Chapter 5 The Standard Trade Model
Multiple Choice Questions
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 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: C
2. 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) 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: B
3. Tastes of individuals are represented by
(a) the production possibility frontier. (b) the isovalue 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) the terms of trade of all countries improve. (e) None of the above Answer: B 5. If P
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C
/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 food exports. (d) Both (a) and (c). (e) None of the above. Answer: B
6. If PC/PF were to increase,
(a) world relative quantity of cloth supplied and demanded would increase. (b) world relative quantity of cloth supplied and demanded would decrease. (c) world relative quantity of cloth supplied would increases. (d) world relative quantity of cloth demanded would decrease. (e) None of the above. Answer: C
7. 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) imbalanced growth. Answer: A
8. 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. Answer: D
9. Immiserizing growth is
(a) likely to occur if the exporting country is poor. (b) likely to occur if the exporting country is rich. (c) likely to occur when terms of trade change. (d) likely to occur if relative supplies are elastic. (e) None of the above.
Answer: E
10. If the U.S. Agency for International Development transfers funds to poor
countries in Sub-Saharan Africa, this must
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(a) 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: E
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 terms of trade of both donor and recipient countries. (e) None of the above. Answer: B
12. If the U.S. has a higher marginal propensity to consume (MPC) imports as
compared to both its MPC for exportables and nontradables, 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 terms of trade of both donor and recipient countries. (e) None of the above. Answer: B
13. 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. (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
14. If the U.S. (a large country) imposes a tariff on its imported good, this will
(a) have no effect on economic welfare. (b) improve the terms of trade of all countries. (c) improve the economic welfare of the United States. (d) harm the economic welfare of U.S.’ trading partners. (e) None of the above
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国际经济学作业答案-第五章
