1、精選文檔International Economics, 8e (Krugman) Chapter 5 The Standard Trade Model 1) The concept terms of trade means A) the amount of exports sold by a country. B) the price conditions bargained for in international markets. C) the price of a countrys exports divided by the price of its imports. D) the

2、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 where A) the isovalue line intersects the production possibility frontier. B) the isovalue line is tangent to the production possibility frontier. C) th

3、e 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: B 3) Tastes of individuals are represented by A) the production possibility frontier. B) the isovalue

4、line. C) the indifference curve. D) the production function. E) None of the above. Answer: C 4) If PC/PF were to increase in the international marketplace, then A) 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)

5、 the terms of trade of all countries improve. E) None of the above. Answer: B 5) If PC/PF 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 foo

6、d exports. D) Both A and C. E) None of the above. Answer: B 6) If a small country were to levy a tariff on its imports then this would A) have no effect on that countrys economic welfare. B) increase the countrys economic welfare. C) decrease the countrys economic welfare. D) change the terms of tra

7、de. E) None of the above. Answer: C 7) Suppose now that Home experiences growth strongly biased toward its export, cloth, A) this will tend to worsen Homes terms of trade. B) this will tend to improve Homes terms of trade. C) this will tend to worsen Foreigns terms of trade. D) this will have no eff

8、ect on Foreigns terms of trade. E) None of the above. Answer: A 8) Suppose that Home is a small country, and it experiences growth strongly biased toward its export, cloth A) this will tend to worsen Homes terms of trade B) this will tend to improve Homes terms of trade C) this will tend to worsen F

9、oreigns terms of trade D) this will have no effect on Foreigns terms of trade E) None of the above Answer: D 9) When the production possibility frontier shifts out relatively more in one direction, we have A) biased growth. B) unbiased growth. C) immiserizing growth. D) balanced growth. E) imbalance

10、d growth. Answer:D 10) Export-biased growth in Country H will A) 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.

11、 Answer: D 11) If the poor USAID recipient countries have a higher marginal propensity to consume each and every product than does the United States, then such aid will A) 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

12、terms of trade of both donor and recipient countries. E) None of the above. Answer: B 12) If, beginning from a free trade equilibrium, the (net barter) terms of trade improve for a country, then it will A) increase production of its import competing good. B) increase consumption of its export good.

13、C) increase the quantity of its imports. D) experience an export-biased shift in its production possibility frontier. E) None of the above. Answer: C 13) After WWI, Germany was forced to make large reparations-transfers of real income- to France. If the marginal propensity to consume was equal in bo

14、th countries, and if Frances demand was biased toward food (relative to Germanys demand pattern) then we would expect to find A) the worlds relative price for food remains unchanged. B) the worlds relative price for food increase. C) the worlds relative price for food decrease. D) the world relative

15、 price for both food and non-food rise. E) None of the above. Answer: B 14) During the 19th Century, economic growth of the major trading countries was biased toward manufactures and away from food. The less developed countries of that time were net exporters of food. From this information, we would

16、 expect to have observed A) 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. An

17、swer: B 15) Immiserizing growth could occur to A) 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

18、) None of the above. Answer: A 16) A large country experiencing import-biased economic growth will tend to experience A) 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 interna

19、tional loans or capital flows, then if a countrys terms of trade improve, we would find that A) 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 quantit

20、y of its exports equals that of its imports. E) None of the above. Answer: C 18) 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 to A) worsen the U.S. t

21、erms 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: A 19) If a countrys growth is biased in favor of its import, this should unequivocally improve its

22、 terms of trade 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 major growth in its components manufacture sector. Sinc

23、e Japan is internationally a large country in these markets, this would tend to hurt its component suppliers terms of trade (and help Japans). 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 a

24、n importer of final goods. If the result is a lessening of specialization and of the volume of trade, then this effect will lower Japans welfare associated with gains from trade. If an actual change in the pattern of comparative advantage occurs (a possibility) this may cause dynamic dislocations wh

25、ose harm overpowers static gains for a relatively long period of time. 20) At the conclusion of World War I, Germany, as a punishment, was obliged to make a large transfer to France in the form of reparations. Is it possible that the actual reparations may have improved Germanys economic welfare? An

26、swer: Such a result is not likely. However, theoretically, if Frances income elasticity of demand for Germanys exports was higher than Germanys income elasticity of demand for its own exportable, then the real income transfer associated with these reparations may have improved Germanys terms of trad

27、e, and improved its balance of payments, thus helping Germany in manner unanticipated in the Treaty of Verssaille. Explain. 21) 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 all countries.

28、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: C 22) If Slovenia is a small country in world trade terms, then if it imposes a large series of tariffs on many of its impo

29、rts, this would A) 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: A 23) If Slovenia were a large country in world trade, then if it instituted a large set of subsidi

30、es for its exports, this must A) 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: C 24) If Slovenia were a large country in world trade, then if it instituted a large

31、set of subsidies for its exports, this must A) cause retaliation on the part of its trade partners. B) harm Slovenias real income. C) improve Slovenias real income. D) improve the real income of its trade partners. E) None of the above. Answer: D 25) An export subsidy has the opposite effect on term

32、s of trade to the effect of an import tariff. Domestically a tariff 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. Hen

33、ce 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 countrys terms of trade. An e

34、xport subsidy on the other hand will in fact lower the international price of the (now readily available) export good, hence hurting a countrys terms of trade. 26) Suppose, as a result of various dynamic factors associated with exposure to international competition, Albanias economy grew, and is now

35、 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 be export-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 Albanias 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 poss