QN=1 (2563) (4366) How many dollars would it cost to buy an Edinburgh Woolen Mill sweater costing 50 British pounds if the exchange rate is 1 25 dollars per one British pound? a 62 5 dollars b 50 doll.
Trang 1QN=1 (2563) (4366) How many dollars would it cost to buy an Edinburgh Woolen Mill sweater
costing 50 British pounds if the exchange rate is 1.25 dollars per one British pound?
a cannot sell additional quantity unless it raises the price on each unit
b will always earn a profit in the long run
c can sell as much as it wants for any price it determines in the market
d will never sell a product whose demand is inelastic at the quantity sold
e cannot determine the price, which is determined by consumer demand
[id=2566, Mark=1]2 D
QN=3 (2570) (4374) Which of the following statements is the MOST accurate? The law of one price
states
a in competitive markets free of transportation costs and official barrier to trade,
identical goods sold in different countries must sell for the same price
b in competitive markets free of transportation costs and official barriers to trade,
identical goods sold in different countries must sell for the same price when their prices are expressed in terms of the same currency
c in competitive markets free of official barrier to trade, identical goods are sold at the
same price regardless of transportation costs
d identical goods sold in different countries must sell for the same price when their
prices are expressed in terms of the same currency
e in competitive markets free of transportation costs and official barrier to trade,
identical goods sold in the same country must sell for the same price when their prices are expressed in terms of the same currency
[id=2570, Mark=1]3 B
QN=4 (2577) (4375) Which of the following statements is the MOST accurate? The law of one price
states
a in competitive markets free of transportation costs and official barrier to trade,
identical goods sold in different countries must sell for the same price
b in competitive markets free of transportation costs and official barriers to trade,
identical goods sold in different countries must sell for the same price when their prices are expressed in terms of the same currency
c in competitive markets free of official barrier to trade, identical goods are sold at the
same price regardless of transportation costs
d identical goods sold in different countries must sell for the same price when their
prices are expressed in terms of the same currency
e in competitive markets free of transportation costs and official barrier to trade,
Trang 2identical goods sold in the same country must sell for the same price when their prices are expressed in terms of the same currency.
[id=2577, Mark=1]4 B
QN=5 (2592) (4355) Which of the following could explain why the terms of trade of developing
countries might deteriorate over time?
a Developing country exports consist mainly of manufactured goods
b Commodity export prices are solely determined by developing countries
c Commodity export prices are determined in highly competitive markets
d Developing country exports are too diverse
e Developing country exports consist mainly of primary products
[id=2592, Mark=1]5 C
QN=6 (2586) (4356) Which trade strategy have developing countries used to restrict imports of
manufactured goods so that the domestic market is preserved for home producers?
QN=7 (2594) (4342) A country cannot produce a mix of products with a higher value than where
a the isovalue line is below the production possibility frontier
b the isovalue line is above the production possibility frontier
c the isovalue line intersects the production possibility frontier
d the isovalue line is tangent with the indifference curve
e the isovalue line is tangent to the production possibility frontier
[id=2594, Mark=1]7 E
QN=8 (2614) (4334) From 1960 to 2012
a the share of US Trade in the global economy roughly tripled in size
b U.S exports roughly tripled in size
c U.S Imports roughly tripled as compared to U.S exports
d U.S imports roughly tripled in size
e the U.S economy roughly tripled in size
[id=2614, Mark=1]8 A
QN=9 (2615) (4569) The optimum tariff is
a the tariff, which maximizes the terms of trade gains
b not practical for a large country due to the likelihood of retaliation
c not practical for a small country due to the likelihood of retaliation
d the best tariff a country can obtain via a WTO negotiated round of compromises
e the tariff, which maximizes the difference between terms of trade gains and terms of
Trang 3trade loses.
[id=2615, Mark=1]9 B
QN=10 (2612) (4362) A country's gross national product (GNP) is
a the value of all final goods produced by its factors of production and sold on the
market in a given time period
b the value of all final goods and services produced by its factors of production,
excluding land, and sold on the market in a given time period
c the value of all final goods and services produced by its factors of production and sold
on the market
d the value of all final goods and services produced by its factors of production and sold
on the market in a given time period
e the value of all intermediate goods and services produced by its factors of production
and sold on the market in a given time period [id=2612, Mark=1]10 D
QN=11 (2603) (4339) In the 2-factor, 2 good Heckscher-Ohlin model, an influx of workers from
across the border would
a move the point of production along the production possibility curve
b shift the production possibility curve outward and decrease the production of the
QN=12 (2622) (4578) It is argued that high-tech industries typically generate new technologies but
cannot fully appropriate the commercial benefits associated with their inventions or discoveries If this is true then in order to maximize a country's real income, the government should
[id=2622, Mark=1]12 A
QN=13 (2618) (4558) Modeling trade in imperfectly competitive industries is problematic because
a collusion among imperfectly competitive firms makes usable data rare
b there are no models of imperfectly competitive behavior
c it is difficult to find an imperfectly competitive firm in the real world
d there is no single generally accepted model of behavior by imperfectly competitive
firms
e there is only a single model of imperfect competition (monopoly) but imperfect
competition can take many forms in the real world
[id=2618, Mark=1]13 D
Trang 4QN=14 (2634) (4559) The simultaneous export and import of widgets by the United States is an
QN=16 (2644) (4572) The imperfect capital market justification for infant industry promotion
a assumes that new industries will tend to have low profits
b assumes that infant industries will be in products of comparative advantage
c assumes that infant industries will soon mature
d assumes that developing country will reward the donor country
e assumes that banks can allocate resources efficiently
[id=2644, Mark=1]16 A
QN=17 (8622) (16017) In the 2-factor, 2 good Heckscher-Ohlin model, trade will the owners
of a country's factor and will the good that uses that factor intensively
[id=8622, Mark=1]17 D
QN=18 (8630) (16017) International trade has strong effects on income distributions Therefore,
international trade
a will tend to hurt everyone in both countries
b will tend to hurt one trading country
c will tend to hurt some groups in each trading country
d is beneficial to everyone in both trading countries
e will be beneficial to all those engaged in international trade
[id=8630, Mark=1]18 C
QN=19 (2647) (4552) If the ratio of price of cloth (PC) divided by the price of food (PF) increases in
the international marketplace, then
Trang 5b the cloth exporter will increase the quantity of cloth produced.
c the cloth exporter will increase the quantity of cloth exported
d the food exporter will increase the quantity of food exported
e the cloth exporter will decrease the quantity of cloth exported
[id=2647, Mark=1]19 B
QN=20 (2637) (4531) Theories of international economics from the 18th and 19th Centuries are
a not well understood by modern mathematically oriented theorists
b only of moderate relevance in today's modern international economy
c highly relevant in today's modern international economy
d the only theories that actually relevant to modern international economy
e not relevant to current policy analysis
[id=2637, Mark=1]20 C
QN=21 (2671) (15882) Who sells what to whom
a is determined by political rather than economic factors
b has been a major preoccupation of international economics
c is not a valid concern of international economics
d is not considered important for government foreign trade policy since such decisions
are made in the private competitive market
e is less important than international economic theory
[id=2671, Mark=1]21 B
QN=22 (8646) (16017) If one observes that Japan was traditionally a net foreign lender, one could
conclude that relative to its international trade and financial partners
a Japan's intertemporal production possibilities are biased toward present consumption
b Japan's intertemporal production possibilities are larger than that of the other
countries
c Japan's intertemporal production possibilities are not biased
d Japan's intertemporal production possibilities are biased toward future consumption
e Japan preferred to consume beyond its production in the present
[id=8646, Mark=1]22 A
QN=23 (8636) (16017) If two countries with diminishing returns and different marginal rates of
substitution between two products were to engage in trade, then
a the larger of the two countries would dominate their trade
b the shapes of their respective production possibility frontiers would change
c the opportunity costs for the smaller country would increase
d the country with relatively elastic supplies would export more
e the marginal rates of substitution of both would become equal
[id=8636, Mark=1]23 E
QN=24 (8638) (16017) If the ratio of price of cloth (PC) divided by the price of food (PF) increases in
the international marketplace, then
a world relative quantity of cloth supplied will increase
b world relative quantity of cloth demanded will decrease
Trang 6c world relative quantity of cloth supplied and demanded will increase.
d world relative quantity of food will increase
e world relative quantity of cloth supplied and demanded will decrease
[id=8638, Mark=1]24 A
QN=25 (2662) (4549) In the 2-factor, 2 good Heckscher-Ohlin model, the country with a relative
abundance of will have a production possibility frontier that is biased toward production of the good
[id=2662, Mark=1]25 B
QN=26 (2679) (15895) Since World War II, the likelihood that the job of a new college graduate will
be directly or indirectly affected by world trade
d fluctuated widely with no clear trend
e increased slightly before dropping off
[id=2679, Mark=1]26 B
QN=27 (2684) (15899) In order to know whether a country has a comparative advantage in the
production of one particular product we need information on at least unit labor requirements
a increase; increased; the industry
[id=8660, Mark=1]28 C
QN=29 (2705) (15927) In the 2-factor, 2 good Heckscher-Ohlin model, an influx of workers from
across the border would
a move the point of production along the production possibility curve
b shift the production possibility curve outward and decrease the production of the
capital-intensive product
Trang 7c shift the production possibility curve outward and decrease the production of the
a outsourcing increases international labor mobility
b restrictions on international labor mobility are common
c restrictions on international labor mobility are rare
d labor is far more mobile internationally than capital
e labor is far more mobile internationally than it is intra-nationally
[id=2694, Mark=1]30 B
QN=31 (2695) (15916) In the two-country model of international labor mobility
a the long-run equilibrium assumes that actual migration exceeds desired migration
b the long-run equilibrium is the result of a divergence of the real wages in the two
countries
c the long-run equilibrium assumes that desired migration exceeds actual migration
d the long-run equilibrium assumes countries' policies place significant restrictions on
migration
e the long-run equilibrium assumes that desired and actual migration are equal
[id=2695, Mark=1]31 E
QN=32 (2693) (15914) Immigration into the U.S over the past century has caused the percentage of
immigrants in the U.S population to
a fall steadily over the entire century
b rise steadily over the entire century
c fall steadily until the 1970s and increase thereafter
d remain relatively constant over the time period
e rise steadily until the 1970s and fall thereafter
[id=2693, Mark=1]32 C
QN=33 (2712) (15940) Terms of trade refers to
b the relative price at which trade occurs
c the tariffs applied to trade
[id=2712, Mark=1]33 B
QN=34 (2726) (15955) Tariff rates on products imported into the U.S
a were prohibited by the Constitution
b have risen steadily since 1920
c have dropped substantially over the past 50 years
Trang 8d were the government's main source of income in 2006.
e reached an all time high in 2002
[id=2726, Mark=1]34 C
QN=35 (8681) (16017) It is argued that special interest groups are likely to take over and promote
protectionist policies, which may lead to a decrease in national economic welfare This argument leads to
a a presumption that free trade is generally a second-best policy, to be avoided if
feasible alternatives are available
b a presumption that free trade is generally a second-best policy, to be avoided if
feasible alternatives are available
c a presumption that protectionist policies will better serve a country as a whole than
free trade policies
d a presumption that free trade is the likely equilibrium solution if the government
allows special interest groups to dictate its trade policy
e a presumption that in practice a free trade policy is likely to be better than
alternatives
[id=8681, Mark=1]35 E
QN=36 (8685) (16017) Protectionism tends to be concentrated in two sectors
b high-tech and national security sensitive industries
c industries concentrated in the South and in the Midwest of the country
d capital and skill intensive industries
e financial services and manufacturing based in the Midwest
[id=8685, Mark=1]36 A
QN=37 (2729) (15947) Specific tariffs are
a import taxes calculated based solely on the origin country
b import taxes calculated as a fraction of the value of the imported goods
d import taxes calculated as a fixed charge for each unit of imported goods
e import taxes stated in specific legal statutes
[id=2729, Mark=1]37 D
QN=38 (2747) (15977) Which trade strategy have developing countries used to restrict imports of
manufactured goods so that the domestic market is preserved for home producers?
QN=39 (2742) (15962) The optimum tariff is most likely to apply to
a a large tariff imposed by a large country
Trang 9b a large tariff imposed by a small country.
c an ad valorem tariff on a small country
d a small tariff imposed by a small country
e a small tariff imposed by a large country
[id=2742, Mark=1]39 E
QN=40 (8692) (16017) A reason why it is difficult for developing countries to maintain a cartel is that
a the elasticity of demand for a cartel's output decreases over time
b tariffs allow producers in the cartel to produce items that make no profit
c producers in the cartel have the motivation to lower prices but not to raise prices
d economic profits discourage other producers from entering the industry
e producers in the cartel have an economic incentive to cheat
[id=8692, Mark=1]40 E
QN=41 (2732) (15970) When the U.S placed tariffs on French wine, France placed high tariffs on U.S
chickens This is an example of
[id=2732, Mark=1]41 A
QN=42 (8706) (16017) Labor standards in trade are typically opposed by most developing countries
who believe that they will be used
a to hinder investment in foreign-based multinational corporations
b as a means of spreading U.S Corporate Values and destroying local cultures
c to charge these countries with crimes against child-labor standards at the Hague
d as a protectionist tool by import-competing producers in industrial countries
e to further neo-imperialist colonial exploitation
a are not; asset swapping never relates to intertemporal trade
b could possibly be; different economic states occur at different points in time
c are not; asset swapping is immediate and involves only assets, while intertemporal
trade takes two time periods and involves both assets and goods/services
d are; they both offer considerable payoff and are equal in the long run
e are; they both involve the smoothing out of now and future consumption
Trang 10[id=2768, Mark=1]44 B
QN=45 (2762) (15992) Forward and spot exchange rates
a move closely together and are equal on the value date
b are always such that the forward exchange rate is higher
[id=2762, Mark=1]45 A
QN=46 (8705) (16017) The evidence usually cited to prove that globalization hurts workers in
developing countries
b is inconclusive due to the poorly funded Central Statistical Office of Mexico
c is inconclusive due to the ambiguous theoretical implications of the findings
d is inconclusive due to poor statistical design of the underlying samples
e does not take into account the Heckscher-Ohlin model
a can save by avoiding excessive imports
b can save either by building up its capital stock or by acquiring foreign wealth
c can save only by acquiring foreign wealth
d can save only by building up its capital stock
e cannot save either by building up its capital stock or by acquiring foreign wealth.[id=8732, Mark=1]48 D
QN=49 (2783) (16007) The European Economic and Monetary Union
a produced a single government for handling European affairs
b set up a single currency and sole bank for European economic monetary policy
c created the Common Agricultural Pact
d eliminated all barriers to trade such as tax differentials between borders
e eliminated all local currencies in Western Europe
[id=2783, Mark=1]49 B
QN=50 (8734) (16017) If the goods' money prices do not change, a depreciation of the dollar against
the pound
a makes British jeans more expensive in Britain
b doesn't change the relative price of sweaters and jeans
Trang 11c makes British sweaters cheaper in terms of American jeans.
d makes British sweaters more expensive in terms of American jeans
e makes American jeans more expensive in terms of British sweaters
[id=8734, Mark=1]50 D
QN=1 (2570) (4374) Which of the following statements is the MOST accurate? The law of one price
states
a in competitive markets free of transportation costs and official barrier to trade,
identical goods sold in different countries must sell for the same price
b in competitive markets free of transportation costs and official barriers to trade,
identical goods sold in different countries must sell for the same price when their prices are expressed in terms of the same currency
c in competitive markets free of official barrier to trade, identical goods are sold at the
same price regardless of transportation costs
d identical goods sold in different countries must sell for the same price when their
prices are expressed in terms of the same currency
e in competitive markets free of transportation costs and official barrier to trade,
identical goods sold in the same country must sell for the same price when their prices are expressed in terms of the same currency
[id=2570, Mark=1]1 B
QN=2 (2565) (4361) In the Brander-Spencer model the subsidy raises profits by more than the
subsidy because of
a the military-industrial complex
b the "multiplier" effect of government expenditures
c the economies of scale once the company enters the market
d the forward and backward linkage effects of certain industries
e the deterrent effect of the subsidy on foreign competition
[id=2565, Mark=1]2 E
QN=3 (2561) (4359) The United States
a provides support for R&D through grant incentives
b provides support for R&D through tax legislation
c does not provide more support for R&D as compared to other forms of investment
Trang 12d provides support for R&D by imposing high tariffs on R&D intensive products.
e provides support for R&D by providing direct subsidies for such activities
[id=2561, Mark=1]3 B
QN=4 (2581) (4377) How does an increase in the real exchange rate affect exports and imports?
a Exports increase; imports change ambiguously
b Exports change ambiguously; imports decrease
d Exports increase; imports are constant
e Exports increase; imports decrease
[id=2581, Mark=1]4 A
QN=5 (2583) (4333) Historians of economic thought often describe written by
and published in as the first real exposition of an economic model
a "Of the Balance of Trade," David Hume, 1758
b "Of the Balance of Trade," David Hume, 1776
c "Wealth of Nations," David Hume, 1758
d "Wealth of Nations," Adam Smith, 1758
e "Wealth of Nations," Adam Smith, 1776
[id=2583, Mark=1]5 A
QN=6 (2580) (4354) Sophisticated theoretical arguments supporting import-substitution policies
include
[id=2580, Mark=1]6 A
QN=7 (2579) (4370) The exchange rate between currencies depends on
b the interest rate that can be earned on deposits of those currencies
Trang 13d the interest rate that can be earned on deposits of those currencies and the expected
future exchange rate
e the interest rate that can be earned on deposits of those countries and the national
output
[id=2579, Mark=1]7 D
QN=8 (2601) (4367) How many dollars would it cost to buy an Edinburgh Woolen Mill sweater
costing 50 British pounds if the exchange rate is 1.50 dollars per one British pound?
QN=9 (2607) (15919) If a country produces good Y (measured on the vertical axis) and good X
(measured on the horizontal axis), then the absolute value of the slope of its production possibility frontier is equal to
b the price of good Y divided by the price of good X
c the price of good X divided by the price of good Y
e the cost of capital (assuming that good Y is capital intensive) divided by the cost of
labor
[id=2607, Mark=1]9 A
QN=10 (2612) (4362) A country's gross national product (GNP) is
a the value of all final goods produced by its factors of production and sold on the
market in a given time period
b the value of all final goods and services produced by its factors of production,
excluding land, and sold on the market in a given time period
c the value of all final goods and services produced by its factors of production and sold
on the market
d the value of all final goods and services produced by its factors of production and sold
Trang 14on the market in a given time period.
e the value of all intermediate goods and services produced by its factors of production
and sold on the market in a given time period [id=2612, Mark=1]10 D
QN=11 (2609) (4349) The efficiency case made for free trade is that as trade distortions such as
tariffs are dismantled and removed
a government tariff revenue will increase, hence increasing national economic welfare
b government tariff revenue will decrease, and therefore national economic welfare will
increase
c deadweight losses for producers and consumers will decrease, hence increasing
national economic welfare
d deadweight losses for producers and consumers will decrease, hence decreasing
national economic welfare
e government tariff revenue will decrease, and therefore national economic welfare will
QN=13 (2620) (4546) One way in which the Heckscher-Ohlin model differs from the Ricardo model
of comparative advantage is by assuming that is (are) identical in all countries