I. Multiple choices. (20 points)
1.With increasing costs, even if two nations have identical production possibility frontiers (which is unlikely), there will still be a basis for mutually beneficial trade if tastes in two nations differ.
a. The nation with the relatively smaller preference for a commodity (X) will have a comparative disadvantage in X.
b. The nation with the relatively smaller preference for a commodity (X) will have a comparative advantage in commodity (Y).
c. The nation with the relatively smaller preference for a commodity (X) will have a comparative advantage in X.
d. The nation with the relatively smaller preference for a commodity (Y) will have a comparative disadvantage in Y.
2. Which statement is not correct?
a. According to Adam Smith, trade is base on absolute advantage and benefits both nations.
b. According to David Ricardo, even if one nation is less efficient than the other nation in the production of both commodities, there is still a basis for mutually beneficial trade.
c. According to the mercantilists, a nation could gain in international trade only at the expense of other nations.
d. According to the Heckscher-Ohlin theory, factors of production can be moved among the nations.
3. If with one hour of labor time nation A can produce either 3X or 3Y while nation B can produce either 1X or 3Y (and labor is the only input)，the range of mutually beneficial trade between nation A and B is:
a. 3Y < 3X < 5Yb. 5Y < 3X < 9Yc. 3Y < 3X < 9Yd. 1Y < 3X < 3Y
4.In a closed economy without a government sector, if the marginal propensity to consume (MPC) is 3/4, the multiplier (k) will be
a. 1/4 b. 4 c. 4/3 d. 3
5. Which of the following is not true for a nation that is in equilibrium in isolation?a. It consumes inside its production frontierb. it reaches the highest indifference curve possible with its production frontierc. the indifference curve is tangent to the nation's production frontierd. MRT of X for Y equals MRS of X for Y, and they are equal to Px/Py
6. If the nominal tariff rate on consumers of the final commodity is 10%; the nominal tariff rate on the imported input is 5%; the ratio of the cost of the imported input to the price of the final commodity in the absence of tariffs is 80%, the rate of effective protection to producers of the final commodity will bea. 50% b. 30% c. 20% d. 40%
7. Which is not a dynamic benefit from the formation of a customs union?
a. increased competition
b. economies of scale
c. stimulus to investment
d. trade creation
8. The imposition of an import tariff by a large nationa. increases the nation’s terms of tradeb. reduces the volume of trade C. may increase or reduce the nation’s welfared. all of the above
5. 本站不保证提供的下载资源的准确性、安全性和完整性, 同时也不承担用户因使用这些下载资源对自己和他人造成任何形式的伤害或损失。