搜索
ExercisesforInternationalTrade:Chapter2Autumn,20091C1.Themercantilistswouldhaveobjectedto:a.Exportpromotionpoliciesinitiatedbythegovernmentb.Theuseoftariffsorquotastorestrictimportsc.Tradepoliciesdesignedtoaccumulategoldandotherpreciousmetalsd.InternationaltradebasedonopenmarketsC2.UnlikeAdamSmith,DavidRicardo'stradingprincipleemphasizesthe:a.Demandsideofthemarketb.Supplysideofthemarketc.Roleofcomparativecostsd.RoleofabsolutecostsA3.Accordingtotheprincipleofcomparativeadvantage,specializationandtradeincreaseanation'stotaloutputsince:a.Resourcesaredirectedtotheirhighestproductivityb.Theoutputofthenation'stradingpartnerdeclinesc.Thenationcanproduceoutsideofitsproductionpossibilitiescurved.TheproblemofunemploymentiseliminatedB4.Inatwo-product,two-countryworld,internationaltradecanleadtoincreasesin:a.Consumerwelfareonlyifoutputofbothproductsisincreasedb.Outputofbothproductsandconsumerwelfareinbothcountriesc.Totalproductionofbothproducts,butnotconsumerwelfareinbothcountriesd.Consumerwelfareinbothcountries,butnottotalproductionofbothproductsD??5.UsingthedatainTable2.1,answerthequestion(s).Table2.1.OutputPossibilitiesfortheU.S.andtheU.K.OutputperWorkerperDayCountryTonsofSteelTelevisionsUnitedStates545UnitedKingdom1020RefertoTable2.1.TheUnitedKingdomgainsmostfromtradeif:a.1tonofsteeltradesfor2televisionsb.1tonofsteeltradesfor3televisionsc.2tonsofsteeltradefor4televisionsExercisesforInternationalTrade:Chapter2Autumn,20092d.2tonsofsteeltradefor5televisionsD6.Increasingopportunitycostssuggestthat:a.Resourcesarenotperfectlyshiftablebetweentheproductionoftwogoodsb.Resourcesarefullyshiftablebetweentheproductionoftwogoodsc.Acountry'sproductionpossibilitiescurveappearsasastraightlined.Acountry'sproductionpossibilitiescurveisbowedinward(i.e.,convex)inappearanceC7.Assumingincreasingcostconditions,tradebetweentwocountrieswouldnotbelikelyiftheyhave:a.Identicaldemandconditionsbutdifferentsupplyconditionsb.Identicalsupplyconditionsbutdifferentdemandconditionsc.Differentsupplyconditionsanddifferentdemandconditionsd.IdenticaldemandconditionsandidenticalsupplyconditionsD8.UsethedatainTable2.2toanswerthequestion(s).Table2.2.OutputPossibilitiesforSouthKoreaandJapanOutputperWorkerperDayCountryTonsofSteelVCRsSouthKorea8040Japan2020RefertoTable2.2.TheopportunitycostofoneVCRinSouthKoreais:a.tonofsteelb.1tonofsteelc.1tonsofsteeld.2tonsofsteelB9.UsethedatainTable2.2toanswerthequestion(s).Table2.2.OutputPossibilitiesforSouthKoreaandJapanRefertoTable2.2.Accordingtotheprincipleofabsoluteadvantage,Japanshould:a.Exportsteelb.ExportVCRsc.ExportsteelandVCRsExercisesforInternationalTrade:Chapter2Autumn,20093d.Noneoftheabove;thereisnobasisforgainfultradeD10.UsethedatainTable2.2toanswerthequestion(s).Table2.2.OutputPossibilitiesforSouthKoreaandJapanRefertoTable2.2.Withinternationaltrade,whatwouldbethemaximumamountofsteelthatSouthKoreawouldbewillingtoexporttoJapaninexchangeforeachVCR?a.tonofsteelb.1tonofsteelc.1tonsofsteeld.2tonsofsteel11.Iftheinternationaltermsoftradesettleatalevelthatisbetweeneachcountry'sopportunitycost:a.Thereisnobasisforgainfultradeforeithercountryb.Bothcountriesgainfromtradec.Onlyonecountrygainsfromtraded.Onecountrygainsandtheothercountrylosesfromtrade12.Internationaltradeisbasedonthenotionthat:a.Differentcurrenciesareanobstacletointernationaltradeb.Goodsaremoremobileinternationallythanareresourcesc.Resourcesaremoremobileinternationallythanaregoodsd.Acountry'sexportsshouldalwaysexceeditsimports13.UsethegraphshowninFigure2.1toanswerthequestion(s).Figure2.1.ProductionPossibilitiesScheduleExercisesforInternationalTrade:Chapter2Autumn,20094RefertoFigure2.1.Therelativecostofaluminumintermsofsteelis:a.4.0tonsb.2.0tonsc.0.5tonsd.0.25tons14.Whenanationachievesautarkyequilibrium:a.Inputpriceequalsfinalproductpriceb.Laborproductivityequalsthewageratec.Importsequalexportsd.Productionequalsconsumption15.AccordingtoRicardo,acountrywillhaveacomparativeadvantageintheproductinwhichits:a.Laborproductivityisrelativelylowb.Laborproductivityisrelativelyhighc.Labormobilityisrelativelylowd.Labormobilityisrelativelyhigh16.TheRicardianmodelofcomparativeadvantageisbasedonallofthefollowingassumptionsexcept:a.Onlytwonationsandtwoproductsb.Productqualityvariesamongnationsc.Laboristheonlyfactorofproductiond.Laborcanmovefreelywithinanation17.Introducingindifferencecurvesintoourtrademodelpermitsustodetermine:ExercisesforInternationalTrade:Chapter2Autumn,20095a.Whereanationchoosestolocatealongitsproductionpossibilitiescurveinautarkyb.Thepreciselocationofanation'sproductionpossibilitiescurvec.Whetherabsolutecostorcomparativecostconditionsexistd.Thecurrencypriceofoneproductintermsofanotherproduct18.Tradebetweentwonationswouldnotbepossibleiftheyhave:a.Identicalcommunityindifferencecurvesbutdifferentproductionpossibilitiescurvesb.Identicalproductionpossibilitiescurvesbutdifferentcommunityindifferencecurvesc.Differentproductionpossibilitiescurvesanddifferentcommunityindifferencecurvesd.Identicalproductionpossibilitiescurvesandidenticalcommunityindifferencecurves19