国际经济学试题答案

rice of food.

D) the marginal product of labor in the production of cloth times the price of cloth.

E) the price of cloth divided by the marginal product of labor in the production of cloth.

7. In the specific factors model, which of the following will increase the quantity of labor used in cloth production?

A)an increase in the price of cloth relative to that of food B) an increase in the price of food relative to that of cloth C) a decrease in the price of labor

D) an equal percentage decrease in the price of food and cloth E) an equal percentage increase in the price of food and cloth

8. A country that does not engage in trade can benefit from trade only if A)it has an absolute advantage in at least one good. B) it employs a unique technology.

C) pre-trade and free-trade relative prices are not identical. D) its wage rate is below the world average.

E) pre-trade and free-trade relative prices are identical.

9. In the specific factors model, the effects of trade on welfare are ________ for mobile factors, ________ for fixed factors used to produce the exported good, and ________ for fixed factors used to produce the imported good. A)ambiguous; positive; negative B) ambiguous; negative; positive C) positive; ambiguous; ambiguous D) negative; ambiguous; ambiguous E) positive; positive; positive

10.The effect of trade on specialized employees of import-competing industries will be ________ jobs and ________ pay because they are relatively ________. A)fewer; lower; mobile B) fewer; lower; immobile C) more; lower; immobile D) more; higher; mobile E) more; higher; immobile

11. There is a bias in the political process against free trade because

A)there is a high correlation between the volume of imports and the unemployment rate.

B) the gains from free trade cannot be measured.

C) those who gain from free trade can't compensate those who lose.

D) foreign governments make large donations to U.S. political campaigns.

E) those who lose from free trade are better organized than those who gain.

12.In the 2-factor, 2 good Heckscher-Ohlin model, the two countries differ in A)tastes and preferences. B) military capabilities.

C) the size of their economies.

D) relative abundance of factors of production. E) labor productivities.

13. If a country produces good Y (measured on the vertical axis) and good X (measured on the horizontal axis), then the absolute value of the slope of its production possibility frontier is equal to

A)the opportunity cost of good X.

B) the price of good X divided by the price of good Y. C) the price of good X divided by the price of good Y. D) the opportunity cost of good Y.

E) the cost of capital (assuming that good Y is capital intensive) divided by the cost of labor.

14. In the 2-factor, 2 good Heckscher-Ohlin model, trade will ________ the owners of a country's ________ factor and will ________ the good that uses that factor intensively.

A)benefit; abundant; export B)harm; abundant; import C) benefit; scarce; export D) benefit; scarce; import E) harm; scarce; export

15. The assumption of diminishing returns in the Heckscher-Ohlin model means that, unlike in the Ricardian model, it is likely that

A) countries will consume outside their production possibility frontier. B) countries will benefit from free international trade.

C) countries will not be fully specialized in one product.

D) comparative advantage will not determine the direction of trade. E) global production will decrease under trade.

16.If Japan is relatively capital rich and the United States is relatively land rich, and if food is relatively land intensive then trade between these two, formerly autarkic countries will result in

A)an increase in the relative price of food in the U.S. B) an increase in the relative price of food in Japan. C) a global increase in the relative price of food.

D) a decrease in the relative price of food in both countries. E) an increase in the relative price of food in both countries.

17. Starting from an autarky (no-trade) situation with Heckscher-Ohlin model, if Country H is relatively labor abundant, then once trade begins A) rent will be unchanged but wages will rise in H. B) wages and rents should rise in H. C) wages and rents should fall in H.

D) wages should fall and rents should rise in H. E) wages should rise and rents should fall in H.

18.The Leontieff Paradox

A) failed to support the validity of the Heckscher-Ohlin model.

B) supported the validity of the Ricardian theory of comparative advantage. C) supported the validity of the Heckscher-Ohlin model. D) failed to support the validity of the Ricardian theory.

E) proved that the U.S. economy is different from all others.

19. Which of the following is an assertion of the Heckscher-Ohlin model?

A) Factor price equalization will occur only if there is costless mobility of all factors across borders.

B) An increase in a country's labor supply will increase production of both the capital-intensive and the labor-intensive good.

C) In the long-run, labor is mobile and capital is not.

D) The wage-rental ratio determines the capital-labor ratio in a country's industries.

E) Factor endowments determine the technology that is available to a country, which determines the good in which the country will have a comparative advantage.

20. Which of the following is an assertion of the Heckscher-Ohlin model?

A) An increase in a country's labor supply will increase production of the labor-intensive good and decrease production of the capital-intensive good.

B) An increase in a country's labor supply will increase production of both the capital-intensive and the labor-intensive good.

C) In the long-run, labor is mobile and capital is not.

D) Factor price equalization will occur only if there is costless mobility of all factors across borders.

E) Factor endowments determine the technology that is available to a country, which determines the good in which the country will have a comparative advantage.

Ch6-Ch10

1.If the ratio of price of cloth (PC) divided by the price of food (PF) increases in the international marketplace, then

A) the terms of trade of cloth exporters will improve. B) all countries would be better off.

C) the terms of trade of food exporters will improve. D) the terms of trade of all countries will improve.

E) the terms of trade of cloth exporters will worsen.

2.If the ratio of price of cloth (PC) divided by the price of food (PF) increases in the international marketplace, then

A) world relative quantity of cloth supplied will increase.

B) world relative quantity of cloth supplied and demanded will increase. C) world relative quantity of cloth supplied and demanded will decrease. D) world relative quantity of cloth demanded will decrease. E) world relative quantity of food will increase.

3.If the U.S. (a large country) imposes a tariff on its imported good, this will tend to A) have no effect on terms of trade.

B) improve the terms of trade of the United States. C) improve the terms of trade of all countries. D) because a deterioration of U.S. terms of trade.

E) raise the world price of the good imported by the United States.

4.If Slovenia were a large country in world trade, then if it instituted a large set of subsidies for its exports, this must

A) decrease its marginal propensity to consume. B) have no effect on its terms of trade. C) improve its terms of trade. D) harm its terms of trade.

E) harm world terms of trade.

5.Internal economies of scale arise when the cost per unit A) falls as the average firm grows larger. B) rises as the industry grows larger. C) falls as the industry grows larger. D) rises as the average firm grows larger.

E) remains constant over a broad range of output.

6. External economies of scale will ________ average cost when output is ________ by _______.

A) reduce; increased; the industry B) reduce; increased; a firm C) increase; increased; a firm

D) increase; increased; the industry E) reduce; reduce; the industry

7. If some industries exhibit internal increasing returns to scale in each country, we should not expect to see

A) perfect competition in these industries. B) intra-industry trade between countries.