference curve. An improvement in the terms of trade rotates the relative price line about its intercept with the PPF rectangle (since there is no substitution of immobile factors, the production point stays fixed). The economy can then reach a higher indifference curve. Intuitively, although there is no supply response, the economy receives more for the exports it supplies and pays less for the imports it purchases.Chapter 5 The Standard Trade Model 19 4. The difference from the standard diagram is that the indifference curves are right angles rather thansmooth curves. Here, a terms of trade increase enables an economy to move to a higher indifference curve. The income expansion path for this economy is a ray from the origin. A terms of tradeimprovement moves the consumption point further out along the ray.5. The terms of trade of Japan, a manufactures (M) exporter and a raw materials (R) importer, is the worldrelative price of manufactures in terms of raw materials (p M/p R). The terms of trade change can be determined by the shifts in the world relative supply and demand (manufactures relative to raw materials) curves. Note that in the following answers, world relative supply (RS) and relative demand (RD) are always M relative to R. We consider all countries to be large, such that changes affect the world relative price.a. Oil supply disruption from the Middle East decreases the supply of raw materials, which increasesthe world relative supply. The world relative supply curve shifts out, decreasing the world relative price of manufactured goods and deteriorating Japan’s terms of t rade.b. Korea’s increased automobile production increases the supply of manufactures, which increasesthe world RS. The world relative supply curve shifts out, decreasing the world relative price ofmanufactured goods and deteriorating Japan’s terms of tr ade.c. U.S. development of a substitute for fossil fuel decreases the demand for raw materials. Thisincreases world RD, and the world relative demand curve shifts out, increasing the world relative price of manufactured goods and improving Japan’s terms of trade. This occurs even if no fusion reactors are installed in Japan since world demand for raw materials falls.d. A harvest failure in Russia decreases the supply of raw materials, which increases the world RS.The world relative supply curve shifts o ut. Also, Russia’s demand for manufactures decreases,which reduces world demand so that the world relative demand curve shifts in. These forcesdecrease the world relative price of manufactured goods and deteriorate Japan’s terms of trade.e. A reduction in Japan’s tariff on raw materials will raise its internal relative price of manufactures.This price change will increase Japan’s RS and decrease Japan’s RD, which increases the worldRS and decreases the world RD (i.e., world RS shifts out and world RD shifts in). The worldrelative price of manufactures declines and Japan’s terms of trade deteriorate.6. The declining price of services relative to manufactured goods shifts the isovalue line clockwise sothat relatively fewer services and more manufactured goods are produced in the United States, thus reducing U.S. welfare.20 Krugman/Obstfeld •International Economics: Theory and Policy, Eighth Edition7. These results acknowledge the biased growth which occurs when there is an increase in one factor ofproduction. An increase in the capital stock of either country favors production of Good X, while an increase in the labor supply favors production of Good Y. Also, recognize the Heckscher-Ohlin result that an economy will export that good which uses intensively the factor which that economy has in relative abundance. Country A exports Good X to Country B and imports Good Y from Country B.The possibility of immiserizing growth makes the welfare effects of a terms of trade improvement due to export-biased growth ambiguous. Import-biased growth unambiguously improves welfare for the growing country.a. A’s terms of trade worsen, A’s welfare may increase or, less likely, decrease, and B’s welfareincreases.b. A’s terms of trade improve, A’s welfare increases and B’s welfare decreases.c. B’s terms of trade improve, B’s welfare increases and A’s welfare decreases.d. B’s terms of trade worsen, B’s welfare may increase or, less likely, decrease, and A’s welfareincreases.8. Immiserizing growth occurs when the welfare deteriorating effects of a worsening in an economy’sterms of trade swamp the welfare improving effects of growth. For this to occur, an economy must undergo very biased growth, and the economy must be a large enough actor in the world economy such that its actions spill over to adversely alter the terms of trade to a large degree. This combination of events is unlikely to occur in practice.9. India opening should be good for the U.S. if it reduces the relative price of goods that China sends tothe U.S. and hence increases the relative price of goods that the U.S. exports. Obviously, any sector in the U.S. hurt by trade with China would be hurt again by India, but on net, the U.S. wins. Note that here we are making different assumptions about what India produces and what is tradable than we are in Question #6. Here we are assuming India exports products the U.S. currently imports and China currently exports. China will lose by having the relative price of its export good driven down by the increased production in India.10. Aid which must be spent on exports increases the demand for those export goods and raises their pricerelative to other goods. There will be a terms of trade deterioration for the recipient country. This can be viewed as a polar case of the effect of a transfer on the terms of trade. Here, the marginal propensity to consume the export good by the recipient country is 1. The donor benefits from a terms of trade improvement. As with immiserizing growth, it is theoretically possible that a transfer actuallyworsens the welfare of the recipient.11. When a country subsidizes its exports, the world relative supply and relative demand schedules shiftsuch that the terms of trade for the country worsen. A countervailing import tariff in a second country exacerbates this effect, moving the terms of trade even further against the first country. The firstcountry is worse off both because of the deterioration of the terms of trade and the distortionsintroduced by the new internal relative prices. The second country definitely gains from the firstcountry’s export su bsidy, and may gain further from its own tariff. If the second country retaliated with an export subsidy, then this would offset the initial improvement in the terms of trade; the“retaliatory” export subsidy definitely helps the first country and hurts th e second.。
国际经济学英文版上册（第八版）章节练习第五章
国际经济学英⽂版上册（第⼋版）章节练习第五章International Economics, 8e (Krugman)Chapter 5 The Standard Trade Model1) The concept "terms of trade" meansA) the amount of exports sold by a country.B) the price conditions bargained for in international markets.C) the price of a country's exports divided by the price of its imports.D) the quantities of imports received in free trade.E) None of the above.Answer: C2) A country cannot produce a mix of products with a higher value than whereA) the isovalue line intersects the production possibility frontier.B) the isovalue line is tangent to the production possibility frontier.C) the isovalue line is above the production possibility frontier.D) the isovalue line is below the production possibility frontier.E) the isovalue line is tangent with the indifference curve.Answer: B3) Tastes of individuals are represented byA) the production possibility frontier.B) the isovalue line.C) the indifference curve.D) the production function.E) None of the above.Answer: C4) If P C/P F were to increase in the international marketplace, thenA) all countries would be better off.B) the terms of trade of cloth exporters improve.C) the terms of trade of food exporters improve.D) the terms of trade of all countries improve.E) None of the above.Answer: B5) If P C/P F were to increase,A) the cloth exporter would increase the quantity of cloth exports.B) the cloth exporter would increase the quantity of cloth produced.C) the food exporter would increase the quantity of food exports.D) Both A and C.E) None of the above.Answer: B6) If a small country were to levy a tariff on its imports then this wouldA) have no effect on that country's economic welfare.B) increase the country's economic welfare.C) decrease the country's economic welfare.D) change the terms of trade.E) None of the above.Answer: C7) Suppose now that Home experiences growth strongly biased toward its export, cloth,A) this will tend to worsen Home's terms of trade.B) this will tend to improve Home's terms of trade.C) this will tend to worsen Foreign's terms of trade.D) this will have no effect on Foreign's terms of trade.E) None of the above.Answer: A8) Suppose that Home is a "small country," and it experiences growth strongly biased toward its export, clothA) this will tend to worsen Home's terms of tradeB) this will tend to improve Home's terms of tradeC) this will tend to worsen Foreign's terms of tradeD) this will have no effect on Foreign's terms of tradeE) None of the aboveAnswer: D9) When the production possibility frontier shifts out relatively more in one direction, we haveA) biased growth.B) unbiased growth.C) immiserizing growth.D) balanced growth.E) imbalanced growth.Answer: D10) Export-biased growth in Country H willA) improve the terms of trade of Country H.B) trigger anti-bias regulations of the WTO.C) worsen the terms of trade of Country F (the trade partner).D) improve the terms of trade of Country F.E) decrease economic welfare in Country H.Answer: D11) If the poor USAID recipient countries have a higher marginal propensity to consume each and every productthan does the United States, then such aid willA) worsen the U.S. terms of trade.B) improve the U.S. terms of trade.C) leave the world terms of trade unaffected.D) worsen the terms of trade of both donor and recipient countries.E) None of the above.Answer: B12) If, beginning from a free trade equilibrium, the (net barter) terms of trade improve for a country, then it willA) increase production of its import competing good.B) increase consumption of its export good.C) increase the quantity of its imports.D) experience an export-biased shift in its production possibility frontier.E) None of the above.Answer: C13) After WWI, Germany was forced to make large reparations-transfers of real income- to France. If themarginal propensity to consume was equal in both countries, and if France's demand was biased toward food (relative to Germany's demand pattern) then we would expect to findA) the world's relative price for food remains unchanged.B) the world's relative price for food increase.C) the world's relative price for food decrease.D) the world relative price for both food and non-food rise.E) None of the above.Answer: B14) During the 19th Century, economic growth of the major trading countries was biased toward manufacturesand away from food. The less developed countries of that time were net exporters of food. From thisinformation, we would expect to have observedA) falling terms of trade for the less developed countries.B) improving (rising) terms of trade for the less developed countries.C) no change at all in the terms of trade of the less developed countries.D) a decrease in the relative price of food.E) None of the above.Answer: B15) Immiserizing growth could occur toA) a poor country experiencing export-biased economic growth.B) a poor country experiencing import-biased economic growth.C) a poor country experiencing growth in its non-traded sector.D) a poor country experiencing capital-intensive biased growth.E) None of the above.Answer: A16) A large country experiencing import-biased economic growth will tend to experienceA) positive terms of trade.B) deteriorating terms of trade.C) improving terms of trade.D) immiserizing terms of trade.E) None of the above.Answer: C17) If a there are no international loans or capital flows, then if a country's terms of trade improve, we wouldfind thatA) the value of its exports exceeds the value of its imports.B) the value of its exports becomes less than that of its imports.C) the value of its exports exactly equals that of its imports.D) the quantity of its exports equals that of its imports.E) None of the above.Answer: C18) If the U.S. Agency for International Development transfers funds to poor countries in Sub-Saharan Africa,the conventional assumption, following Keynes' analysis would presume that this would tend toA) worsen the U.S. terms of trade.B) improve the U.S. terms of trade.C) worsen the terms of trade of the African aid recipients.D) improve the terms of trade of the African aid recipients.E) None of the above.Answer: A19) If a country's growth is biased in favor of its import, this should unequivocally improve its terms of tradeand its economic welfare. Discuss.Answer: Suppose Japan experiences economic growth biased in favor of its import substitutes. For example, assume that Japan imports components and exports final goods, but that it experiences a major growthin its components manufacture sector. Since Japan is internationally a large country in these markets,this would tend to hurt its component supplier's terms of trade (and help Japan's). However, such abias in economic growth may tend to lessen the volume of international trade. At an extreme, Japanmay become an exporter of components and an importer of final goods. If the result is a lessening ofspecialization and of the volume of trade, then this effect will lower Japan's welfare associated withgains from trade. If an actual change in the pattern of comparative advantage occurs (a possibility) thismay cause dynamic dislocations whose harm overpowers static gains for a relatively long period oftime.20) At the conclusion of World War I, Germany, as a punishment, was obliged to make a large transfer to Francein the form of reparations. Is it possible that the actual reparations may have improved Germany's economic welfare? Answer: Such a result is not likely. However, theoretically, if France's income elasticity of demand for Germany's exports was higher than Germany's income elasticity of demand for its own exportable,then the real income transfer associated with these reparations may have improved Germany's termsof trade, and improved its balance of payments, thus helping Germany in manner unanticipated in theTreaty of Verssaille. Explain.21) If the U.S. (a large country) imposes a tariff on its imported good, this will tend toA) have no effect on terms of trade.B) improve the terms of trade of all countries.C) improve the terms of trade of the United States.D) cause a deterioration of U.S. terms of trade.E) raise the world price of the good imported by the United States.Answer: C22) If Slovenia is a small country in world trade terms, then if it imposes a large series of tariffs on many of itsimports, this wouldA) have no effect on its terms of trade.B) improve its terms of trade.C) deteriorate its terms of trade.D) decrease its marginal propensity to consume.E) None of the above.Answer: A23) If Slovenia were a large country in world trade, then if it instituted a large set of subsidies for its exports, thismustA) have no effect on its terms of trade.B) improve its terms of trade.C) deteriorate its terms of trade.D) decrease its marginal propensity to consume.E) None of the above.Answer: C24) If Slovenia were a large country in world trade, then if it instituted a large set of subsidies for its exports, thismustA) cause retaliation on the part of its trade partners.B) harm Slovenia's real income.C) improve Slovenia's real income.D) improve the real income of its trade partners.E) None of the above.Answer: D25) An export subsidy has the opposite effect on terms of trade to the effect of an import tariff. Domestically atariff will raise the price of the import good, deteriorating the domestic terms of trade. A production subsidy for the export product will lower the local price of the export good, lowering the domestic terms of trade for the country. Hence the export subsidy and the import tariff have the same effect. This analysis seems tocontradict the first sentence in this paragraph. Discuss this paradox.Answer: While this (Lerner) equivalence may well occur domestically, internationally the tariff will improve a country's terms of trade. An export subsidy on the other hand will in fact lower the international priceof the (now readily available) export good, hence hurting a country's terms of trade.26) Suppose, as a result of various dynamic factors associated with exposure to international competition,Albania's economy grew, and is now represented by the rightmost production possibility frontier in the figure above. If its point of production with trade was point c, would you consider this growth to beexport-biased or import biased? If Albania were a large country with respect to the world trade of A and B, how would this growth affect Albania's terms of trade? Its real income?Answer: If point c is the production point with trade, then Albania has a comparative advantage in good B.Therefore, from the shape of the new production possibility frontier (as compared to the original one),this is clearly an export-biased growth. This ceteris paribus would tend to worsen Albania's terms oftrade. The terms of trade effect would, again ceteris paribus, worsen its real income. However, thegrowth itself acts in the opposite direction.27) Suppose, as a result of various dynamic factors associated with exposure to international competition,Albania's economy grew, and is now represented by the rightmost production possibility frontier in the figure above. If its point of production with trade was point b, would you consider this growth to beexport-biased or import biased? If Albania were a large country with respect to the world trade of A and B, how would this growth affect Albania's terms of trade? Its real income? What if Albania were a small country?Answer: If the production with trade point was point b, then the observed growth is a case of import-biased growth, and would improve Albania's terms of trade. If Albania were a small country, the world'sterms of trade would not change at all. In such a case, economic growth (with no induced change inincome distributions) would always increase its real income.。
国际经济学英文版上册(第八版)章节练习第五章
精选文档International Economics, 8e (Krugman)Chapter 5The Standard Trade Model1)The concept "terms of trade" meansA)the amount of exports sold by a country.B)the price conditions bargained for in international markets.C)the price of a country's exports divided by the price of its imports.D)the quantities of imports received in free trade.E)None of the above.Answer: C2)A country cannot produce a mix of products with a higher value than whereA)the isovalue line intersects the production possibility frontier.B)the isovalue line is tangent to the production possibility frontier.C)the isovalue line is above the production possibility frontier.D)the isovalue line is below the production possibility frontier.E)the isovalue line is tangent with the indifference curve.Answer: B3)Tastes of individuals are represented byA)the production possibility frontier.B)the isovalue line.C)the indifference curve.D)the production function.E)None of the above.Answer: C4)If P C /P F were to increase in the international marketplace, thenA)all countries would be better off.B)the terms of trade of cloth exporters improve.C)the terms of trade of food exporters improve.D)the terms of trade of all countries improve.E)None of the above.Answer: B5)If P C /P F were to increase,A)the cloth exporter would increase the quantity of cloth exports.B)the cloth exporter would increase the quantity of cloth produced.C)the food exporter would increase the quantity of food exports.D)Both A and C.E)None of the above.Answer: B精选文档6)If a small country were to levy a tariff on its imports then this wouldA)have no effect on that country's economic welfare.B)increase the country's economic welfare.C)decrease the country's economic welfare.D)change the terms of trade.E)None of the above.Answer: C7)Suppose now that Home experiences growth strongly biased toward its export, cloth,A)this will tend to worsen Home's terms of trade.B)this will tend to improve Home's terms of trade.C)this will tend to worsen Foreign's terms of trade.D)this will have no effect on Foreign's terms of trade.E)None of the above.Answer: A8)Suppose that Home is a "small country," and it experiences growth strongly biased toward its export, clothA)this will tend to worsen Home's terms of tradeB)this will tend to improve Home's terms of tradeC)this will tend to worsen Foreign's terms of tradeD)this will have no effect on Foreign's terms of tradeE)None of the aboveAnswer: D9)When the production possibility frontier shifts out relatively more in one direction, we haveA)biased growth.B)unbiased growth.C)immiserizing growth.D)balanced growth.E)imbalanced growth.Answer:D10)Export -biased growth in Country H willA)improve the terms of trade of Country H.B) trigger anti -bias regulations of the WTO.C)worsen the terms of trade of Country F (the trade partner).D)improve the terms of trade of Country F.E)decrease economic welfare in Country H.Answer: D精选文档11) If the poor USAID recipient countries have a higher marginal propensity to consume each and every productthan does the United States, then such aid willA)worsen the U.S. terms of trade.B)improve the U.S. terms of trade.C)leave the world terms of trade unaffected.D)worsen the terms of trade of both donor and recipient countries.E)None of the above.Answer: B12)If, beginning from a free trade equilibrium, the (net barter) terms of trade improve for a country, then it willA)increase production of its import competing good.B)increase consumption of its export good.C)increase the quantity of its imports.D) experience an export -biased shift in its production possibility frontier.E)None of the above.Answer: C13) After WWI, Germany was forced to make large reparations-transfers of real income - to France. If themarginal propensity to consume was equal in both countries, and if France's demand was biasedtoward food (relative to Germany's demand pattern) then we would expect to findA)the world's relative price for food remains unchanged.B)the world's relative price for food increase.C)the world's relative price for food decrease.D) the world relative price for both food and non-food rise.E)None of the above.Answer: B14)During the 19th Century, economic growth of the major trading countries was biased towardmanufactures and away from food. The less developed countries of that time were net exporters of food.From this information, we would expect to have observedA)falling terms of trade for the less developed countries.B)improving (rising) terms of trade for the less developed countries.C)no change at all in the terms of trade of the less developed countries.D) a decrease in the relative price of food.E)None of the above.Answer: B15) Immiserizing growth could occur toA) a poor country experiencing export-biased economic growth.B)a poor country experiencing import-biased economic growth.C)a poor country experiencing growth in its non-traded sector.D) a poor country experiencing capital-intensive biased growth.E)None of the above.Answer: A精选文档16) A large country experiencing import-biased economic growth will tend to experienceA)positive terms of trade.B)deteriorating terms of trade.C)improving terms of trade.D)immiserizing terms of trade.E)None of the above.Answer: C17)If a there are no international loans or capital flows, then if a country's terms of trade improve, we wouldfind thatA)the value of its exports exceeds the value of its imports.B)the value of its exports becomes less than that of its imports.C)the value of its exports exactly equals that of its imports.D)the quantity of its exports equals that of its imports.E)None of the above.Answer: C18) If the U.S. Agency for International Development transfers funds to poor countries in Sub-Saharan Africa,the conventional assumption, following Keynes' analysis would presume that this would tend toA) worsen the U.S. terms of trade.B) improve the U.S. terms of trade.C) worsen the terms of trade of the African aid recipients.D) improve the terms of trade of the African aid recipients.E) None of the above.Answer: A19)If a country's growth is biased in favor of its import, this should unequivocally improve its terms oftrade and its economic welfare. Discuss.Answer: Suppose Japan experiences economic growth biased in favor of its import substitutes. For example, assume that Japan imports components and exports final goods, but that it experiences a majorgrowth in its components manufacture sector. Since Japan is internationally a large country in thesemarkets, this would tend to hurt its component supplier's terms of trade (and help Japan's). However,such a bias in economic growth may tend to lessen the volume of international trade. At an extreme,Japan may become an exporter of components and an importer of final goods. If the result is alessening of specialization and of the volume of trade, then this effect will lower Japan's welfareassociated with gains from trade. If an actual change in the pattern of comparative advantage occurs(a possibility) this may cause dynamic dislocations whose harm overpowers static gains for a relativelylong period of time.20)At the conclusion of World War I, Germany, as a punishment, was obliged to make a large transfer toFrance in the form of reparations. Is it possible that the actual reparations may have improved Germany'seconomic welfare?Answer: Such a result is not likely. However, theoretically, if France's income elasticity of demand forGermany's exports was higher than Germany's income elasticity of demand for its own exportable,then the real income transfer associated with these reparations may have improved Germany's termsof trade, and improved its balance of payments, thus helping Germany in manner unanticipated inthe Treaty of Verssaille. Explain.精选文档21) If the U.S. (a large country) imposes a tariff on its imported good, this will tend toA)have no effect on terms of trade.B)improve the terms of trade of all countries.C)improve the terms of trade of the United States.D)cause a deterioration of U.S. terms of trade.E)raise the world price of the good imported by the United States.Answer: C22)If Slovenia is a small country in world trade terms, then if it imposes a large series of tariffs on many of itsimports, this wouldA)have no effect on its terms of trade.B)improve its terms of trade.C)deteriorate its terms of trade.D)decrease its marginal propensity to consume.E)None of the above.Answer: A23) If Slovenia were a large country in world trade, then if it instituted a large set of subsidies for its exports, thismustA)have no effect on its terms of trade.B)improve its terms of trade.C)deteriorate its terms of trade.D)decrease its marginal propensity to consume.E)None of the above.Answer: C24) If Slovenia were a large country in world trade, then if it instituted a large set of subsidies for its exports, thismustA)cause retaliation on the part of its trade partners.B)harm Slovenia's real income.C)improve Slovenia's real income.D)improve the real income of its trade partners.E)None of the above.Answer: D25)An export subsidy has the opposite effect on terms of trade to the effect of an import tariff. Domestically atariff will raise the price of the import good, deteriorating the domestic terms of trade. A production subsidyfor the export product will lower the local price of the export good, lowering the domestic terms of trade forthe country. Hence the export subsidy and the import tariff have the same effect. This analysis seems tocontradict the first sentence in this paragraph. Discuss this paradox.Answer: While this (Lerner) equivalence may well occur domestically, internationally the tariff will improve a country's terms of trade. An export subsidy on the other hand will in fact lower the internationalprice of the (now readily available) export good, hence hurting a country's terms of trade.精选文档26) Suppose, as a result of various dynamic factors associated with exposure to international competition,Albania's economy grew, and is now represented by the rightmost production possibility frontier inthe figure above. If its point of production with trade was point c, would you consider this growth to beexport -biased or import biased? If Albania were a large country with respect to the world trade of A and B,how would this growth affect Albania's terms of trade? Its real income?Answer: If point c is the production point with trade, then Albania has a comparative advantage in good B.Therefore, from the shape of the new production possibility frontier (as compared to the original one),this is clearly an export-biased growth. This ceteris paribus would tend to worsen Albania's terms oftrade. The terms of trade effect would, again ceteris paribus , worsen its real income. However, the growth itself acts in the opposite direction.27)Suppose, as a result of various dynamic factors associated with exposure to international competition,Albania's economy grew, and is now represented by the rightmost production possibility frontier in thefigure above. If its point of production with trade was point b, would you consider this growth to beexport -biased or import biased? If Albania were a large country with respect to the world trade of A and B,how would this growth affect Albania's terms of trade? Its real income? What if Albania were a small country ?Answer: If the production with trade point was point b, then the observed growth is a case of import-biased growth, and would improve Albania's terms of trade. If Albania were a small country, the world'sterms of trade would not change at all. In such a case, economic growth (with no induced change inincome distributions) would always increase its real income.。
国际经济学英文版（第八版）章节练习第一章
国际经济学英⽂版（第⼋版）章节练习第⼀章International Economics, 8e (Krugman)Chapter 1 Introduction1.1 What Is International Economics About?1) Historians of economic thought often describe ________ written by ________ and published in ________ as the first real exposition of an economic model.A) ”Of the Balance of Trade,” David Hume, 1776B) ”Wealth of Nations,” David Hume, 1758C) ”Wealth of Nations,” Adam Smith, 1758D) ”Wealth of Nations,” Adam Smith, 1776E) ”Of the Balance of Trade,” David Hume, 1758Answer: E2) 2)Ancient theories of international economics from the 18th and 19th Centuries areA) not relevant to current policy analysis.B) are only of moderate relevance in today’s modern international economy.C) are highly relevant in today’s modern international economy.D) are the only theories that actually relevant to modern international economy.E) are not well understood by modern mathematically oriented theorists.Answer: C3) An important insight of international trade theory is that when countries exchange goods and services one with the other itA) is always beneficial to both countries.B) is usually beneficial to both countries.C) is typically beneficial only to the low wage trade partner country.D) is typically harmful to the technologically lagging country.E) tends to create unemployment in both countries.Answer: B4) If there are large disparities in wage levels between countries, thenA) trade is likely to be harmful to both countries.B) trade is likely to be harmful to the country with the high wages.C) trade is likely to be harmful to the country with the low wages.D) trade is likely to be harmful to neither country.E) trade is likely to have no effect on either country.Answer: D5) Who sells what to whomA) has been a major preoccupation of international economics.B) is not a valid concern of international economics.C) is not considered important for government foreign trade policy since such decisions are made in the private competitive market.D) is determined by political rather than economic factors.E) None of the aboveAnswer: A6) The insight that patterns of trade are primarily determined by international differences in labor productivity was first proposed byA) Adam Smith.B) David Hume.C) David Ricardo.D) Eli Heckscher.E) Lerner and Samuelson. Answer: C7) The euro, a common currency for most of the nations of Western Europe, was introducedA) before 1900.B) before 1990.C) before 2000.D) in order to snub the pride of the U.S.E) None of the above.Answer: C8) For the 50 years preceding 1994, international trade policies have been governedA) by the World Trade Organization.B) by the International Monetary Fund.C) by the World.D) by an international treaty known as the General Agreement on Tariffs and Trade (GATT).E) None of the above.Answer: D9) The international capital market isA) the place where you can rent earth moving equipment anywhere in the world.B) a set of arrangements by which individuals and firms exchange money now for promises to pay in the future.C) the arrangement where banks build up their capital by borrowing from the Central Bank.D) the place where emerging economies accept capital invested by banks.E) None of the above.Answer: B10) Since 1994, trade rules have been enforced byA) the WTO.B) the G10.C) the GATT.D) The U.S. Congress.E) None of the above.Answer:A11) Cost-benefit analysis of international tradeA) is basically useless.B) is empirically intractable.C) focuses attention primarily on conflicts of interest within countries.D) focuses attention on conflicts of interests between countries.E) None of the above.Answer: C12) An improvement in a country’s balance of payments means a decrease in its balance of payments deficit, or an increase in its surplus. In fact we know that a surplus in a balance of paymentsA) is good.B) is usually good.C) is probably good.D) may be considered bad.E) is always bad.Answer: D13) The GATT wasA) an international treaty.B) an international U.N. agency.C) an international IMF agency.D) a U.S. government agency.E) a collection of tariffs.Answer: A14) International economics can be divided into two broad sub-fieldsA) macro and micro.B) developed and less developed.C) monetary and barter.D) international trade and international money.E) static and dynamic.Answer: DInternational Economics, 8e (Krugman)Chapter 2 World Trade: An Overview2.1 Who Trades with Whom?1) What percent of all world production of goods and services is exported to other countries?A) 10%B) 30%C) 50%D) 100%E) None of the above.Answer: B2) The gravity model offers a logical explanation for the fact thatA) trade between Asia and the U.S. has grown faster than NAFTA trade.B) trade in services has grown faster than trade in goods.C) trade in manufactures has grown faster than in agricultural products.D) Intra-European Union trade exceeds International Trade of the European Union.E) None of the above.Answer: D3) According to the gravity model, a characteristic that tends to affect the probability of trade existing betweenany two countries isA) their cultural affinity.B) the average weight/value of their traded goods.C) their colonial-historical ties.D) the distance between them.E) the number of varieties produced on the average by their industries.Answer: D4) Why does the gravity model work?A) Large economies became large because they were engaged in international trade.B) Large economies have relatively large incomes, and hence spend more on government promotion of trade and investment.C) Large economies have relatively larger areas which raises the probability that a productive activity will take place within the borders of that country.D) Large economies tend to have large incomes and tend to spend more on imports.E) None of the above.Answer: D5) The two neighbors of the United States do a lot more trade with the United States than European economiesof 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.Answer: B6) Since World War II (the early 1950s), the proportion of most countries' production being used in some other countryA) remained constant.B) increased.C) decreased.D) fluctuated widely with no clear trend.E) both A and D above.Answer: B7) Since World War II, the relative importance of raw materials, including oil, in total world tradeA) remained constant.B) increased.C) decreased.D) fluctuated widely with no clear trendE) both A and D above.Answer: C8) In the current Post-Industrial economy, international trade in services (including banking and financial services)A) dominates world trade.B) does not exist.C) is relatively small.D) is relatively stagnant.E) None of the above.Answer: C9) In the pre-World War I period, the U.S. exported primarilyA) manufactured goods.B) services.C) primary products including agricultural.D) technology intensive products.E) None of the above.Answer: C10) In the pre-World War I period, the United Kingdom exported primarilyA) manufactured goods.B) services.C) primary products including agricultural.D) technology intensive products.E) None of the above.Answer:A11) In the present, most of the exports from China are inA) manufactured goods.B) services.C) primary products including agricultural.D) technology intensive products.E) None of the above.Answer: AInternational Economics, 8e (Krugman)Chapter 3 Labor Productivity and Comparative Advantage: The Ricardian Model1) Trade between two countries can benefit both countries ifA) each country exports that good in which it has a comparative advantage.B) each country enjoys superior terms of trade.C) each country has a more elastic demand for the imported goods.D) each country has a more elastic supply for the exported goods.E) Both C and D.Answer: A2) In order to know whether a country has a comparative advantage in the production of one particular product we need information on at least ________ unit labor requirementsA) oneB) twoC) threeD) fourE) fiveAnswer: D3) A country engaging in trade according to the principles of comparative advantage 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.Answer: B4) Given the information in the table above, if it is ascertained that Foreign uses prison-slave labor to produce its exports, then home shouldA) export cloth.B) export widgets.C) export both and import nothing.D) export and import nothing.E) All of the above.Answer: A5) Given the information in the table above, if the Home economy suffered a meltdown, and theUnit Labor Requirements doubled to 30 for cloth and 60 for widgets then home shouldA) export cloth.B) export widgets.C) export both and import nothing.D) export and import nothing.E) All of the above.Answer: A6) The earliest statement of the principle of comparative advantage is associated withA) David Hume.B) David Ricardo.C) Adam Smith.D) Eli Heckscher.E) Bertil Ohlin.Answer: B7) The Gains from Trade associated with the principle of Comparative Advantage depends onA) the trade partners must differ in technology or tastes.B) there can be no more goods traded than the number of trade partners.C) there may be no more trade partners than goods traded.D) All of the above.E) None of the above.Answer: A8) The Ricardian model demonstrates thatA) trade between two countries will benefit both countries.B) trade between two countries may benefit both regardless of which good each exports.two countries may benefit both if each exports the product in which it has a comparative advantage. C)trade betweenD) trade between two countries may benefit one but harm the other.E) None of the above.Answer: C9) Given the information in the table aboveA) neither country has a comparative advantage.B) Home has a comparative advantage in cloth.C) Foreign has a comparative advantage in cloth.D) Home has a comparative advantage in widgets.E) Home has a comparative advantage in both products.Answer: B10) Given the information in the table above, if wages were to double in Home, then Home shouldA) export cloth.B) export widgets.C) export both and import nothing.D) export and import nothing.E) All of the above.Answer: A11) In a two product two country world, international trade can lead to increases inA) 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.E) None of the above.Answer: B12) A nation engaging in trade according to the Ricardian model will find its consumption 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.Answer: C13) In the Ricardian model, if a country's trade is restricted, this will cause all except which?A) limit specialization and the division of laborB) reduce the volume of trade and the gains from tradeC) cause nations to produce inside their production possibilities curvesD) may result in a country producing some of the product of its comparative disadvantageE) None of the above.Answer: C14) If the world terms of trade for a country are somewhere between the domestic cost ratio of Hand that of F, thenA) country H but not country F will gain from trade.B) country H and country F will both gain from trade.C) neither country H nor F will gain from trade.D) only the country whose government subsidizes its exports will gain.E) None of the above.Answer: B15) According to Ricardo, a country will have a comparative advantage in the product in which itsA) labor productivity is relatively low.B) labor productivity is relatively high.C) labor mobility is relatively low.D) labor mobility is relatively high.E) None of the above.Answer: B16)Assume that labor is the only factor of production and that wages in the United 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 per hour.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.Answer: A17) Let us define the real wage as the purchasing power of one hour of labor. In the Ricardian 2X2 model, if twocountries under autarky engage in trade thenA) the real wage will not be affected since this is a financial variable.B) the real wage will increase only if a country attains full specialization.C) the real wage will increase in one country only if it decreases in the other.D) the real wage will rise in both countries.E) None of the above.Answer: D18) In a two country and two product Ricardian model, a small country is likely to benefit more than the largecountry becauseA) the large country will wield greater political power, and hence will not yield to market signals.B) the small country is less likely to trade at price equal or close to its autarkic (domestic) relative prices.C) the small country is more likely to fully specialize.D) the small country is less likely to fully specialize.E) None of the above.Answer: B19) An examination of the Ricardian model of comparative advantage yields the clear result thattrade is (potentially) beneficial for each of the two trading partners since it allows for anexpanded consumption choice for each. However, for the world as a whole the expansion ofproduction of one product must involve a decrease in the availability of the other, so that it isnot clear that trade is better for the world as a whole as compared to an initial situation ofnon-trade (but efficient production in each country). Are there in fact gains from trade for theworld as a whole? Explain.Answer: If we were to combine the production possibility frontiers of the two countries to create a single world production possibility frontier, then it is true that any change in production points (from autarky tospecialization with trade) would involve a tradeoff of one good for another from the world'sperspective. In other words, the new solution cannot possibly involve the production of more of bothgoods. However, since we know that each country is better off at the new solution, it must be true thatthe original points were not on the trade contract curve between the two countries, and it was in factpossible to make some people better off without making others worse off, so that the new solutiondoes indeed represent a welfare improvement from the world's perspective.20）Given the information in the table above. What is the opportunity cost of Cloth in terms of Widgets in Foreign? Answer: One half a widget.21) Given the information in the table above. If these two countries trade these two goods in the context of the Ricardian model of comparative advantage, then what is the lower limit of the world equilibrium price of widgets? Answer: 1/2 Cloths.22) Given the information in the table above. If these two countries trade these two goods with each other incontext of the Ricardian model of comparative advantage, what is the lower limit for the price of cloth? Answer: One half a widget.23) Given the information in the table above. What is the opportunity cost of cloth in terms of Widgets inForeign?Answer: 2 widgets.24) If a production possibilities frontier is bowed out (concave to the origin), then production occurs underconditions ofA) constant opportunity costs.B) increasing opportunity costs.C) decreasing opportunity costs.D) infinite opportunity costs.E) None of the above.Answer: B25) If the production possibilities frontier of one the trade partners ("Country A") is bowed out (concave to theorigin), then increased specialization in production by that country willA) increase the economic welfare of both countries.B) increase the economic welfare of only Country A.C) decrease the economic welfare of Country A.D) decrease the economic welfare of Country B.E) None of the above.Answer: A26)If one country's wage level is very high relative to the other's (the relative wage exceeding the relative productivity ratios), thenA) it is not possible that producers in each will find export markets profitable.B) it is not possible that consumers in both countries will enhance their respective welfares throughimports.C) it is not possible that both countries will find gains from trade.D) it is possible that both will enjoy the conventional gains from trade.E) None of the above.Answer: D27) In a two-country, two-product world, the statement "Germany enjoys a comparative advantageover France in autos relative to ships" is equivalent toA) France having a comparative advantage over Germany in ships.B) France having a comparative disadvantage compared to Germany in autos and ships.C) Germany having a comparative advantage over France in autos and ships.D) France having no comparative advantage over Germany.E) None of the above.Answer: A28) Suppose the United states production possibility frontier was flatter to the widget axis, whereasGermany's was flatter to the butter axis. We now learn that the German wage doubles, but U.S.wages do not change at all. We now know thatA) the United States has no comparative advantage.B) Germany has a comparative advantage in butter.C) the United States has a comparative advantage in butter.D) Not enough information is given.E) None of the above.Answer: B29) We know that in antiquity, China exported silk because no-one in any other country knew how to producethis product. From this information we learn thatA) China enjoyed a comparative advantage in silk.B) China enjoyed an absolute advantage, but not a comparative advantage in silk.C) no comparative advantage exists because technology was not diffused.D) China should have exported silk even though it had no comparative advantage.E) None of the above.Answer: A30) The evidence cited in the chapter using the examples of the East Asia New IndustrializingCountries suggests that as international productivities converge, so do international wage levels.Why do you suppose this happened for the East Asian NICs? In light of your answer, what doyou think is likely to happen to the relative wages (relative to those in the United States) ofChina in the coming decade? Explain your reasoning.Answer: Following the logic of the Ricardian model of comparative advantage, the East Asian countries played to their respective comparative advantages. This allowed the world demand to provide excessdemands for their relatively abundant labor, which in turn tended to raise these wages. If Chinafollows the same pattern, their wages levels should also be expected over time to converge to those intheir industrialized country markets.Answers to Textbook Problems1. a. The production possibility curve is a straight line that intercepts the apple axis at 400(1200/3)and the banana axis at 600(1200/2).b. The opportunity cost of apples in terms of bananas is 3/2. It takes three units of labor toharvest an apple but only two units of labor to harvest a banana. If one foregoes harvesting an apple,this frees up three units of labor. These 3 units of labor could then be used to harvest 1.5 bananas.c. Labor mobility ensures a common wage in each sector and competition ensures the price ofgoods equals their cost of production. Thus, the relative price equals the relative costs, which equalsthe wage times the unit labor requirement for apples divided by the wage times the unit laborrequirement for bananas. Since wages are equal across sectors, the price ratio equals the ratio of the unit labor requirement, which is 3 apples per 2 bananas. 2. a. The production possibility curve is linear, with the intercept on the apple axis equal to 160(800/5) and the intercept on the banana axis equal to 800(800/1).b. The world relative supply curve is constructed by determining the supply of apples relative to the supply of bananas at each relative price. The lowest relative price at which apples are harvested is 3 apples per 2 bananas. The relative supply curve is flat at this price. The maximum number of apples supplied at the price of 3/2 is 400 supplied by Home while, at this price, Foreign harvests 800 bananas and no apples, giving a maximum relative supply at this price of 1/2. This relative supply holds for any price between 3/2 and 5. At the price of 5, both countries would harvest apples. The relative supply curve is again flat at 5. Thus, the relative supply curve is step shaped, flat at the price 3/2 from the relative supply of 0 to 1/2, vertical at the relative quantity 1/2 rising from 3/2 to 5, and then flat again from 1/2 to infinity.International Economics, 8e (Krugman)Chapter 4 Resources, Comparative Advantage, and Income Distribution1) In the 2-factor, 2 good Heckscher-Ohlin model, an influx of workers from across the border wouldA) move the point of production along the production possibility curve.B) shift the production possibility curve outward, and increase the production of both goods.C) shift the production possibility curve outward and decrease the production of the labor-intensiveproduct.D) shift the production possibility curve outward and decrease the production of the capital-intensiveproduct.E) None of the above.Answer: D2) In the 2-factor, 2 good Heckscher-Ohlin model, the two countries differ inA) tastes.B) military capabilities.C) size.D) relative availabilities of factors of production.E) labor productivities.Answer: D3) The Heckscher-Ohlin model differs from the Ricardian model of Comparative Advantage in that the formerA) has only two countries.B) has only two products.C) has two factors of production.D) has two production possibility frontiers (one for each country).E) None of the above.Answer: C4) "A good cannot be both land- and labor-intensive." Discuss.Answer: In a two good, two factor model, such as the original Heckscher-Ohlin framework, the factorintensities are relative intensities. Hence, the relevant statistic is either workers per acre (or acres perworker); or wage per rental unit (or rental per wage). In order to illustrate the logic of the statementabove, let us assume that the production of a broom requires 4 workers and 1 acre. Also, let us assumethat the production of one bushel of wheat requires 40 workers and 80 acres. In this case the acres perperson required to produce a broom is one quarter, whereas to produce a bushel of wheat requires 2 acres per person. The wheat is therefore (relatively) land intensive, and the broom is (relatively) labor intensive.5) "No country is abundant in everything." Discuss.Answer: The concept of relative (country) factor abundance is (like factor intensities) a relative concept. When we identify a country as being capital intensive, we mean that it has more capital per worker than doesthe other country. If one country has more capital worker than another, it is an arithmeticimpossibility that it also has more workers per unit capital.6) Refer to above figure. Can you guess which group of producers in Country P might lobby against free trade? Answer:In Country P, the owners of the relatively scarce factor of production are the owners of capital. Their relative and realincomes will decrease, and so they may well attempt to lobby for protectionism, which may prevent the country frommoving to a free trade equilibrium.An Economy can produce good 1 using labor and capital and good 2 using labor and land. The total supply of labor is 100 units. Given the supply of capital, the outputs of the two goods depends on labor input as follows:7) Refer to the table above.(a) Graph the production functions for good 1 and good 2(b) Graph the production possibility frontier. Why is it curved?Answer: The production possibility frontier is curved because of the diminishing returns associated with the expansion of output in the short run in each of the two industries.8) In the 2-factor, 2 good Heckscher-Ohlin model, a change from autarky (no trade) to trade will benefit theowners 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.Answer: B9) According to the Heckscher-Ohlin model, the source of comparative advantage is a country'sA) technology.B) advertising.C) human capital.D) factor endowments.E) Both A and B.Answer: D10) The Hechscher-Ohlin model states that a country will have a comparative advantage in the good or servicewhose production is relatively intensive in the ________ with which the country is relatively abundant.A) tastesB) technologyC) factor of productionD) opportunity costE) scale economyAnswer: C11) According to the Hecksher-Ohlin model,A) everyone automatically gains from trade.B) the scarce factor necessarily gains from trade.C) the gainers could compensate the losers and still retain gains.D) a country gains if its exports have a high value added.E) None of the above.Answer:CAssume that only two countries, A and B, exist.12) Refer to the table above. If good S is capital intensive, then following the Heckscher-Ohlin Theory,A) country A will export good S.B) country B will export good S.C) both countries will export good S.D) trade will not occur between these two countries.E) Insufficient information is given.Answer: B13) In international-trade equilibrium in the Heckscher-Ohlin model,A) the capital rich country will charge less for the capital intensive good than the price paid by the capital poor country for the capital-intensive good.B) the capital rich country will charge the same price for the capital intensive good as that paid for it by the capital poor country.C) the capital rich country will charge more for the capital intensive good than the 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 poor country.E) the workers in the capital rich country will earn less than those in the poor country.Answer: B14) The Heckscher-Ohlin model predicts all of the following exceptA) which country will export which product.B) 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.。
国际经济学(双语)-第4章
4.1 Theories for Trade Protection
Terms of Trade Argument
In some cases, the terms of trade benefits of a tariff outweigh its costs, so there is a terms-of-trade argument for a tariff.
4.2 Tariffs
Two consequences of the effective rate calculation:
The degree of effective protection increases as the value added by domestic producers declines. In the formula, the higher the value of aij is, the greater the effective protection rate for any given nominal tariff rate on the final product will be.
Chapter 4 Tariffs and Nontariff Barriers
4.1 Theories for Trade Protection 4.2 Tariffs 4.3 Nontariff Trade Barriers
4.2 Tariffs
A tariff is simply a tax (duty) levied on a product when it crosses national boundaries.
A tariff on imports used in the production process reduces the level of effective protection. In the formula, as ti rises, the numerator of the formula decreases and hence ERP decreases.
国际经济学英文版上册第八版章节练习第五章
International Economics, 8e (Krugman)Chapter 5 The Standard Trade Model1) The concept "terms of trade" meansA) the amount of exports sold by a country、B) the price conditions bargained for in international markets、C) the price of a country's exports divided by the price of its imports、D) the quantities of imports received in free trade、E) None of the above、Answer: C2) A country cannot produce a mix of products with a higher value than whereA) the isovalue line intersects the production possibility frontier、B) the isovalue line is tangent to the production possibility frontier、C) the isovalue line is above the production possibility frontier、D) the isovalue line is below the production possibility frontier、E) the isovalue line is tangent with the indifference curve、Answer: B3) Tastes of individuals are represented byA) the production possibility frontier、B) the isovalue line、C) the indifference curve、D) the production function、E) None of the above、Answer: C4) If P C/P F were to increase in the international marketplace, thenA) all countries would be better off、B) the terms of trade of cloth exporters improve、C) the terms of trade of food exporters improve、D) the terms of trade of all countries improve、E) None of the above、Answer: B5) If P C/P F were to increase,A) the cloth exporter would increase the quantity of cloth exports、B) the cloth exporter would increase the quantity of cloth produced、C) the food exporter would increase the quantity of food exports、D) Both A and C、E) None of the above、Answer: B6) If a small country were to levy a tariff on its imports then this wouldA) have no effect on that country's economic welfare、B) increase the country's economic welfare、C) decrease the country's economic welfare、D) change the terms of trade、E) None of the above、Answer: C7) Suppose now that Home experiences growth strongly biased toward its export, cloth,A) this will tend to worsen Home's terms of trade、B) this will tend to improve Home's terms of trade、C) this will tend to worsen Foreign's terms of trade、D) this will have no effect on Foreign's terms of trade、E) None of the above、Answer: A8) Suppose that Home is a "small country," and it experiences growth strongly biased toward its export, clothA) this will tend to worsen Home's terms of tradeB) this will tend to improve Home's terms of tradeC) this will tend to worsen Foreign's terms of tradeD) this will have no effect on Foreign's terms of tradeE) None of the aboveAnswer: D9) When the production possibility frontier shifts out relatively more in one direction, we haveA) biased growth、B) unbiased growth、C) immiserizing growth、D) balanced growth、E) imbalanced growth、Answer: D10) Export-biased growth in Country H willA) improve the terms of trade of Country H、B) trigger anti-bias regulations of the WTO、C) worsen the terms of trade of Country F (the trade partner)、D) improve the terms of trade of Country F、E) decrease economic welfare in Country H、Answer: D11) If the poor USAID recipient countries have a higher marginal propensity to consume each and every productthan does the United States, then such aid willA) worsen the U.S. terms of trade、B) improve the U.S. terms of trade、C) leave the world terms of trade unaffected、D) worsen the terms of trade of both donor and recipient countries、E) None of the above、Answer: B12) If, beginning from a free trade equilibrium, the (net barter) terms of trade improve for a country, then it willA) increase production of its import competing good、B) increase consumption of its export good、C) increase the quantity of its imports、D) experience an export-biased shift in its production possibility frontier、E) None of the above、Answer: C13) After WWI, Germany was forced to make large reparations-transfers of real income- to France、If themarginal propensity to consume was equal in both countries, and if France's demand was biased toward food (relative to Germany's demand pattern) then we would expect to findA) the world's relative price for food remains unchanged、B) the world's relative price for food increase、C) the world's relative price for food decrease、D) the world relative price for both food and non-food rise、E) None of the above、Answer: B14) During the 19th Century, economic growth of the major trading countries was biased toward manufacturesand away from food、The less developed countries of that time were net exporters of food、From this information, we would expect to have observedA) falling terms of trade for the less developed countries、B) improving (rising) terms of trade for the less developed countries、C) no change at all in the terms of trade of the less developed countries、D) a decrease in the relative price of food、E) None of the above、Answer: B15) Immiserizing growth could occur toA) a poor country experiencing export-biased economic growth、B) a poor country experiencing import-biased economic growth、C) a poor country experiencing growth in its non-traded sector、D) a poor country experiencing capital-intensive biased growth、E) None of the above、Answer: A16) A large country experiencing import-biased economic growth will tend to experienceA) positive terms of trade、B) deteriorating terms of trade、C) improving terms of trade、D) immiserizing terms of trade、E) None of the above、Answer: C17) If a there are no international loans or capital flows, then if a country's terms of trade improve, we wouldfind thatA) the value of its exports exceeds the value of its imports、B) the value of its exports becomes less than that of its imports、C) the value of its exports exactly equals that of its imports、D) the quantity of its exports equals that of its imports、E) None of the above、Answer: C18) If the U、S、Agency for International Development transfers funds to poor countries in Sub-Saharan Africa,the conventional assumption, following Keynes' analysis would presume that this would tend toA) worsen the U.S. terms of trade、B) improve the U.S. terms of trade、C) worsen the terms of trade of the African aid recipients、D) improve the terms of trade of the African aid recipients、E) None of the above、Answer: A19) If a country's growth is biased in favor of its import, this should unequivocally improve its terms of tradeand its economic welfare、Discuss、Answer: Suppose Japan experiences economic growth biased in favor of its import substitutes、For example, assume that Japan imports components and exports final goods, but that it experiences a major growthin its components manufacture sector、Since Japan is internationally a large country in these markets,this would tend to hurt its component supplier's terms of trade (and help Japan's)、However, such abias in economic growth may tend to lessen the volume of international trade、At an extreme, Japanmay become an exporter of components and an importer of final goods、If the result is a lessening ofspecialization and of the volume of trade, then this effect will lower Japan's welfare associated withgains from trade、If an actual change in the pattern of comparative advantage occurs (a possibility)this may cause dynamic dislocations whose harm overpowers static gains for a relatively long periodof time、20) At the conclusion of World War I, Germany, as a punishment, was obliged to make a large transfer to Francein the form of reparations、Is it possible that the actual reparations may have improved Germany'seconomic welfare?Answer: Such a result is not likely、However, theoretically, if France's income elasticity of demand for Germany's exports was higher than Germany's income elasticity of demand for its own exportable,then the real income transfer associated with these reparations may have improved Germany's termsof trade, and improved its balance of payments, thus helping Germany in manner unanticipated in theTreaty of Verssaille、Explain、21) If the U.S. (a large country) imposes a tariff on its imported good, this will tend toA) have no effect on terms of trade、B) improve the terms of trade of all countries、C) improve the terms of trade of the United States、D) cause a deterioration of U.S. terms of trade、E) raise the world price of the good imported by the United States、Answer: C22) If Slovenia is a small country in world trade terms, then if it imposes a large series of tariffs on many of itsimports, this wouldA) have no effect on its terms of trade、B) improve its terms of trade、C) deteriorate its terms of trade、D) decrease its marginal propensity to consume、E) None of the above、Answer: A23) If Slovenia were a large country in world trade, then if it instituted a large set of subsidies for its exports, thismustA) have no effect on its terms of trade、B) improve its terms of trade、C) deteriorate its terms of trade、D) decrease its marginal propensity to consume、E) None of the above、Answer: C24) If Slovenia were a large country in world trade, then if it instituted a large set of subsidies for its exports, thismustA) cause retaliation on the part of its trade partners、B) harm Slovenia's real income、C) improve Slovenia's real income、D) improve the real income of its trade partners、E) None of the above、Answer: D25) An export subsidy has the opposite effect on terms of trade to the effect of an import tariff、Domestically atariff will raise the price of the import good, deteriorating the domestic terms of trade、A productionsubsidy for the export product will lower the local price of the export good, lowering the domestic terms of trade for the country、Hence the export subsidy and the import tariff have the same effect、This analysis seems to contradict the first sentence in this paragraph、Discuss this paradox、Answer: While this (Lerner) equivalence may well occur domestically, internationally the tariff will improve a country's terms of trade、An export subsidy on the other hand will in fact lower the internationalprice of the (now readily available) export good, hence hurting a country's terms of trade、26) Suppose, as a result of various dynamic factors associated with exposure to international competition,Albania's economy grew, and is now represented by the rightmost production possibility frontier in the figure above、If its point of production with trade was point c, would you consider this growth to beexport-biased or import biased? If Albania were a large country with respect to the world trade of A and B, how would this growth affect Albania's terms of trade? Its real income?Answer: If point c is the production point with trade, then Albania has a comparative advantage in good B、Therefore, from the shape of the new production possibility frontier (as compared to the original one),this is clearly an export-biased growth、This ceteris paribus would tend to worsen Albania's terms oftrade、The terms of trade effect would, again ceteris paribus, worsen its real income、However, thegrowth itself acts in the opposite direction、27) Suppose, as a result of various dynamic factors associated with exposure to international competition,Albania's economy grew, and is now represented by the rightmost production possibility frontier in the figure above、If its point of production with trade was point b, would you consider this growth to beexport-biased or import biased? If Albania were a large country with respect to the world trade of A and B, how would this growth affect Albania's terms of trade? Its real income? What if Albania were a small country?Answer: If the production with trade point was point b, then the observed growth is a case of import-biased growth, and would improve Albania's terms of trade、If Albania were a small country, the world'sterms of trade would not change at all、In such a case, economic growth (with no induced change inincome distributions) would always increase its real income、。
克鲁格曼《国际经济学》第八版课后答案(英文)-Ch08
Chapter 8The Instruments of Trade PolicyChapter OrganizationBasic Tariff AnalysisSupply, Demand, and Trade in a Single IndustryEffects of a TariffMeasuring the Amount of ProtectionCosts and Benefits of a TariffConsumer and Producer SurplusMeasuring the Costs and BenefitsOther Instruments of Trade PolicyExport Subsidies: TheoryCase Study: Europe’s Common Agricultural PolicyImport Quotas: TheoryCase Study: An Import Quota in Practice: U.S. SugarVoluntary Export RestraintsCase Study: A Voluntary Export Restraint in Practice: Japanese Autos Local Content RequirementsBox: American Buses, Made in HungaryOther Trade Policy InstrumentsThe Effects of Trade Policy: A SummarySummaryAppendix I: Tariff Analysis in General EquilibriumA Tariff in a Small CountryA Tariff in a Large CountryAppendix II: Tariffs and Import Quotas in the Presence of Monopoly The Model with Free TradeThe Model with a TariffThe Model with an Import QuotaComparing a Tariff with a QuotaChapter 8 The Instruments of Trade Policy 33Chapter OverviewThis chapter and the next three focus on international trade policy. Students will have heard various arguments for and against restrictive trade practices in the media. Some of these arguments are sound and some are clearly not grounded in fact. This chapter provides a framework for analyzing the economic effects of trade policies by describing the tools of trade policy and analyzing their effects on consumers and producers in domestic and foreign countries. Case studies discuss actual episodes of restrictive trade practices. An instructor might try to underscore the relevance of these issues by having students scan newspapers and magazines for other timely examples of protectionism at work.The analysis presented here takes a partial equilibrium view, focusing on demand and supply in one market, rather than the general equilibrium approach followed in previous chapters. Import demand and export supply curves are derived from domestic and foreign demand and supply curves. There are a number of trade policy instruments analyzed in this chapter using these tools. Some of the important instruments of trade policy include specific tariffs, defined as taxes levied as a fixed charge for each unit of a good imported; ad valorem tariffs, levied as a fraction of the value of the imported good; export subsidies, which are payments given to a firm or industry that ships a good abroad; import quotas, which are direct restrictions on the quantity of some good that may be imported; voluntary export restraints, which are quotas on trading that are imposed by the exporting country instead of the importing country; and local content requirements, which are regulations that require that some specified fraction of a good is produced domestically.The import supply and export demand analysis demonstrates that the imposition of a tariff drives a wedge between prices in domestic and foreign markets, and increases prices in the country imposing the tariff and lowers the price in the other country by less than the amount of the tariff. This contrasts with most textbook presentations which make the small country assumption that the domestic internal price equals the world price times one plus the tariff rate. The actual protection provided by a tariff willnot equal the tariff rate if imported intermediate goods are used in the production of the protected good. The proper measurement, the effective rate of protection, is described in the text and calculated for a sample problem.The analysis of the costs and benefits of trade restrictions require tools of welfare analysis. The text explains the essential tools of consumer and producer surplus. Consumer surplus on each unit sold is defined as the difference between the actual price and the amount that consumers would have been willing to pay for the product. Geometrically, consumer surplus is equal to the area under the demand curve and above the price of the good. Producer surplus is the difference between the minimum amount for which a producer is willing to sell his product and the price which he actually receives. Geometrically, producer surplus is equal to the area above the supply curve and below the price line. These tools are fundamental to the student’s understanding of the implications of trade polici es and should be developed carefully. The costs of a tariff include distortionary efficiency losses in both consumption and production. A tariff provides gains from terms of trade improvement when and if it lowers the foreign export price. Summing the areas in a diagram of internal demand and supply provides a method for analyzing the net loss or gain from a tariff.Other instruments of trade policy can be analyzed with this method. An export subsidy operates in exactly the reverse fashion of an import tariff. An import quota has similar effects as an import tariff upon prices and quantities, but revenues, in the form of quota rents, accrue to foreign producers of the protected good. Voluntary export restraints are a form of quotas in which import licenses are held by foreign governments. Local content requirements raise the price of imports and domestic goods and do not result in either government revenue or quota rents.34 Krugman/Obstfeld •International Economics: Theory and Policy, Eighth EditionThroughout the chapter the analysis of different trade restrictions are illustrated by drawing upon specific episodes. Europe’s common agricultural policy provides and example of export subsidies in action. The case study corresponding to quotas describes trade restrictions on U.S. sugar imports. Voluntary export restraints are discussed in the context of Japanese auto sales to the United States. The oil import quota in the United States in the 1960’s provides an example of a local content scheme.There are two appendices to this chapter. Appendix I uses a general equilibrium framework to analyze the impact of a tariff, departing from the partial equilibrium approach taken in the chapter. When a small country imposes a tariff, it shifts production away from its exported good and toward the imported good. Consumption shifts toward the domestically produced goods. Both the volume of trade and welfare of the country decline. A large country imposing a tariff can improve its terms of trade by an amount potentially large enough to offset the production and consumption distortions. For a large country, a tariff may be welfare improving.Appendix II discusses tariffs and import quotas in the presence of a domestic monopoly. Free trade eliminates the monopoly power of a domestic producer and the monopolist mimics the actions of a firm in a perfectly competitive market, setting output such that marginal cost equals world price. A tariff raises domestic price. The monopolist, still facing a perfectly elastic demand curve, sets output such that marginal cost equals internal price. A monopolist faces a downward sloping demand curve under a quota.A quota is not equivalent to a tariff in this case. Domestic production is lower and internal price higher when a particular level of imports is obtained through the imposition of a quota rather than a tariff.Answers to Textbook Problems1. The import demand equation, MD, is found by subtracting the home supply equation from the homedemand equation. This results in MD= 80 - 40 ⨯P. Without trade, domestic prices and quantities adjust such that import demand is zero. Thus, the price in the absence of trade is 2.2. a. Foreign’s export supply curve, XS, is XS=-40 + 40⨯P. In the absence of trade, the price is 1.b. When trade occurs, export supply is equal to import demand, XS=MD. Thus, using theequations from Problems 1 and 2a, P= 1.50, and the volume of trade is 20.3. a. The new MD curve is 80 - 40 ⨯ (P+ t) where t is the specific tariff rate, equal to 0.5. (Note: Insolving these problems, you should be careful about whether a specific tariff or ad valorem tariff is imposed. With an ad valorem tariff, the MD equation would be expressed as MD= 80 - 40 ⨯(1 + t)P.) The equation for the export supply curve by the foreign country is unchanged. Solving,we find that the world price is $1.25, and thus the internal price at home is $1.75. The volume of trade has been reduced to 10, and the total demand for wheat at home has fallen to 65 (from thefree trade level of 70). The total demand for wheat in Foreign has gone up from 50 to 55.b. andc. The welfare of the home country is best studied using the combined numerical andgraphical solutions presented below in Figure 8.1.Figure 8.1Chapter 8 The Instruments of Trade Policy 35where the areas in the figure are:a.55(1.75 - 1.50) -0.5(55 - 50)(1.75 - 1.50) = 13.125b. 0.5(55 - 50)(1.75 - 1.50) = 0.625c. (65 - 55)(1.75 - 1.50) = 2.50d. 0.5(70 - 65)(1.75 - 1.50) = 0.625e. (65 - 55)(1.50 - 1.25) = 2.50Consumer surplus change: -(a+ b+ c+ d) =-16.875. Producer surplus change: a= 13.125.Government revenue change: c+ e= 5. Efficiency losses b+ d are exceeded by terms of tradegain e. (Note: In the calculations for the a, b, and d areas, a figure of 0.5 shows up. This isbecause we are measuring the area of a triangle, which is one-half of the area of the rectangledefined by the product of the horizontal and vertical sides.)4. Using the same solution methodology as in Problem 3, when the home country is very small relativeto the foreign country, its effects on the terms of trade are expected to be much less. The smallcountry is much more likely to be hurt by its imposition of a tariff. Indeed, this intuition is shown in this problem. The free trade equilibrium is now at the price $1.09 and the trade volume is now$36.40.With the imposition of a tariff of 0.5 by Home, the new world price is $1.045, the internal home price is $1.545, home demand is 69.10 units, home supply is 50.90, and the volume of trade is 18.20.When Home is relatively small, the effect of a tariff on world price is smaller than when Home is relatively large. When Foreign and Home were closer in size, a tariff of 0.5 by home lowered world price by 25 percent, whereas in this case the same tariff lowers world price by about 5 percent. The internal Home price is now closer to the free trade price plus t than when Home was relatively large.In this case, the government revenues from the tariff equal 9.10, the consumer surplus loss is 33.51, and the producer surplus gain is 21.089. The distortionary losses associated with the tariff (areas b+ d) sum to 4.14 and the terms of trade gain (e) is 0.819. Clearly, in this small country example, the distortionary losses from the tariff swamp the terms of trade gains. The general lesson is the smaller the economy, the larger the losses from a tariff since the terms of trade gains are smaller.5. ERP = (200 ⨯ 1.50 - 200)/100 = 100%6. The effective rate of protection takes into consideration the costs of imported intermediate goods.Here, 55% of the cost can be imported, suggesting with no distortion, home value added would be 45%. A 15% increase in the price of ethanol, though, means home value added could be as high as 60%. Effective rate of protection = (V t-V w)/V w, where V t is the value added in the presence of trade policies, and V w is the value added without trade distortions. In this case, we have (60 - 45)/45 = 33% effective rate of protection.7. We first use the foreign export supply and domestic import demand curves to determine the newworld price. The foreign supply of exports curve, with a foreign subsidy of 50 percent per unit,becomes XS=-40 + 40(1 + 0.5) ⨯P. The equilibrium world price is 1.2 and the internal foreign price is 1.8. The volume of trade is 32. The foreign demand and supply curves are used to determine the costs and benefits of the subsidy. Construct a diagram similar to that in the text and calculate the area of the various polygons. The government must provide (1.8 - 1.2)⨯ 32 = 19.2 units of output to support the subsidy. Foreign producers surplus rises due to the subsidy by the amount of 15.3 units of output. Foreign consumers surplus falls due to the higher price by 7.5 units of the good. Thus, the net loss to Foreign due to the subsidy is 7.5 + 19.2 - 15.3 = 11.4 units of output. Home consumers and producers face an internal price of 1.2 as a result of the subsidy. Home consumers surplus rises by 70 ⨯ 0.3 + 0.5 (6⨯ 0.3) = 21.9, while Home producers surplus falls by 44 ⨯ 0.3 + 0.5(6 ⨯ 0.3) =14.1, for a net gain of 7.8 units of output.36 Krugman/Obstfeld •International Economics: Theory and Policy, Eighth Edition8. a. False, unemployment has more to do with labor market issues and the business cycle than withtariff policy.b. False, the opposite is true because tariffs by large countries can actually reduce world priceswhich helps offset their effects on consumers.c. This kind of policy might reduce automobile production and Mexico, but also would increase theprice of automobiles in the United States, and would result in the same welfare loss associatedwith any quota.9. At a price of $10 per bag of peanuts, Acirema imports 200 bags of peanuts. A quota limiting theimport of peanuts to 50 bags has the following effects:a. The price of peanuts rises to $20 per bag.b. The quota rents are ($20 - $10) ⨯ 50 = $500.c. The consumption distortion loss is 0.5 ⨯ 100 bags ⨯ $10 per bag = $500.d. The production distortion loss is 0.5 ⨯ 50 bags ⨯ $10 per bag = $250.10. The reason is largely that the benefits of these policies accrue to a small group of people and thecosts are spread out over many people. Thus, those that benefit care far more deeply about these policies. These typical political economy problems associated with trade policy are probably even more troublesome in agriculture, where there are long standing cultural reasons for farmers andfarming communities to want to hold onto their way of life, making the interests even moreentrenched than they would normally be.11. It would improve the income distribution within the economy since wages in manufacturing wouldincrease, and real incomes for others in the economy would decrease due to higher prices formanufactured goods. This is true only under the assumption that manufacturing wages are lower than all others in the economy. If they were higher than others in the economy, the tariff policies would worsen the income distribution.。
International Economics chap 04(克鲁格曼国际经济学英文版)
Theory and Policy (Ninth Edition) Paul R. Krugman 黄卫平 彭刚
Chapter 4 A more general one: The standard trade Model
CONTENTS
01 Explain standard trade model
An increase in PC/ PF
RS
1
1
2
2
1
QC
QC
Qc/ QF
QF
Food imports
Relative prices and demand
C Q
Cloth exports
PC×CC+PF×CF=v=PC×QC+PF×QF -budget constraint
The equation above says that production and consumption must lie on the same isovalue line in blue. 1.The economy’s choice of a point of consumption on the isovalue line depends on the tastes of its consumers. 2.Its choice of a point of production depends on the relative price of cloth.
and the relative supply curve; 2. The relationship between relative prices and relative
国际经济学英文版上册(第八版)章节练习第五章
精选文档International Economics, 8e (Krugman)Chapter 5The Standard Trade Model1)The concept "terms of trade" meansA)the amount of exports sold by a country.B)the price conditions bargained for in international markets.C)the price of a country's exports divided by the price of its imports.D)the quantities of imports received in free trade.E)None of the above.Answer: C2)A country cannot produce a mix of products with a higher value than whereA)the isovalue line intersects the production possibility frontier.B)the isovalue line is tangent to the production possibility frontier.C)the isovalue line is above the production possibility frontier.D)the isovalue line is below the production possibility frontier.E)the isovalue line is tangent with the indifference curve.Answer: B3)Tastes of individuals are represented byA)the production possibility frontier.B)the isovalue line.C)the indifference curve.D)the production function.E)None of the above.Answer: C4)If P C /P F were to increase in the international marketplace, thenA)all countries would be better off.B)the terms of trade of cloth exporters improve.C)the terms of trade of food exporters improve.D)the terms of trade of all countries improve.E)None of the above.Answer: B5)If P C /P F were to increase,A)the cloth exporter would increase the quantity of cloth exports.B)the cloth exporter would increase the quantity of cloth produced.C)the food exporter would increase the quantity of food exports.D)Both A and C.E)None of the above.Answer: B精选文档6)If a small country were to levy a tariff on its imports then this wouldA)have no effect on that country's economic welfare.B)increase the country's economic welfare.C)decrease the country's economic welfare.D)change the terms of trade.E)None of the above.Answer: C7)Suppose now that Home experiences growth strongly biased toward its export, cloth,A)this will tend to worsen Home's terms of trade.B)this will tend to improve Home's terms of trade.C)this will tend to worsen Foreign's terms of trade.D)this will have no effect on Foreign's terms of trade.E)None of the above.Answer: A8)Suppose that Home is a "small country," and it experiences growth strongly biased toward its export, clothA)this will tend to worsen Home's terms of tradeB)this will tend to improve Home's terms of tradeC)this will tend to worsen Foreign's terms of tradeD)this will have no effect on Foreign's terms of tradeE)None of the aboveAnswer: D9)When the production possibility frontier shifts out relatively more in one direction, we haveA)biased growth.B)unbiased growth.C)immiserizing growth.D)balanced growth.E)imbalanced growth.Answer:D10)Export -biased growth in Country H willA)improve the terms of trade of Country H.B) trigger anti -bias regulations of the WTO.C)worsen the terms of trade of Country F (the trade partner).D)improve the terms of trade of Country F.E)decrease economic welfare in Country H.Answer: D精选文档11) If the poor USAID recipient countries have a higher marginal propensity to consume each and every productthan does the United States, then such aid willA)worsen the U.S. terms of trade.B)improve the U.S. terms of trade.C)leave the world terms of trade unaffected.D)worsen the terms of trade of both donor and recipient countries.E)None of the above.Answer: B12)If, beginning from a free trade equilibrium, the (net barter) terms of trade improve for a country, then it willA)increase production of its import competing good.B)increase consumption of its export good.C)increase the quantity of its imports.D) experience an export -biased shift in its production possibility frontier.E)None of the above.Answer: C13) After WWI, Germany was forced to make large reparations-transfers of real income - to France. If themarginal propensity to consume was equal in both countries, and if France's demand was biasedtoward food (relative to Germany's demand pattern) then we would expect to findA)the world's relative price for food remains unchanged.B)the world's relative price for food increase.C)the world's relative price for food decrease.D) the world relative price for both food and non-food rise.E)None of the above.Answer: B14)During the 19th Century, economic growth of the major trading countries was biased towardmanufactures and away from food. The less developed countries of that time were net exporters of food.From this information, we would expect to have observedA)falling terms of trade for the less developed countries.B)improving (rising) terms of trade for the less developed countries.C)no change at all in the terms of trade of the less developed countries.D) a decrease in the relative price of food.E)None of the above.Answer: B15) Immiserizing growth could occur toA) a poor country experiencing export-biased economic growth.B)a poor country experiencing import-biased economic growth.C)a poor country experiencing growth in its non-traded sector.D) a poor country experiencing capital-intensive biased growth.E)None of the above.Answer: A精选文档16) A large country experiencing import-biased economic growth will tend to experienceA)positive terms of trade.B)deteriorating terms of trade.C)improving terms of trade.D)immiserizing terms of trade.E)None of the above.Answer: C17)If a there are no international loans or capital flows, then if a country's terms of trade improve, we wouldfind thatA)the value of its exports exceeds the value of its imports.B)the value of its exports becomes less than that of its imports.C)the value of its exports exactly equals that of its imports.D)the quantity of its exports equals that of its imports.E)None of the above.Answer: C18) If the U.S. Agency for International Development transfers funds to poor countries in Sub-Saharan Africa,the conventional assumption, following Keynes' analysis would presume that this would tend toA) worsen the U.S. terms of trade.B) improve the U.S. terms of trade.C) worsen the terms of trade of the African aid recipients.D) improve the terms of trade of the African aid recipients.E) None of the above.Answer: A19)If a country's growth is biased in favor of its import, this should unequivocally improve its terms oftrade and its economic welfare. Discuss.Answer: Suppose Japan experiences economic growth biased in favor of its import substitutes. For example, assume that Japan imports components and exports final goods, but that it experiences a majorgrowth in its components manufacture sector. Since Japan is internationally a large country in thesemarkets, this would tend to hurt its component supplier's terms of trade (and help Japan's). However,such a bias in economic growth may tend to lessen the volume of international trade. At an extreme,Japan may become an exporter of components and an importer of final goods. If the result is alessening of specialization and of the volume of trade, then this effect will lower Japan's welfareassociated with gains from trade. If an actual change in the pattern of comparative advantage occurs(a possibility) this may cause dynamic dislocations whose harm overpowers static gains for a relativelylong period of time.20)At the conclusion of World War I, Germany, as a punishment, was obliged to make a large transfer toFrance in the form of reparations. Is it possible that the actual reparations may have improved Germany'seconomic welfare?Answer: Such a result is not likely. However, theoretically, if France's income elasticity of demand forGermany's exports was higher than Germany's income elasticity of demand for its own exportable,then the real income transfer associated with these reparations may have improved Germany's termsof trade, and improved its balance of payments, thus helping Germany in manner unanticipated inthe Treaty of Verssaille. Explain.精选文档21) If the U.S. (a large country) imposes a tariff on its imported good, this will tend toA)have no effect on terms of trade.B)improve the terms of trade of all countries.C)improve the terms of trade of the United States.D)cause a deterioration of U.S. terms of trade.E)raise the world price of the good imported by the United States.Answer: C22)If Slovenia is a small country in world trade terms, then if it imposes a large series of tariffs on many of itsimports, this wouldA)have no effect on its terms of trade.B)improve its terms of trade.C)deteriorate its terms of trade.D)decrease its marginal propensity to consume.E)None of the above.Answer: A23) If Slovenia were a large country in world trade, then if it instituted a large set of subsidies for its exports, thismustA)have no effect on its terms of trade.B)improve its terms of trade.C)deteriorate its terms of trade.D)decrease its marginal propensity to consume.E)None of the above.Answer: C24) If Slovenia were a large country in world trade, then if it instituted a large set of subsidies for its exports, thismustA)cause retaliation on the part of its trade partners.B)harm Slovenia's real income.C)improve Slovenia's real income.D)improve the real income of its trade partners.E)None of the above.Answer: D25)An export subsidy has the opposite effect on terms of trade to the effect of an import tariff. Domestically atariff will raise the price of the import good, deteriorating the domestic terms of trade. A production subsidyfor the export product will lower the local price of the export good, lowering the domestic terms of trade forthe country. Hence the export subsidy and the import tariff have the same effect. This analysis seems tocontradict the first sentence in this paragraph. Discuss this paradox.Answer: While this (Lerner) equivalence may well occur domestically, internationally the tariff will improve a country's terms of trade. An export subsidy on the other hand will in fact lower the internationalprice of the (now readily available) export good, hence hurting a country's terms of trade.精选文档26) Suppose, as a result of various dynamic factors associated with exposure to international competition,Albania's economy grew, and is now represented by the rightmost production possibility frontier inthe figure above. If its point of production with trade was point c, would you consider this growth to beexport -biased or import biased? If Albania were a large country with respect to the world trade of A and B,how would this growth affect Albania's terms of trade? Its real income?Answer: If point c is the production point with trade, then Albania has a comparative advantage in good B.Therefore, from the shape of the new production possibility frontier (as compared to the original one),this is clearly an export-biased growth. This ceteris paribus would tend to worsen Albania's terms oftrade. The terms of trade effect would, again ceteris paribus , worsen its real income. However, the growth itself acts in the opposite direction.27)Suppose, as a result of various dynamic factors associated with exposure to international competition,Albania's economy grew, and is now represented by the rightmost production possibility frontier in thefigure above. If its point of production with trade was point b, would you consider this growth to beexport -biased or import biased? If Albania were a large country with respect to the world trade of A and B,how would this growth affect Albania's terms of trade? Its real income? What if Albania were a small country ?Answer: If the production with trade point was point b, then the observed growth is a case of import-biased growth, and would improve Albania's terms of trade. If Albania were a small country, the world'sterms of trade would not change at all. In such a case, economic growth (with no induced change inincome distributions) would always increase its real income.。
国际经济学第八版下册答案
国际经济学第八版下册答案【篇一：克鲁格曼《国际经济学》第八版课后答案(英文)-ch10】>trade policy in developing countries? chapter organizationimport-substituting industrializationthe infant industry argumentpromoting manufacturing through protectionismcase study: mexico abandons import-substituting industrializationresults of favoring manufacturing: problems of import-substituting industrializationtrade liberalization since 1985export-oriented industrialization: the east asian miraclethe facts of asian growthtrade policy in the hpaesindustrial policy in the hpaesbox: india’s boomother factors in growthsummary? chapter overviewthe final two chapters on international trade, chapters 10 and 11, discuss trade policy considerations in the context of specific issues. chapter 10 focuses on the use of trade policyin developing countries and chapter 11 focuses on new controversies in trade policy.while there is great diversity among the developing countries, they share some common policy concerns. these include the development of domestic manufacturing industries, the uneven degree of development within the country, and the desire to foster economic growth and improve living standards. this chapter discusses both the successful and unsuccessful trade policy strategies which have been applied by developing countries in attempts to address these concerns.many developing countries pose the creation of a significant manufacturing sector as a key goal of economic development. one commonly voiced argument for protecting manufacturing industries is the infant industry argument, which states thatdeveloping countries have a potential comparative advantage inmanufacturing and can realize that potential through an initial period of protection. this argument assumes market failure in the form of imperfect capital markets or the existence of externalities in production. such a market failure makes the social return to production higher than the private return. this implies that a firm will not be able to recapture rents or profits that are in line with the contribution to welfare made by the product or industry establishment of the firm. without some government support, the argument goes, the amount of investment which will occur in this industry will be less than socially optimal levels.chapter 10 trade policy in developing countries 43given these arguments, many nations have attempted import-substitution-led industrialization. in the 1950s and 1960s the strategy was quite popular and did lead to a dramatic reduction in imports in some countries. the overall result, though, was not a success. the infant industry argument did not always hold, as protection could let young industries survive, but could not make them efficient. by the late 1980s, most countries had shifted away from the strategy, and the chapter includes a case study of mexico’s change from import substitution to a more open strategy.since 1985 many developing countries had abandoned import substitution and pursued (sometimesaggressively) trade liberalization. the chapter notes two sides of the experience. on the one hand, trade has gone up considerably and changed in character. developing countries export far more of the gdpthan prior to liberalization, and more of it is in manufacturing as opposed to agricultural or mining sectors. at the same time, the growth experience of these countries has not been universally good and it is difficult to tell if the success stories are due to trade or due to reforms that came at the same time as liberalization. the east asian “miracle” of the high-performing asian economies (hpaes) provides a striking andcontroversial example of export-oriented industrialization. while these countries encountered difficulties in the late 1990s (see chapter 22), this chapter focuses on their spectaculargrowth from the 1960s to 1990s. it is acknowledged that the growth was extremely impressive; the controversy is over the source of the success in these countries. some observers argue that although these countries do not practice free trade, they have lower rates of protection (and more outward orientation) than other developing countries. other observers argue that the interventionist industrial policies pursued by the hpaes have been the reason for success, and outward orientation is just a by-product of active rather than passive government involvement in industry. still others argue that high rates of domestic savings and rapid improvements in education are behind the stunning growth performance.? answers to textbook problems1. the countries that seem to benefit most from international trade include many of the countries of thepacific rim, south korea, taiwan, singapore, hong kong, malaysia, indonesia, and others. though the experience of each country is somewhat different, most of these countries employed some kind of infant industry protection during the beginning phases of their development, but then withdrew protection relatively quickly after industries became competitive on world markets. concerningwhether their experiences lend support to the infant industry argument or argues against it is still a matter of controversy. however, it appears that it would have been difficult for these countries to engage in export-led growth without some kind of initial government intervention.the japanese example gives pause to those who believe that protectionism is always disastrous.however, the fact of japanese success does not demonstrate that protectionist trade policy wasresponsible for that success. japan was an exceptional society that had emerged into the ranks of advanced nations before world war ii and was recovering from wartime devastation. it is arguable that economic success would have come anyway, so that the apparent success of protection represents a “pseudo-infant-industry” case of the kind discussed in the text.a. the initial high costs of production would justify infant industry protection if the costs to thesociety during the period of protection were less than the future stream of benefits from a mature, low cost industry.b. an individual firm does not have an incentive to bear development costs itself for an entireindustry when these benefits will accrue to other firms. thereis a stronger case for infantindustry protection in this instance because of the existenceof market failure in the form of theappropriability of technology. 2. 3.44 krugman/obstfeld ? international economics: theory and policy, eighth edition4. india ceased being a colony of britain in 1948, thus its dramatic break from all imports in favor ofmexico (as opposed to recently deposed colonial firms in india) may have helped keep mexico open to importing capital goods necessary in the manufacturing process.in some countries the infant industry argument simply did not appear to work well. such protection will not create a competitive manufacturing sector if there are basic reasonswhy a country does not have a competitive advantage in a particular area. this was particularly the case in manufacturing where many low-income countries lack skilled labor, entrepreneurs, and the level of managerialacumen necessary to be competitive in world markets. the argument is that trade policy alone cannot rectify these problems. often manufacturing was also created on such a small-scale that it made the industries noncompetitive, where economies of scale are critical to being a low-cost producer.moreover protectionist policies in less-developed countries have had a negative impact on incentives, which has led to “rent-seeking” or corruption.question 6 involves assessing the impact of dual labor markets. the topic is not covered extensively in the current edition of the book and instructors may not want to assign the question unless they bring additional material into the classroom to augment the text.a. we know that the wages should be equivalent, so, given that80 – la ? wa, we can substitute wm for wa, and recall that wm ? 100 – lm. combined with the information that la ? lm ? 100, we getl*a?40 and the equilibrium wage ? 40.b. since wm ? 50, lm ? 50 and thus la ? 50 and wm ? 30, we have a net loss of (0.5)(10)(20) ? 100 in national income. 5. 6.【篇二：国际经济学(克鲁格曼)课后习题答案1-8章】1．为什么说在决定生产和消费时，相对价格比绝对价格更重要？答案提示：当生产处于生产边界线上，资源则得到了充分利用，这时，要想增加某一产品的生产，必须降低另一产品的生产，也就是说，增加某一产品的生产是有机会机本（或社会成本）的。
克鲁格曼《国际经济学》第八版课后答案
Chapter 18The International Monetary System, 1870–1973?Chapter OrganizationMacroeconomic Policy Goals in an Open EconomyInternal Balance: Full Employment and Price-Level StabilityExternal Balance: The Optimal Level of the Current Account International Macroeconomic Policy under the Gold Standard, 1870–1914 Origins of the Gold StandardExternal Balance under the Gold StandardThe Price-Specie-Flow MechanismThe Gold Standard “Rules of the Game”: Myth and RealityBox: Hume v. the MercantilistsInternal Balance under the Gold StandardCase Study: The Political Economy of Exchange Rate Regimes:Conflict over America’s Monetary Standard During the 1890s The Interwar Years, 1918–1939The Fleeting Return to GoldInternational Economic DisintegrationCase Study: The International Gold Standard and the Great Depression The Bretton Woods System and the International Monetary Fund Goals and Structure of the IMFConvertibility and the Expansion of Private Capital FlowsSpeculative Capital Flows and CrisesAnalyzing Policy Options under the Bretton Woods SystemMaintaining Internal BalanceMaintaining External BalanceExpenditure-Changing and Expenditure-Switching PoliciesThe External-Balance Problem of the United StatesCase Study: The Decline and Fall of the Bretton Woods SystemWorldwide Inflation and the Transition to Floating Rates Summary?Chapter OverviewThis is the first of five international monetary policy chapters. These chapters complement the preceding theory chapters in several ways. They provide the historical and institutional background students require to place their theoretical knowledge in a useful context. The chapters also allow students, through study of historical and current events, to sharpen their grasp of the theoretical models and to develop the intuition those models can provide. (Application of the theory to events of current interest will hopefully motivate students to return to earlier chapters and master points that may have been missed on the first pass.)Chapter 18 chronicles the evolution of the international monetary system from the gold standard of1870–1914, through the interwar years, and up to and including the post-World War II Bretton Woods regime that ended in March 1973. The central focus of the chapter is the manner in which each system addressed, or failed to address, the requirements of internal and external balance for its participants.A country is in internal balance when its resources are fully employed and there is price level stability. External balance implies an optimal time path of the current account subject to its being balanced over the long run. Other factors have been important in the definition of external balance at various times, and these are discussed in the text. The basic definition of external balance as an appropriate current-account level, however, seems to capture a goal that most policy-makers share regardless of the particular circumstances.The price-specie-flow mechanism described by David Hume shows how the gold standard could ensure convergence to external balance. You may want to present the following model of the price-specie-flow mechanism. This model is based upon three equations: 1. The balance sheet of the central bank. At the most simple level, this is justgold holdings equals the money supply: G ? M.2. The quantity theory. With velocity and output assumed constant and bothnormalized to 1, this yields the simple equation M ? P.3. A balance of payments equation where the current account is a function of thereal exchange rate and there are no private capital flows: CA ? f(E ? P*/P)These equations can be combined in a figure like the one below. The 45? line represents the quantity theory, and the vertical line is the price level where the real exchange rate results in a balanced current account. The economy moves along the 45? line back towards the equilibrium Point 0 whenever it is out of equilibrium. For example, the loss of four-fifths of a country’s gold would put that country at Point a with lower prices and a lower money supply. The resulting real exchange rate depreciation causes a current account surplus which restores money balances as the country proceeds up the 45? line froma to 0.FigureThe automatic adjustment process described by the price-specie-flow mechanism is expedited by following “rules of the game” under which governments contract the domestic source components oftheir monetary bases when gold reserves are falling (corresponding to a current-account deficit) and expand when gold reserves are rising (the surplus case).In practice, there was little incentive for countries with expanding gold reserves to follow the “rules of the game.” This increased the contractionary burden shouldered by countries with persistent current account deficits. The gold standard also subjugated internal balance to the demands of external balance. Research suggests price-level stability and high employment were attained less consistently under the gold standard than in the post-1945 period.The interwar years were marked by severe economic instability. The monetization of war debt and of reparation payments led to episodes of hyperinflation in Europe. Anill-fated attempt to return to thepre-war gold parity for the pound led to stagnation in Britain. Competitive devaluations and protectionism were pursued in a futile effort to stimulate domestic economic growth during the Great Depression.These beggar-thy-neighbor policies provoked foreign retaliation and led to the disintegration of the world economy. As one of the case studies shows, strict adherence to the Gold Standard appears to have hurt many countries during the Great Depression.Determined to avoid repeating the mistakes of the interwar years, Allied economic policy-makers metat Bretton Woods in 1944 to forge a new international monetary system for the postwar world. The exchange-rate regime that emerged from this conference had at its center the . dollar. All other currencies had fixed exchange rates against the dollar, which itself had a fixed value in terms of gold.An International Monetary Fund was set up to oversee the system and facilitate its functioning by lending to countries with temporary balance of payments problems.A formal discussion of internal and external balance introduces the concepts of expenditure-switching and expenditure-changing policies. The Bretton Woods system, with its emphasis on infrequent adjustmentof fixed parities, restricted the use of expenditure-switching policies. Increases in U.S. monetary growth to finance fiscal expenditures after the mid-1960s led to a loss of confidence in the dollar and the termination of the dollar’s convertibility into gold. The analysis presented in the text demonstrateshow the Bretton Woods system forced countries to “import” inflation from the United States and shows that the breakdown of the system occurred when countries were no longer willing to accept this burden.?Answers to Textbook Problems1. a. Since it takes considerable investment to develop uranium mines, you wouldwant a larger current account deficit to allow your country to finance some of the investment with foreign savings.b. A permanent increase in the world price of copper would cause a short-termcurrent account deficit if the price rise leads you to invest more in coppermining. If there are no investment effects, you would not change yourexternal balance target because it would be optimal simply to spend youradditional income.c. A temporary increase in the world price of copper would cause a currentaccount surplus. You would want to smooth out your country’s consumption bysaving some of its temporarily higher income.d. A temporary rise in the world price of oil would cause a current accountdeficit if you were an importer of oil, but a surplus if you were an exporter of oil.2. Because the marginal propensity to consume out of income is less than 1, atransfer of income from B to A increases savings in A and decreases savings in B.Therefore, A has a current account surplus and B has a corresponding deficit.This corresponds to a balance of payments disequilibrium in Hume’s world, which must be financed by gold flows from B to A. These gold flows increase A’s money supply and decrease B’s money supply, pushing up prices in A and depressingprices in B. These price changes cease once balance of payments equilibrium has been restored.3. Changes in parities reflected both initial misalignments and balance of paymentscrises. Attempts to return to the parities of the prewar period after the war ignored the changes in underlying economic fundamentals that the war caused. This made some exchange rates less than fully credible and encouraged balance ofpayments crises. Central bank commitments to the gold parities were also less than credible after the wartime suspension of the gold standard, and as a result of the increasing concern of governments with internal economic conditions.4. A monetary contraction, under the gold standard, will lead to an increase in thegold holdings of the contracting country’s central bank if other countries do not pursue a similar policy. All countries cannot succeed in doing thissimultaneously since the total stock of gold reserves is fixed in the short run.Under a reserve currency system, however, a monetary contraction causes anincipient rise in the domestic interest rate, which attracts foreign capital. The central bank must accommodate the inflow of foreign capital to preserve theexchange rate parity. There is thus an increase in the central bank’s holdings of foreign reserves equal to the fall in its holdings of domestic assets. There is no obstacle to a simultaneous increase in reserves by all central banksbecause central banks acquire more claims on the reserve currency country while their citizens end up with correspondingly greater liabilities.5. The increase in domestic prices makes home exports less attractive and causes acurrent account deficit. This diminishes the money supply and causescontractionary pressures in the economywhich serve to mitigate and ultimately reverse wage demands and price increases.6. A “demand determined” increase in dollar reserve holdings would not affect theworld supply of money as central banks merely attempt to trade their holdings of domestic assets for dollar rese rves. A “supply determined” increase in reserve holdings, however, would result from expansionary monetary policy in the United States (the reserve center). At least at the end of the Bretton Woods era the increase in world dollar reserves arose in part because of an expansionarymonetary policyin the United States rather than a desire by other central banks to increasetheir holdings of dollar assets. Only the “supply determined” increase indollar reserves is relevant for analyzing the relationship between world holdings of dollar reserves by central banks and inflation.7. An increase in the world interest rate leads to a fall in a central bank’sholdings of foreign reserves as domestic residents trade in their cash forforeign bonds. This leads to a d ecline in the home country’s money supply. The central bank of a “small” country cannot offset these effects sinceit cannot alter the world interest rate. An attempt to sterilize the reserve loss through open market purchases would fail unless bonds are imperfect substitutes.8. Capital account restrictions insulate the domestic interest rate from the worldinterest rate. Monetary policy, as well as fiscal policy, can be used to achieve internal balance. Because there are no offsetting capital flows, monetary policy, as well as fiscal policy, can be used to achieve internal balance. The costs of capital controls include the inefficiency which is introduced when the domestic interest rate differs from the world rate and the high costs of enforcing the controls.9. Yes, it does seem that the external balance problem of a deficit country is moresevere. While the macroeconomic imbalance may be equally problematic in the long run regardless of whether it is a deficit or surplus, large external deficits involve the risk that the market will fix the problem quickly by ceasing to fund the external deficit. In this case, there may have to be rapid adjustment that could be disruptive. Surplus countries are rarely forced into rapid adjustments, making the problems less risky.10. An inflow attack is different from capital flight, but many parallels exist. Inan “outflow” attack, speculators sell the home currency and drain the central bank of its foreign assets. The central bank could always defend if it so chooses (they can raise interest rates to improbably high levels), but if it is unwilling to cripple the economy with tight monetary policy, it must relent. An “inflow”attack is similar in that the central bank can always maintain the peg, it is just that the consequences of doing so may be more unpalatable than breaking the peg. If money flows in, the central bank must buy foreign assets to keep thecurrency from appreciating. If the central bank cannot sterilize all the inflows (eventually they may run out of domestic assets to sell to sterilize thetransactions where they are buying foreign assets), it will have to either let the currency appreciate or let the money supply rise. If it is unwilling to allow and increase in inflation due to a rising money supply, breaking the peg may be preferable.11. a. We know that China has a very large current account surplus, placing them highabove the XX line. They also have moderate inflationary pressures (describedas “gathering” in the question, implying they are not yet very strong). This suggests that China is above the II line, but not too far above it. It wouldbe placed in Zone 1 (see below).b. China needs to appreciate the exchange rate to move down on the graph towardsbalance. (Shown on the graph with the dashed line down)c. China would need to expand government spending to move to the right and hitthe overall balance point. Such a policy would help cushion the negativeaggregate demand pressurethat the appreciation might generate.。
克鲁格曼《国际经济学》(第8版)课后习题详解
克鲁格曼《国际经济学》（第8版）课后习题详解克鲁格曼《国际经济学》(第8版)课后习题详解第1章绪论本章不是考试的重点章节，建议读者对本章内容只作大致了解即可，本章没有相关的课后习题。
第1篇国际贸易理论第2章世界贸易概览一、概念题1>(发展中国家(developing countries)答:发展中国家是与发达国家相对的经济上比较落后的国家，又称“欠发达国家”或“落后国家”。
通常指第三世界国家，包括亚洲、非洲、拉丁美洲及其他地区的130多个国家。
衡量一国是否为发展中国家的具体标准有很多种，如经济学家刘易斯和世界银行均提出过界定发展中国家的标准。
一般而言，凡人均收入低于美国人均收入的五分之一的国家就被定义为发展中国家。
比较贫困和落后是发展中国家的共同特点。
2>(服务外包(service outsourcing)答:服务外包是指企业将其非核心的业务外包出去，利用外部最优秀的专业化团队来承接其业务，从而使其专注于核心业务，达到降低成本、提高效率、增强企业核心竞争力和对环境应变能力的一种管理模式。
20世纪90年代以来，随着信息技术的迅速发展，特别是互联网的普遍存在及广泛应用，服务外包得到蓬勃发展。
从美国到英国，从欧洲到亚洲，无论是中小企业还是跨国公司，都把自己有限的资源集中于公司的核心能力上而将其余业务交给外部专业公司，服务外包成为“发达经济中不断成长的现象”。
3>(引力模型(gravity model)答:丁伯根和波伊赫能的引力模型基本表达式为:其中，是国与国的贸易额，为常量，是国的国内生产总值，是国的国内生产总值，是两国的距离。
、、三个参数是用来拟合实际的经济数据。
引力模型方程式表明:其他条件不变的情况下，两国间的贸易规模与两国的GDP成正比，与两国间的距离成反比。
把整个世界贸易看成整体，可利用引力模型来预测任意两国之间的贸易规模。
另外，引力模型也可以用来明确国际贸易中的异常现象。
4>(第三世界(third world)答:第三世界这个名词原本是指法国大革命中的Third Estate(第三阶级)。
国际经济学第4章-精品
PW’
bc d e
M2
SH
P
SH+F+t
SH+F
t
DH
大国进口需求曲线
国外出口供给曲线
征税后出口供给曲线
A c b+d C ef
B
Q1 Q3 Q4 Q2
Q
M2
M1
Q
M1 （a）国内市场
（b）进口市场
图4-3 大国关税的局部均衡效应
17
（2）关税对大国消费量、产量、贸易 量和财政收入的影响
关税消费效应：Q2－Q4； 关税生产效应： Q3－Q1 ； 关税贸易效应：M1－M2； 关税收入效应：c+e。
关税生产效应：由关税导致的国内生产的增加，
即： Q3－Q1 ；
关税贸易效应：由关税导致的进口的减少，即：
M1－M2；
关税收入效应：由关税所导致的政府财政收入的
增加，即：c。
14
（3）关税对小国消费者剩余（Cs）和 生产者剩余（Ps）的影响
关税导致小国Cs减少-(a+b+c+d); 关税导致小国Ps增加：+a;
关税的概念 关税的种类 关税的征收方式
5
5.1.1 关税的概念
关税（tariff）是一国通过海关对进出口商 品所课征的一种税收。由于征收关税提高了 进出口商品的成本和价格，客观上限制了进 出口商品的数量，故又称关税壁垒。
征收关税的目的有二：其一，增加政府的财 政收入（财政关税）；其二，保护本国的产 品和市场（保护关税）。
未曝光的窄长彩色胶卷
16元/平方米
232元/平方米
(1)每台完税价格低于或等于 (1)每台完税价格低于或等于
混 合 税
国际经济学理论与政策 第八版 上册 保罗 课后答案[第4章]
![国际经济学理论与政策 第八版 上册 保罗 课后答案[第4章]](https://img.taocdn.com/s3/m/85a19d6d31b765ce050814c1.png)
Chapter 4Resources, Comparative Advantage,and Income DistributionChapter OrganizationA Model of a Two-Factor EconomyPrices and ProductionChoosing the Mix of InputsFactor Prices and Goods PricesResources and OutputEffects of International Trade Between Two-Factor Economies Relative Prices and the Pattern of Trade Trade and the Distribution of Income Factor Price EqualizationTrade and Income Distribution in the Short Run Case Study: North-South Trade and Income Inequality The Political Economy of Trade: A Preliminary View The Gains from Trade, Revisited Optimal Trade PolicyIncome Distribution and Trade Politics Box: Income Distribution and the Beginnings of Trade TheoryEmpirical Evidence on the Heckscher-Ohlin ModelTesting the Heckscher-Ohlin ModelImplications of the TestsSummaryAppendix: Factor Prices, Goods Prices, and Input ChoicesChoice of TechniqueGoods Prices and Factor PricesFactor Economiesadeomeort RunIncome InequalitPreliminary Viewisitedde PoliticChapter 4 Resources, Comparative Advantage, and Income Distribution13Chapter OverviewIn Chapter 3, trade between nations was motivated by differences internationally in the relative productivity of workers when producing a range of products. In Chapter 4, this analysis goes a step further by introducing the Heckscher-Ohlin theory .The Heckscher-Ohlin theory considers the pattern of production and trade which will arise when countries have different endowments of factors of production, such as labor, capital, and land. The basic point is that countries tend to export goods that are intensive in the factors with which they are abundantly supplied. Trade has strong effects on the relative earnings of resources, and tends to lead to equalization acrosscountries of prices of the factors of production. These theoretical results and related empirical findings are presented in this chapter.The chapter begins by developing a general equilibrium model of an economy with two goods which are each produced using two factors according to fixed coefficient production functions. The assumption of fixed coefficient production functions provides an unambiguous ranking of goods in terms of factor intensities. (The appendix develops the model when the production functions have variable coefficients.) Two important results are derived using this model. The first is known as the Rybczynski effect . Increasing the relative supply of one factor, holding relative goods prices constant, leads to a biased expansion of production possibilities favoring the relative supply of the good which uses that factor intensively. The second key result is known as the Stolper-Samuelson effect . Increasing the relative price of a good, holding factor supplies constant, increases the return to the factor used intensively in the production of that good by more than the price increase, while lowering the return to the other factor. This result has important income distribution implications. It can be quite instructive to think of the effects of demographic/labor force changes on the supply of different products. For example, how might the pattern of production during the productive years of the “Baby Boom ” generation differ from the pattern of production for post Baby Boom generations? What does this imply for returns to factors and relative price behavior? The central message concerning trade patterns of the Heckscher-Ohlin theory is that countries tend to export goods whose production is intensive in factors with which they are relatively abundantly endowed. This is demonstrated by showing that, using the relative supply and relative demand analysis, the country relatively abundantly endowed with a certain factor will produce that factor more cheaply than the other country. International trade leads to a convergence of goods prices. Thus, the results from the Stolper-Samuelson effect demonstrate that owners of a country ’s abundant factors gain from trade, but owners of a country ’s scarce factors lose. The extension of this result is the important Factor Price Equalization Theorem , which states that trade in (and thus price equalization of) goods leads to an equalization in the rewards to factors across countries. The political implications of factor price equalization should be interesting to students.The chapter also introduces some political economy considerations. First, it briefly notes that many of the results regarding trade and income distribution assume full and swift adjustment in the economy. In the short run, though, labor and capital that are currently in a particular industry may have sector-specific skills or knowledge and are being forced to move to another sector, and this involves costs. Thus, even if a shift in relative prices were to improve the lot of labor, for those laborers who must change jobs, there is a short run cost.supply of Stolper-Samuelson reases the return to increase, while low implications.ink of the eff how mig functionnown as the constant, leads togood which uses thson effect . Increasn to the factor uselowering the retureffects of demogrmight the patternom the pattern of pctors and relative prning trade patternduction is intensivby showing that,ndowed withde leads14 Krugman/Obstfeld • International Economics: Theory and Policy, Eighth EditionThe core of the political economy discussion focuses on the fact that when opening to trade, some may benefit and some may lose, but the expansion of economic opportunity should allow society to redistribute some of the gains towards those who lose, making sure everyone benefits on net. In practice, though, those who lose are often more concentrated and hence have more incentive to try to affect policy. Thus, trade policy is not always welfare maximizing, but may simply reflect the preferences of the loudest and best organized in society.Empirical results concerning the Heckscher-Ohlin theory , beginning with the Leontief paradox andextending to current research, do not support its predictions concerning resource endowments explaining overall patterns of trade, though some patterns do match the broad outlines of its theory (e.g., the United States imports more low-skill products from Bangladesh and more high-skill products from Germany). This observation has motivated many economists to consider motives for trade between nations that are not exclusively based on differences across countries. These concepts will be explored in later chapters. Despite these shortcomings, important and relevant results concerning incomedistribution are obtained from the Heckscher-Ohlin theory.Answers to Textbook Problems1. The definition of cattle growing as land intensive depends on the ratio of land to labor used in production, not on the ratio of land or labor to output. The ratio of land to labor in cattle exceeds the ratio in wheat in the United States, implying cattle is land intensive in the United States. Cattle is land intensive in other countries as well if wheat production in that relevant for this purpose.of the other two sides (representing land). There will be a ray from each of the two corners representing the origins. To find the slopes of these rays we use the information from the question concerning the ratios of the production coefficients. The question states that a LC /a TC 20 anda LF /a TF 5.Since a LC /a TC (L C /Q C )/(T C /Q C )C we have L C 20T C . Using the same reasoning,a LF /a TF (L F /Q F )/(T F /Q F )T F L F 5T F . We cansolve this algebraically since L C L F 600 and T T C T F 60.The solution is L C 400, T C 20, L F 200 and T F b. The dimensions of the box change with each increase in available labor, but the slopes of the raysfrom the origins remain the same. The solutions in the different cases are as follows.L 800: T C 33.33, L C 666.67, T F 26.67, L F 133.33L 1000: T C 46.67, L C 933.33, T F 13.33, L F 66.67L 1200: T C 60, L C 1200, T F 0, L F 0. (complete specialization).c. At constant factor prices, some labor would be unused, so factor prices would have to change, orthere would be unemployment.3. This question is similar to an issue discussed in Chapter 3. What matters is not the absolute abundanceof factors, but their relative abundance. Poor countries have an abundance of labor relative to capital when compared to more developed countries.depend output. The ra g cattle is land inte ratio of land to lab mparisons between he length of tw The box diagram has 600 as the length of two sides (representing labor) and 60 as the length ng land) e ratio of land to laio of land to laborntensive in the Unlabor in cattle prothe ratio of land to labor in cattle production exceeds the ratio in een another countrcountry. Comparisons between another country and the United States is less of two sides (repre2. a. and). T here will be here will be a ray from each of the two cornerse slopes of th representing the origins. To find the slopes of th ese ra ese rays we use the information from the questionduction coefficient L C /T L F / and s and since this ratio equals 5, we have ly since LChapter 4 Resources, Comparative Advantage, and Income Distribution 154. In the Ricardian model, labor gains from trade through an increase in its purchasing power. Thisresult does not support labor union demands for limits on imports from less affluent countries. The Heckscher-Ohlin model directly addresses distribution by considering the effects of trade on the owners of factors of production. In the context of this model, unskilled U.S. labor loses from trade since this group represents the relatively scarce factors in this country. The results from the Heckscher-Ohlin model support labor union demands for import limits. In the short run, certainunskilled unions may gain or lose from trade depending on in which sector they work, but in theory, in the longer run, the conclusions of the Heckscher-Ohlin model will dominate.5. Specific programmers may face wage cuts due to the competition from India, but this is not inconsistent with skilled labor wages rising. By making programming more efficient in general, this development may have increased wages for others in the software industry or lowered the prices of the goods overall. In the short run, though, it has clearly hurt those with sector specific skills who will face transition costs. There are many reasons to not block the imports of computer programming services (or outsourcing of these jobs). First, by allowing programming to be done more cheaply, it expands the production possibilities frontier of the U.S., making the entire country better off on average. Necessary redistribution can be done, but we should not stop trade which is making the nation as a whole better off. In addition, no one trade policy action exists in a vacuum, and if the U.S. blocked the programming imports, it could lead to broader trade restrictions in other countries.6. The factor proportions theory states that countries export those goods whose production is intensive in factors with which they are abundantly endowed. One would expect the United States, which has a high capital/labor ratio relative to the rest of the world, to export capital-intensive goods if the Heckscher-Ohlin theory holds. Leontief found that the United States exported labor-intensive goods. Bowen, Leamer and Sveikauskas found for the world as a whole the correlation between factor endowment and trade patterns to be tenuous. The data do not support the predictions of the theory that countries ’ exports and imports reflect the relative endowments of factors.7. If the efficiency of the factors of production differs internationally, the lessons of the Heckscher-Ohlin theory would be applied to “effective factors ” which adjust for the differences in technology or worker skills or land quality (for example). The adjusted model has been found to be more successful than the unadjusted model at explaining the pattern of trade between countries. Factor-price equalization concepts would apply to the effective factors. A worker with more skills or in a country with better technology could be considered to be equal to two workers in another country. Thus, the single person would be two effective units of labor. Thus, the one high-skilled worker could earn twice what lower-skilled workers do, and the price of one effective unit of labor would still be equalized. o broad s that countries ex bundantly endowed relative to the rest olds. Leontief foun eikauskas found fo tterns to be ten mports r trade whicsts in a vacuumrestrictions in othexport those goodwed. One would eest of the world, toound that the Unitd for the world astenuous. The datats reflect the relatiors of production dpplied to effectivend quality (for exaunadjusted modesuccessful than the unadjusted model at explaining n concepts wouldprice equalization concepts would apply to the effecti er technologyuld be t。
国际经济学英文版(第八版)章节练习第四章
International Economics, 8e (Krugman)Chapter 4 Resources, Comparative Advantage, and Income Distribution1) In the 2-factor, 2 good Heckscher-Ohlin model, an influx of workers from across the border wouldA) move the point of production along the production possibility curve.B) s hift the production possibility curve outward, and increase the production of both goods.C) s hift the production possibility curve outward and decrease the production of the labor-intensiveproduct.D) shift the production possibility curve outward and decrease the production of the capital-intensiveproduct.E) N one of the above.Answer: D2) In the 2-factor, 2 good Heckscher-Ohlin model, the two countries differ inA) tastes.B) m ilitary capabilities.C) s ize.D) relative availabilities of factors of production.E) l abor productivities.Answer: D3) The Heckscher-Ohlin model differs from the Ricardian model of Comparative Advantage in that the formerA) has only two countries.B) h as only two products.C) h as two factors of production.D) has two production possibility frontiers (one for each country).E) N one of the above.Answer: C4) "A good cannot be both land- and labor-intensive." Discuss.Answer: In a two good, two factor model, such as the original Heckscher-Ohlin framework, the factorintensities are relative intensities. Hence, the relevant statistic is either workers per acre (or acres perworker); or wage per rental unit (or rental per wage). In order to illustrate the logic of the statementabove, let us assume that the production of a broom requires 4 workers and 1 acre. Also, let us assumethat the production of one bushel of wheat requires 40 workers and 80 acres. In this case the acres perperson required to produce a broom is one quarter, whereas to produce a bushel of wheat requires 2acres per person. The wheat is therefore (relatively) land intensive, and the broom is (relatively) laborintensive.5) "No country is abundant in everything." Discuss.Answer: The concept of relative (country) factor abundance is (like factor intensities) a relative concept. When we identify a country as being capital intensive, we mean that it has more capital per worker than doesthe other country. If one country has more capital worker than another, it is an arithmeticimpossibility that it also has more workers per unit capital.6) Refer to above figure. Can you guess which group of producers in Country P might lobby against free trade?Answer:In Country P, the owners of the relatively scarce factor of production are the owners of capital. Their relative and real incomes will decrease, and so they may well attempt to lobby for protectionism, which may prevent the country from moving to a free trade equilibrium.An Economy can produce good 1 using labor and capital and good 2 using labor and land. The total supply of labor is 100units. Given the supply of capital, the outputs of the two goods depends on labor input as follows:7) Refer to the table above.(a) Graph the production functions for good 1 and good 2(b) Graph the production possibility frontier. Why is it curved?Answer: The production possibility frontier is curved because of the diminishing returns associated with the expansion of output in the short run in each of the two industries.8) In the 2-factor, 2 good Heckscher-Ohlin model, a change from autarky (no trade) to trade will benefit theowners ofA) capital.B) t he relatively abundant factor of production.C) t he relatively scarce factor of production.D) the relatively inelastic factor of production.E) t he factor of production with the largest elasticity of substitution.Answer: B9) According to the Heckscher-Ohlin model, the source of comparative advantage is a country'sA) technology.B) a dvertising.C) h uman capital.D) factor endowments.E) B oth A and B.Answer: D10) The Hechscher-Ohlin model states that a country will have a comparative advantage in the good or servicewhose production is relatively intensive in the ________ with which the country is relatively abundant.A) tastesB) t echnologyC) f actor of productionD) opportunity costE) s cale economyAnswer: C11) According to the Hecksher-Ohlin model,A) everyone automatically gains from trade.B) t he scarce factor necessarily gains from trade.C) t he gainers could compensate the losers and still retain gains.D) a country gains if its exports have a high value added.E) N one of the above.Answer: CAssume that only two countries, A and B, exist.12) Refer to the table above. If good S is capital intensive, then following the Heckscher-Ohlin Theory,A) country A will export good S.B) c ountry B will export good S.C) b oth countries will export good S.D) trade will not occur between these two countries.E) I nsufficient information is given.Answer: B13) In international-trade equilibrium in the Heckscher-Ohlin model,A) the capital rich country will charge less for the capital intensive good than the price paid by the capitalpoor country for the capital-intensive good.B) t he capital rich country will charge the same price for the capital intensive good as that paid for it bythe capital poor country.C) t he capital rich country will charge more for the capital intensive good than the price paid by the capitalpoor country for the capital-intensive good.D) the workers in the capital rich country will earn more than those in the poor country.E) t he workers in the capital rich country will earn less than those in the poor country.Answer: B14) The Heckscher-Ohlin model predicts all of the following exceptA) which country will export which product.B) w hich factor of production within each country will gain from trade.C) t he volume of trade.D) that wages will tend to become equal in both trading countries.E) N one of the above.Answe: C15) If Australia has relatively more land per worker, and Belgium has relatively more capital per worker, then iftrade were to open up between these two countries,A) the relative price of the capital-intensive product would rise in Australia.B) t he world price of the land-intensive product would be higher than it had been in Belgium.C) t he world price of the land intensive product would be higher than it had been in Australia.D) the relative price of the land intensive product would rise in Belgium.E) N one of the above.Answer: C16) If Australia has more land per worker, and Belgium has more capital per worker, then if trade were to openup between these two countries,A) the real income of capital owners in Australia would rise.B) t he real income of labor in Australia would clearly rise.C) t he real income of labor in Belgium would clearly rise.D) the real income of landowners in Belgium would fall.E) t he real incomes of capital owners in both countries would rise.Answer: D17) The reason trade clearly benefits a country is thatA) it raises the real income of the more productive elements in society.B) i t lowers the real income of the less productive elements in society.C) i t increases the levels of consumption of everyone.D) it increases society's consumption choices.E) N one of the above.Answer: D18) International trade leads to complete equalization of factor prices. Discuss.Answer: This statement is typically "true . . . but." Under a strict and limited set of assumptions, such as the original Heckscher-Ohlin model which excludes country specific technologies; non- homothetic tastes;factor intensity reversals; large country differences in (relative) factor abundances, more factors thangoods, and an equilibrium solution within the "cone of specialization"; then it may be demonstratedthat internal consistency demands that the above stated sentence is "true." However, the minute onerelaxes any of the above listed assumptions one may easily identify solutions, which contradict thefactor price equalization theorem.19) Starting from an autarky (no-trade) situation with Heckscher-Ohlin model, if Country H is relatively laborabundant, then once trade beginsA) wages and rents should rise in H.B) w ages and rents should fall in H.C) w ages should rise and rents should fall in H.D) wages should fall and rents should rise in H.E) N one of the above.Answer: C20) According to the Heckscher-Ohlin model, if the United States is richly endowed in human-capital relative toMexico, then as NAFTA increasingly leads to more bilateral free trade between the two countries,A) the United States will find its industrial base sucked into Mexico.B) M exico will find its relatively highly skilled workers drawn to the United States.C) t he wages of highly skilled U.S. workers will be drawn down to Mexican levels.D) the wages of highly skilled Mexican workers will rise to those in the United States.E) t he wages of highly skilled Mexican workers will fall to those in the United States.Answer: E21) International trade has strong effects on income distributions. Therefore, international tradeA) is beneficial to everyone in both trading countries.B) w ill tend to hurt one trading country.C) w ill tend to hurt some groups in each trading country.D) will tend to hurt everyone in both countries.E) w ill be beneficial to all those engaged in international trade.Answer: C22) Groups that lose from trade tend to lobby the government toA) shift the direction of comparative advantage.B) a bolish the Specific Factor model from practical application.C) p rovide public support for the relatively efficient sectors.D) provide protection for the relatively inefficient sectors.E) N one of the above.Answer: D23) The Leontieff ParadoxA) supported the validity of the Ricardian theory of comparative advantage.B) s upported the validity of the Heckscher-Ohlin model.C) f ailed to support the validity of the Ricardian theory.D) failed to support the validity of the Heckscher-Ohlin model.E) p roved that the U.S. economy is different from all others.Answer: D24) The Leontieff ParadoxA) refers to the finding that U.S. exports were more labor intensive than its imports.B) r efers to the finding that U.S. Exports were more capital intensive than its exports.C) r efers to the finding that the U.S. produces outside its Edgeworth Box.D) still accurately applies to today's pattern of U.S. international trade.E) r efers to the fact that Leontieff an American economist had a Russian name.Answer: AAnswers to TextbookProblems 2. a. The box diagram has 600 as the length of two sides (representing labor)and 60 as the length of the other two sides (representing land). There will be a ray fromeach of the two corners representing the origins. To find the slopes of these rays we usethe information from the question concerning the ratios of the production coefficients.The question states that a LC/a TC= 20 and a LF/a TF= 5.Since a LC/a TC= (L C/Q C)/(T C/Q C) =L C/T C we have L C= 20T C. Using the samereasoning, a LF/a TF= (L F/Q F)/(T F/Q F) =L F/T F and since this ratio equals 5, we have L F= 5T F. We can solve this algebraically since L=L C+ L F= 600 and T=T C+ T F= 60.The solution is L C= 400, T C= 20, L F= 200 and T F= 40.b. The dimensions of the box change with each increase in available labor, but theslopes of the rays from the origins remain the same. The solutions in the different casesare as follows.L= 800: T C= 33.33, L C= 666.67, T F= 26.67, L F= 133.33L= 1000: T C= 46.67, L C= 933.33, T F= 13.33, L F= 66.67L= 1200: T C= 60, L C= 1200, T F= 0, L F= 0. (completespecialization).c. At constant factor prices, some labor would be unused, so factor prices wouldhave to change, or there would be unemployment.。
国际经济学（双语）第四章贸易政策工具习题
国际经济学（双语）第四章贸易政策⼯具习题Multiple Choice Questions1.Specific tariffs areA.import taxes stated in specific legal statutes.B.import taxes calculated as a fixed charge for each unit of importedgoods.C.import taxes calculated as a fraction of the value of the imported goods.D.the same as import quotas.E.None of the above.2. Ad valorem tariffs areA. import taxes stated in ads in industry publications.B. import taxes calculated as a fixed charge for each unit of importedgoods.C．i mport taxes calculated as a fraction of the value of the imported goods.D．the same as import quotasE．N one of the above.3.If a good is imported into (large) country H from country F, then the imposition ofa tariff in country HA.raises the price of the good in both countries ("the "Law of One Price").B.raises the price in country H and cannot affect its price in country F.C.lowers the price of the good in both countries.D.lowers the price of the good in H and could raise it in F.E.raises the price of the good in H and lowers it inF.4.If a good is imported into (small) country H from country F, then the impositionof a tariff In country HA.raises the price of the good in both countries ("the "Law of One Price").B.raises the price in country H and cannot affect its price in country F.C.lowers the price of the good in both countries.D.lowers the price of the good in H and could raise it in F.E.raises the price of the good in H and lowers it inF.5.The effective rate of protection measuresA.the "true" ad valorum value of a tariff.B.the quota equivalent value of a tariff.C.the efficiency with which the tariff is collected at the customhouse.D.the protection given by the tariff to domestic value added.E.None of the above.6.The imposition of tariffs on imports results in deadweight (triangle) losses. These areA.production and consumption distortion effects.B.redistribution effects.C.revenue effectsD.efficiency effects.E.None of the above.7. A lower tariff on imported steel would most likely benefitA.foreign producers at the expense of domestic consumers.B.domestic manufacturers of steel.C.domestic consumers of steel.D.workers in the steel industry.E.None of the above.8.Of the many arguments in favor of tariffs, the one that has enjoyed significant economic justification has been theA.cheap foreign labor argument.B.infant industry argument.C.even playing field argument.D.balance of payments argumentE.domestic living standard argument.9.The main redistribution effect of a tariff is the transfer of income fromA.domestic producers to domestic buyers.B.domestic buyers to domestic producers.C.domestic producers to domestic government.D.domestic government to domestic consumers.E.None of the above.10.The principle benefit of tariff protection goes toA.domestic consumers of the good produced.B.foreign consumers of the good produced.C.domestic producers of the good produced.D.foreign producers of the good produced.E.None of the above.11.As globalization tends to increase the proportion of imported inputs relative to domestically supplied components,A.the nominal tariff automatically increases.B.the rate of (effective) protection automatically increases.C.the nominal tariff automatically decreases.D.the rate of (effective) protection automatically decreases.E.None of the above.12.Which of the following policies permits a specified quantity of goods to be imported at one tariff rate and a higher tariff rate to imports above thisquantity?A.Import tariffB.Voluntary exports restraintC.Tariff quotaD.Ad valorum tariffE.None of the above.13.Should the home country be "large" relative to its trade partners, its imposition ofa tariff on imports would lead to an increase in domestic welfare if the termsof the trade rectangle exceed the sum of theA.revenue effect plus redistribution effect.B.protective effect plus revenue effect.C.consumption effect plus redistribution effect.D.protective distortion effect plus consumption distortion effect.E.None of the above.14.A problem encountered when implementing an "infant industry" tariff is thatA.domestic consumers will purchase the foreign good regardless of thetariff.B.the industry may never "mature".C.most industries require tariff protection when they are mature.D.the tariff may hurt the industry's domestic sales.E.None of the above.15.Which of the following is a fixed percentage of the value of an imported product?A.Specific tariffB.Ad valorem tariffC.Nominal tariffD.Effective protection tariffE.None of the above.16.A tax of 20 cents per unit of imported garlic is an example of a(n)A.specific tariff.B.ad valorem tariff.C.nominal tariff.D.effective protection tariff.E.None of the above.17.A tax of 20 percent per unit of imported garlic is an example of a(n)A.specific tariff.B.ad valorem tariff.C.nominal tariff.D.effective protection tariff.E.None of the above.18.Which type of tariff is forbidden in the United States on Constitutional grounds?A.Import tariffB.Export tariffC.Specific tariffD.Prohibitive tariffE.None of the above.19.Tariffs are not defended on the ground that theyA.improve the terms of trade of foreign nations.B.protect jobs and reduce unemployment.C.promote growth and development of young industries.D.prevent over-dependence of a country on only a few industries.E.None of the above.20.The most vocal political pressure for tariffs is generally made byA.consumers lobbying for export tariffs.B.consumers lobbying for import tariffs.C.consumers lobbying for lower import tariffs.D.producers lobbying for export tariffs.E.producers lobbying for import tariffs.21.A policy of tariff reduction in the computer industry isA.in the interest of the United States as a whole and in the interest ofcomputer producing regions of the country.B.in the interest of United States as a whole but not in the interest ofcomputer producing regions of the country.C.not in the interest of the United States as a whole but in the interests ofcomputer producing regions of the country.D.not in the interest of the United States as a whole and not in the interestsof computer consumers.E.None of the above.22.The fact that industrialized countries levy very low or no tariff on raw materialsand semi processed goodsA.helps developing countries export manufactured products.B.has no effect on developing country exports.C.hurts developing country efforts to export manufactured goods.D.hurts developing country efforts to export raw materials.E.None of the above.Essay Questions1.Economic theory in general, and trade theory in particular are replete withequivalencies. For example, it is argued that for any specific tariff one canfind an equivalent ad valorum tariff; and that for any quota one can calculate a tariff equivalent. Discuss conditions or situations under which a specific and an ad valorum tariff are not equivalent. Discuss conditions or situationswhen a tariff and a quota are not equivalent.2.The Metzler Paradox is a special case of the optimum tariff concept. Discussthis assertion. Would the optimum tariff tend to be a high one or a low one in the case where this paradox exists? What conditions would be needed inthe international markets for a country's exports for this paradox to exist?Why do you suppose empirical support for the existence of this paradox hasnot been forthcoming to date?3.Some argue that tariffs always hurt the imposing country's economic welfare,and are typically designed to shift resources from one sector to another,protected or preferred one, within an economy. Find and discuss acounterexample to this argument.4.The effective rate of protection is a weighted average of nominal tariffs andtariffs on imported inputs. It has been noted that in most industrializedcountries, the nominal tariffs on raw materials or intermediate components orproducts are lower than on final-stage products meant for final markets.Why would countries design their tariff structures in this manner? Who tendsto be helped, and who is harmed by this cascading tariff structure?5.The two deadweight triangles are the Consumption distortion and Productiondistortion losses. It is easy to understand why the Consumption distortionconstitutes a loss for society. After all it raises the prices of goods toconsumers, and even causes some consumers to drop out of the marketaltogether. It seems paradoxical that the Production distortion is considered an equivalent burden on society. After all, in this case, profits increase, andadditional production (with its associated employment) comes on line. Thiswould seem to be an offset rather than an addition to the burden or loss borneby society. Explain why the Production distortion is indeed a loss to society, and what is wrong with the logic that leads to the apparent paradox.Quantitative/Graphing Problems1.In the Figure above, in the absence of Trade how many Widgets does thiscountry produce and consume?2.In the absence of trade what is the country's consumer plus producer surplus?3.With free trade and no tariffs, what is the quantity of Widgets imported?4.With a specific tariff of $3 per unit, what is the quantity of Widget imports?5.The loss of Consumer Surplus due to the tariff equals6.The lowest specific tariff which would be considered prohibitive is。
- 1、下载文档前请自行甄别文档内容的完整性，平台不提供额外的编辑、内容补充、找答案等附加服务。
- 2、"仅部分预览"的文档,不可在线预览部分如存在完整性等问题,可反馈申请退款(可完整预览的文档不适用该条件!)。
- 3、如文档侵犯您的权益，请联系客服反馈,我们会尽快为您处理(人工客服工作时间：9:00-18:30)。
International Economics, 8e (Krugman)Chapter 4 Resources, Comparative Advantage, and Income Distribution1) In the 2-factor, 2 good Heckscher-Ohlin model, an influx of workers from across the border wouldA) move the point of production along the production possibility curve.B) s hift the production possibility curve outward, and increase the production of both goods.C) s hift the production possibility curve outward and decrease the production of the labor-intensiveproduct.D) shift the production possibility curve outward and decrease the production of the capital-intensiveproduct.E) N one of the above.Answer: D2) In the 2-factor, 2 good Heckscher-Ohlin model, the two countries differ inA) tastes.B) m ilitary capabilities.C) s ize.D) relative availabilities of factors of production.E) l abor productivities.Answer: D3) The Heckscher-Ohlin model differs from the Ricardian model of Comparative Advantage in that the formerA) has only two countries.B) h as only two products.C) h as two factors of production.D) has two production possibility frontiers (one for each country).E) N one of the above.Answer: C4) "A good cannot be both land- and labor-intensive." Discuss.Answer: In a two good, two factor model, such as the original Heckscher-Ohlin framework, the factorintensities are relative intensities. Hence, the relevant statistic is either workers per acre (or acres perworker); or wage per rental unit (or rental per wage). In order to illustrate the logic of the statementabove, let us assume that the production of a broom requires 4 workers and 1 acre. Also, let us assumethat the production of one bushel of wheat requires 40 workers and 80 acres. In this case the acres perperson required to produce a broom is one quarter, whereas to produce a bushel of wheat requires 2acres per person. The wheat is therefore (relatively) land intensive, and the broom is (relatively) laborintensive.5) "No country is abundant in everything." Discuss.Answer: The concept of relative (country) factor abundance is (like factor intensities) a relative concept. When we identify a country as being capital intensive, we mean that it has more capital per worker than doesthe other country. If one country has more capital worker than another, it is an arithmeticimpossibility that it also has more workers per unit capital.6) Refer to above figure. Can you guess which group of producers in Country P might lobby against free trade?Answer:In Country P, the owners of the relatively scarce factor of production are the owners of capital. Their relative and real incomes will decrease, and so they may well attempt to lobby for protectionism, which may prevent the country from moving to a free trade equilibrium.An Economy can produce good 1 using labor and capital and good 2 using labor and land. The total supply of labor is 100 units. Given the supply of capital, the outputs of the two goods depends on labor input as follows:7) Refer to the table above.(a) Graph the production functions for good 1 and good 2(b) Graph the production possibility frontier. Why is it curved?Answer: The production possibility frontier is curved because of the diminishing returns associated with the expansion of output in the short run in each of the two industries.8) In the 2-factor, 2 good Heckscher-Ohlin model, a change from autarky (no trade) to trade will benefit theowners ofA) capital.B) t he relatively abundant factor of production.C) t he relatively scarce factor of production.D) the relatively inelastic factor of production.E) t he factor of production with the largest elasticity of substitution.Answer: B9) According to the Heckscher-Ohlin model, the source of comparative advantage is a country'sA) technology.B) a dvertising.C) h uman capital.D) factor endowments.E) B oth A and B.Answer: D10) The Hechscher-Ohlin model states that a country will have a comparative advantage in the good or servicewhose production is relatively intensive in the ________ with which the country is relatively abundant.A) tastesB) t echnologyC) f actor of productionD) opportunity costE) s cale economyAnswer: C11) According to the Hecksher-Ohlin model,A) everyone automatically gains from trade.B) t he scarce factor necessarily gains from trade.C) t he gainers could compensate the losers and still retain gains.D) a country gains if its exports have a high value added.E) N one of the above.Answer: CAssume that only two countries, A and B, exist.12) Refer to the table above. If good S is capital intensive, then following the Heckscher-Ohlin Theory,A) country A will export good S.B) c ountry B will export good S.C) b oth countries will export good S.D) trade will not occur between these two countries.E) I nsufficient information is given.Answer: B13) In international-trade equilibrium in the Heckscher-Ohlin model,A) the capital rich country will charge less for the capital intensive good than the price paid by the capitalpoor country for the capital-intensive good.B) t he capital rich country will charge the same price for the capital intensive good as that paid for it bythe capital poor country.C) t he capital rich country will charge more for the capital intensive good than the price paid by the capitalpoor country for the capital-intensive good.D) the workers in the capital rich country will earn more than those in the poor country.E) t he workers in the capital rich country will earn less than those in the poor country.Answer: B14) The Heckscher-Ohlin model predicts all of the following exceptA) which country will export which product.B) w hich factor of production within each country will gain from trade.C) t he volume of trade.D) that wages will tend to become equal in both trading countries.E) N one of the above.Answe: C15) If Australia has relatively more land per worker, and Belgium has relatively more capital per worker, then iftrade were to open up between these two countries,A) the relative price of the capital-intensive product would rise in Australia.B) t he world price of the land-intensive product would be higher than it had been in Belgium.C) t he world price of the land intensive product would be higher than it had been in Australia.D) the relative price of the land intensive product would rise in Belgium.E) N one of the above.Answer: C16) If Australia has more land per worker, and Belgium has more capital per worker, then if trade were to openup between these two countries,A) the real income of capital owners in Australia would rise.B) t he real income of labor in Australia would clearly rise.C) t he real income of labor in Belgium would clearly rise.D) the real income of landowners in Belgium would fall.E) t he real incomes of capital owners in both countries would rise.Answer: D17) The reason trade clearly benefits a country is thatA) it raises the real income of the more productive elements in society.B) i t lowers the real income of the less productive elements in society.C) i t increases the levels of consumption of everyone.D) it increases society's consumption choices.E) N one of the above.Answer: D18) International trade leads to complete equalization of factor prices. Discuss.Answer: This statement is typically "true . . . but." Under a strict and limited set of assumptions, such as the original Heckscher-Ohlin model which excludes country specific technologies; non- homothetic tastes;factor intensity reversals; large country differences in (relative) factor abundances, more factors thangoods, and an equilibrium solution within the "cone of specialization"; then it may be demonstratedthat internal consistency demands that the above stated sentence is "true." However, the minute onerelaxes any of the above listed assumptions one may easily identify solutions, which contradict thefactor price equalization theorem.19) Starting from an autarky (no-trade) situation with Heckscher-Ohlin model, if Country H is relatively laborabundant, then once trade beginsA) wages and rents should rise in H.B) w ages and rents should fall in H.C) w ages should rise and rents should fall in H.D) wages should fall and rents should rise in H.E) N one of the above.Answer: C20) According to the Heckscher-Ohlin model, if the United States is richly endowed in human-capital relative toMexico, then as NAFTA increasingly leads to more bilateral free trade between the two countries,A) the United States will find its industrial base sucked into Mexico.B) M exico will find its relatively highly skilled workers drawn to the United States.C) t he wages of highly skilled U.S. workers will be drawn down to Mexican levels.D) the wages of highly skilled Mexican workers will rise to those in the United States.E) t he wages of highly skilled Mexican workers will fall to those in the United States.Answer: E21) International trade has strong effects on income distributions. Therefore, international tradeA) is beneficial to everyone in both trading countries.B) w ill tend to hurt one trading country.C) w ill tend to hurt some groups in each trading country.D) will tend to hurt everyone in both countries.E) w ill be beneficial to all those engaged in international trade.Answer: C22) Groups that lose from trade tend to lobby the government toA) shift the direction of comparative advantage.B) a bolish the Specific Factor model from practical application.C) p rovide public support for the relatively efficient sectors.D) provide protection for the relatively inefficient sectors.E) N one of the above.Answer: D23) The Leontieff ParadoxA) supported the validity of the Ricardian theory of comparative advantage.B) s upported the validity of the Heckscher-Ohlin model.C) f ailed to support the validity of the Ricardian theory.D) failed to support the validity of the Heckscher-Ohlin model.E) p roved that the U.S. economy is different from all others.Answer: D24) The Leontieff ParadoxA) refers to the finding that U.S. exports were more labor intensive than its imports.B) r efers to the finding that U.S. Exports were more capital intensive than its exports.C) r efers to the finding that the U.S. produces outside its Edgeworth Box.D) still accurately applies to today's pattern of U.S. international trade.E) r efers to the fact that Leontieff an American economist had a Russian name.Answer: AAnswers to TextbookProblems 2. a. The box diagram has 600 as the length of two sides (representing labor)and 60 as the length of the other two sides (representing land). There will be a ray fromeach of the two corners representing the origins. To find the slopes of these rays we usethe information from the question concerning the ratios of the production coefficients.The question states that a LC/a TC= 20 and a LF/a TF= 5.Since a LC/a TC= (L C/Q C)/(T C/Q C) =L C/T C we have L C= 20T C. Using the samereasoning, a LF/a TF= (L F/Q F)/(T F/Q F) =L F/T F and since this ratio equals 5, we have L F= 5T F. We can solve this algebraically since L=L C+ L F= 600 and T=T C+ T F= 60.The solution is L C= 400, T C= 20, L F= 200 and T F= 40.b. The dimensions of the box change with each increase in available labor, but theslopes of the rays from the origins remain the same. The solutions in the different casesare as follows.L= 800: T C= 33.33, L C= 666.67, T F= 26.67, L F= 133.33L= 1000: T C= 46.67, L C= 933.33, T F= 13.33, L F= 66.67L= 1200: T C= 60, L C= 1200, T F= 0, L F= 0. (completespecialization).c. At constant factor prices, some labor would be unused, so factor prices wouldhave to change, or there would be unemployment.。