单选题

 

1、If scale economies are small and product differentiation is possible then which market structure is able to arise?（  B）

A.    oligopoly

B.     monopolistic competition

C.     monopoly

D.    perfect competition

2、Specialization in production is _______ with _______.（  B）

A.     incomplete; constant costs

B.      incomplete; increasing costs

C.      variable; constant costs

A.     complete; increasing costs

3、If the U.S. has a comparative advantage in the production of corn (land-intensive) and has a comparative disadvantage in the production of textiles (labor-intensive), in the long-run, landowners in which sectors would gain? （ A ）

A. corn                    B. textiles 

C. both                    D. neither

4、If a country's endowment of labor increases and cloth production is relatively more labor-intensive than corn production, then according to the Rybczynski theorem, the production possibilities curve will shift outward along:（  A）

A.    the cloth axis            B. the corn axis  

C. both axes                D. neither axis

5、When airlines in the United States purchase Airbus airplanes and airlines in France purchase Boeing airplanes, this is called:（C  ）

A.    internal scale economies    B. the Leontief Paradox

C.     intra-industry trade        D. product differentiation

6、When an import quota is imposed and import licenses are auctioned off, the revenue effect of the quota goes to: （  C）

A.    domestic producers

B.     domestic consumers

C.     the government

D.    foreign producers

7、Benefits of a tariff on an imported good usually accrue to:（ D ）

A. foreign consumers    B. domestic consumers 

C. foreign producers    D. domestic producers

8、The lifting of a voluntary export restraint (VER) would benefit all of the following except:（B  ）

A.    domestic consumers

B.     foreign producers

C.     domestic producers

D.    all of the above

9、Governments in developing countries will impose tariffs because: （ C ）

A.    tariffs are the best way to protect domestic jobs

B.     tariffs are the best way to show the rest of the world that the government is stable

C.     tariffs are often the cheapest and most effective means available of generating government revenues

D.    tariffs are the only way to promote domestic production in most developing countries

10、If the objective of government policy is to redistribute incomes, the best policy strategy would be to:（ C ）

A.    impose a tariff that favors disadvantaged groups

B.     impose an import quota that favors disadvantaged groups

C.     address the problem directly with taxes and transfer payments and not with trade policy

D.    do nothing

11、For persistent dumping to be successful, firms will maximize profits by（ A ）

A. charging a higher price in the more inelastic market.

B. only selling in the more inelastic market

C. charging the same price in both markets

D. charging a higher price in the less elastic market

12、As a result of joining a trade bloc, Country A finds that it is purchasing relatively more expensive cars from Country B, a fellow bloc member, rather than purchasing the less expensive cars from Country C, a bloc outsider. This phenomenon is called:（B  ）

A. trade creation            B. trade diversion

C. a trade embargo          D. trade lifting

13、If a country has a no policy towards pollution, international trade will make the country __________ than without trade.（  B  ）

A．better off

B．worse off

C．neither better off nor worse off

D．more hostile

14、If workers are migrating from Country A to Country B, then workers in Country A _______ and producers in Country A _______.（  C）

A. lose; lose        B. lose; gain 

C. gain; lose        D. gain; gain

15、Multinationals are most likely to choose sites for direct foreign investment where:（  A ）

A．taxes are low

B．labor costs are higher

C．there is easy access to deep water ports

D．there are other firms already producing the same good

1、If the U.S. has a comparative advantage in the production of corn (land-intensive) and has a comparative disadvantage in the production of textiles (labor-intensive), in the short-run, landowners in which sectors would gain?（A  ）

A. corn                    B. textiles 

C. both                    D. neither

2、China is relatively labor-abundant and Australia is relatively land-abundant. Textiles are relatively more labor-intensive than the production of wool. According to Heckscher-Ohlin (H-O) theory, Australia will have:（ C ）

A.     a comparative advantage in textiles

B.      an absolute advantage in textiles

C.      a comparative advantage in wool

D.     an absolute advantage in wool

3、Which countries are most likely to participate in intra-industry trade?（A  ）

A.    countries with high incomes

B.     developing and developed countries

C.     eastern and western countries

D.    developing countries

4、If scale economies are small and product differentiation is possible then which market structure is able to arise?（ B ）

B.     oligopoly      B. monopolistic competition

D.    monopoly      D. perferct competition

5、 If a country has recently discovered diamonds in its hinterland and profits and production in traded manufactured goods sectors declines, then we could say that the country:（ D ）

A. has balanced growth     B. is small 

C. is large                D. has "Dutch Disease"

6、Benefits of a tariff on an imported good usually accrue to:（ D ）

A. foreign consumers    B. domestic consumers 

C. foreign producers    D. domestic producers

7、When an import quota is imposed and import licenses are auctioned off, the revenue effect of the quota goes to:（  C）

A. domestic producers  B. domestic consumers 

C. the government     D. foreign producers

8、If the car industry in Botswana requests tariff protection because their costs will be temporarily high until the industry is better established, the car industry is using the:（ B   ）

A、specificity rule

B、infant industry argument

C、externalities argument

D、the "second best" rule

9、If the objective of government policy is to protect an industry for national defense purposes, the best policy strategy would be to:（ D ）

A.     impose a tariff on imports that compete with the domestic industry's product

B.      impose an import quota on imports that compete with the domestic industry's product

C.      do nothing

D.     provide subsidies to the strategic industry

10、There are the two ways to promote import-competing production-- a subsidy or a tariff. The tariff and subsidy are the same except that:（  B ）

A.     the tariff will cause a production effect while the subsidy does not

B.      the tariff will cause a consumption effect while the subsidy does not

C.      the tariff will be less costly than the subsidy

D.     the tariff will produce a smaller effect on import consumption in the long run

11、One of the few arguments which Adam Smith saw as valid for the use of trade protection was:I（ D   ）

A、the infant industry argument.

B、the domestic production argument

C、the income redistribution argument

D、the national defense argument

12、The success of Asian apparel exports to the United States and Europe

 lies in:（   C ）

A.     a great productivity failure in the United States and European Union.

B.      the fact that apparel uses capital intensively and the United States is not relatively abundant in capital.

C.      the fact that apparel uses unskilled labor intensively and Asia is relatively abundant in that factor.

D.     that Asian countries provide export subsidies to the apparel manufacturers in their countries.

13、If a country expects that the trade diversion effect will dominate the trade creation effect if they join a customs union with a neighbor, they should:（   A ）

A、not join the customs union

B、join the customs union, but not join any proposed monetary union between the countries

C、join the customs union, but only if the other country is larger

D、join the customs union, but only if the other country is smaller

14、As a result of joining a trade bloc, Country A finds that it is purchasing relatively more expensive cars from Country B, a fellow bloc member, rather than purchasing the less expensive cars from Country C, a bloc outsider. This phenomenon is called:（ B ）

A. trade creation       B.trade diversion 

C.a trade embargo      D.trade lifting

15、Multinationals are most likely to choose sites for direct foreign investment where:（  A ）

A、taxes are low

B、labor costs are higher

C、there is easy access to deep water ports

D、there are other firms already producing the same good

 

判断

1.        Heckscher-Ohlin theory predicts that countries will export those goods in which the country has an absolute advantage.（F ）       

2.        In the short-run, consumers of import-competing goods and producers of exportable goods lose from free trade.（ F）

3.        Oligopoly arises as a result of internal scale economies.（ T）

4.        Immiserizing growth is characterized by improved economic welfare that results from increased openness and improved terms of trade.（F ）

5.        The specificity rule says that policy measures that are most directly related to the gap between private and social incentives are best.（T ）

6.        All countries are barred from using export subsidies under WTO rules.（F ）

7.        A country's economic welfare will increase as a result of forming a customs union if trade creation exceeds trade diversion. （  T）

8.        Rules of origin are important to free-trade areas, but less so to customs unions.（ T）

9.        Overfishing and global warming have been effectively combated with international agreements.（ F）

10.     A country can increase the benefits it receives from migration by giving preference to young, educated, skilled adults over other people.（T ）

11.    In a two-country, two-good model, a production-possibility curve is insufficient to predict the amount of the two goods that will be traded.（ T  ）

12.    The factor-price equalization theory predicts that trade will equalize a factor's rate of pay in all countries regardless of whether the factor can move between countries（  F ）

13.    With monopolistic trade, consumers of the exported good in the exporting country will lose as a result of trade.（ T ）

14.    If economic growth results in a large country becoming more willing to trade, the relative price of the country's export good increases.（ F   ）

15.    It is possible for economic welfare in a small country to increase as a result of it imposing a tariff. （  F ）

16.    A voluntary export restraint has the same effects on economic welfare as a tariff. （ F  ）

17.    The specificity rule says that policy measures that are most directly related to the gap between private and social incentives are best.（ T  ）

18.    An export subsidy expands exports and production of the subsidized Product.（  F ）

19.    A country's economic welfare will increase as a result of forming a customs union if trade creation exceeds trade diversion.（  T ）

20.    International migration results in competing workers in the new country and employers in the old country both losing.（ T  ）

 

                      名词解释

 

 

1、customs union   　　     2、immiserizing growth  

3、persistent dumping         4、direct foreign investment

5、terms of trade   　6、specific rate  

7、quota   　       8、voluntary export restraints

 http://s3/middle/4acd4df9n98c174e11ab2&690

 

 

                     看图分析题

 

 

1. What area represents consumer surplus before the tariff is imposed?

2. What area represents producer surplus before the tariff is imposed?

3. What area represents consumer surplus after the tariff is imposed?

4. What area represents producer surplus after the tariff is imposed?

5. What area represents the consumption effect of the tariff?

6. What area represents the production effect of the tariff?

7. What is the size of the change in producer surplus?

8. What is the size of the change in consumer surplus?

9. What is the total size of the dead weight losses?

10. What is the size of the government revenue from the tariff?

 

 

 

 

 

 

 

                    论述题

 

1、France has 30 million hours of labor in total per year. U.S. has 20 million hours of labor per year.

	Labor hours per bottle of wine	Labor hours per bushel of wheat
France	15	10
U.S.	10	4

1) Which country has a comparative advantage in wine? In wheat?

2) When trade is opened, which country exports which good? If the equilibrium international price ratio is 1/2 bottle of wine per bushel of wheat, what happens to production in each country?

3) Does each country gain from free trade?

2、Australia has only one firm that makes aircraft. Without assistance from the government, that firm has lost most of its business to imports from the United States and Europe. Which of the following policies would be most costly for the Australian nation as a whole, and which would be least costly?

Policy A: Paying the lone Australian firm a production subsidy per plane, without protecting it against imports.

Policy B: Imposing a tariff equal to the production subsidy in policy A.

Policy C: Imposing an import quota that cuts imports just as much as policy B would.