国际经济学试题

CHAPTER1THEINTERNATIONALECONOMYMULTIPLE-CHOICEQUESTIONSAprimaryreasonwhynationsconductinternationaltradeisbecause:SomenationsprefertoproduceonethingwhileothersproducethingsResourcesarenotequallydistributedamongalltradingnationsTradeenhancesopportunitiestoaccumulateprofitsInterestratesarenotidenticalinalltradingnationsAmainadvantageofspecializationresultsfrom:Economiesoflarge-scaleproductionThespecializingcountrybehavingasamonopolySmallerproductionrunsresultinginlowerunitcostsHighwagespaidtoforeignworkersInternationaltradeingoodsandservicesissometimesusedassubstituteforallofthefollowingexcept:InternationalmovementsofcapitalInternationalmovementsoflaborDomesticproductionofthesamegoodsandservicesDomesticproductionofdifferentgoodsandservicesIfanationhasanopeneconomy,itmeansthatthenation:AllowsprivateownershipofcapitalHasflexibleexchangeratesHasfixedexchangeratesConductstradewithothercountries1PAGE4TestBankforInternationalEconomics,9ePAGE4TestBankforInternationalEconomics,9e精品精品Internationaltradeforcesdomesticfirmstobecomemorecompetitivetermsof:TheintroductionofnewproductsProductdesignandqualityProductpriceAlloftheaboveThemovementtofreeinternationaltradeismostlikelytoshort-termunemploymentinwhichindustries?IndustriesinwhichthereareneitherimportsnorexportsImport-competingindustriesIndustriesthatselltodomesticandforeignbuyersIndustriesthatselltoonlyforeignbuyersInternationaltradeisbasedontheideathat:ExportsshouldexceedimportsImportsshouldexceedexportsResourcesaremoremobileinternationallythanaregoodsResourcesarelessmobileinternationallythanaregoodsArgumentsforfreetradearesometimesdisregardedbypoliticiansbecause:MaximizingdomesticefficiencyisnotconsideredimportantMaximizingconsumerwelfaremaynotbeachiefpriorityThereexistsoundeconomicreasonsforkeepingone’sisolatedfromothereconomiesEconomiststendtofavorhighlyprotecteddomesticmarketsHowmuchphysicaloutputaworkerproducersinanhour’sworkdependson:Theworker’smotivationandskillThetechnology,plant,andequipmentinuseHoweasytheproductistomanufactureAlloftheaboveThelargestamountoftradewiththeUnitedStatesinrecentyearsbeenconductedby:CanadaGermanyMexicoUnitedKingdomIncreasedforeigncompetitiontendsto:IntensifyinflationarypressuresathomeInducefallingoutputperworker-hourfordomesticworkersPlaceconstraintsonthewagesofdomesticworkersIncreaseprofitsofdomesticimport-competingindustries感谢下载载感谢下载载 istheabilityofafirm/industry,underfreeandfairmarketconditions,todesign,produce,andmarketgoodsandthatarebetterand/orcheaperthanthoseofotherfirms/industries.CompetitivenessProtectionismComparativeadvantageAbsoluteadvantageAfirm’s ,relativetothatofotherfirms,isgenerallyregardedasthemostimportantdeterminantofcompetitiveness.IncomelevelTastesandpreferencesEnvironmentalregulationProductivityFreetradersmaintainthatanopeneconomyisadvantageousinthatprovidesallofthefollowingexcept:IncreasedcompetitionforworldproducersAwiderselectionofproductsforconsumersTheutilizationofthemostefficientproductionmethodsRelativelyhighwagelevelsforalldomesticworkersRecentpressuresforprotectionismintheUnitedStateshavemotivatedbyallofthefollowingexcept:U.S.firmsshippingcomponentproductionoverseasHighprofitlevelsforAmericancorporationsSluggishratesofproductivitygrowthintheUnitedStatesHighunemploymentratesamongAmericanworkersInternationaltradetendstocausewelfarelossestoatleastgroupsinacountry:Thelessmobilethecountry’sresourcesThemoremobilethecountry’sresourcesThelowerthecountry’sinitiallivingstandardThehigherthecountry’sinitiallivingstandardForanationtomaximizeitsproductivityinaglobaleconomy:OnlyimportsarenecessaryOnlyexportsarenecessaryBothimportsandexportsarenecessaryNeitherimportsnorexportsarenecessaryAfeasibleeffectofinternationaltradeisthat:AmonopolyinthehomemarketbecomesanoligopolyinthemarketAnoligopolyinthehomemarketbecomesamonopolyinthemarketApurelycompetitivefirmbecomesanoligopolistApurelycompetitivefirmbecomesamonopolistInternationaltradeingoodsandservicestendsto:IncreasealldomesticcostsandpricesKeepalldomesticcostsandpricesatthesamelevelLessentheamountofcompetitionfacinghomemanufacturersIncreasetheamountofcompetitionfacinghomemanufacturersTherealincomeofdomesticproducersandconsumerscanbeincreasedby:Technologicalprogress,butnotinternationaltradeInternationaltrade,butnottechnologicalprogressTechnologicalprogressandinternationaltradeNeithertechnologicalprogressnorinternationaltradeIntheUnitedStates,automobilesare:Imported,butnotexportedExported,butnotimportedImportedandexportedNeitherexportednorimportedTechnologicalimprovementsaresimilartointernationaltradetheyboth:ProvidebenefitsforallproducersandconsumersIncreasethenationsaggregateincomeReduceunemploymentforalldomesticworkersEnsurethatindustriescanoperateatlessthanfullcapacityAsuddenshiftfromimporttariffstofreetrademayinduceshort-termunemploymentin:Import-competingindustriesIndustriesthatareonlyexportersIndustriesthatselldomesticallyaswellasexportIndustriesthatneitherimportnorexportRecentempiricalstudiesindicatethatproductivityperformanceindustriesis:DirectlyrelatedtoglobalizationofindustriesInverselyrelatedtoglobalizationofindustriesNotrelatedtoglobalizationofindustriesAnyoftheabove精品精品6TestBankforInternationalEconomics,9e6TestBankforInternationalEconomics,9e感谢下载载感谢下载载Empiricalresearchindicatesthat bestenhancesgainsforfirmsandindustries.LocalcompetitionRegionalcompetitionGlobalcompetitionNocompetitionBythemid-1990s, bankshadbecometheworldslargesttermsoftotalassets.BritishGermanJapaneseAmericanAreducedshareoftheworldexportmarketfortheUnitedStatesbeattributedto:DecreasedproductivityinU.S.manufacturingHighincomesofAmericanhouseholdsRelativelylowinterestratesintheUnitedStatesHighlevelsofinvestmentbyAmericancorporationsThedominanttradingnationintheworldmarketfollowingWorldWarwas:UnitedKingdomGermanySouthKoreaUnitedStatesAclosedeconomyisoneinwhich:Importsexactlyequalexports,sothattradeisbalancedDomesticfirmsinvestinindustriesoverseasThehomeeconomyisisolatedfromforeigntradeSavingexactlyequalsinvestmentatfullemploymentRelativetocountrieswithlowratiosofexportstogrossdomesticproduct,countrieshavinghighexporttogrossdomesticproductare vulnerabletochangesintheworldmarket.LessMoreEquallyAnyoftheaboveCHAPTER2FOUNDATIONSOFMODERNTRADETHEORYMULTIPLE-CHOICEQUESTIONSThemercantilistswouldhaveobjectedto:ExportpromotionpoliciesinitiatedbythegovernmentTheuseoftariffsorquotastorestrictimportsTradepoliciesdesignedtoaccumulategoldandotherpreciousmetalsInternationaltradebasedonopenmarketsUnlikethemercantilists,AdamSmithmaintainedthat:TradebenefitsonenationonlyattheexpenseofanothernationGovernmentcontroloftradeleadstomaximumeconomicwelfareAllnationscangainfromfreeinternationaltradeTheworld’soutputofgoodsmustremainconstantovertimeThetradingprincipleformulatedbyAdamSmithmaintainedthat:InternationalpricesaredeterminedfromthedemandsideofmarketDifferencesinresourceendowmentsdeterminecomparativeadvantageDifferencesinincomelevelsgovernworldtradepatternsAbsolutecostdifferencesdeterminetheimmediatebasisfortradeUnlikeAdamSmith,DavidRicardo’stradingprincipleemphasizesthe:DemandsideofthemarketSupplysideofthemarketRoleofcomparativecostsRoleofabsolutecostsWhenanationrequiresfewerresourcesthananothernationtoproduceproduct,thenationissaidtohavea(an):AbsoluteadvantageintheproductionoftheproductComparativeadvantageintheproductionoftheproductLowermarginalrateoftransformationfortheproductLoweropportunitycostofproducingtheproduct精品精品8TestBankforInternationalEconomics,9e8TestBankforInternationalEconomics,9e感谢下载载感谢下载载Accordingtotheprincipleofcomparativeadvantage,specializationtradeincreaseanation’stotaloutputsince:ResourcesaredirectedtotheirhighestproductivityTheoutputofthenation’stradingpartnerdeclinesThenationcanproduceoutsideofitsproductioncurveTheproblemofunemploymentiseliminatedInatwo-product,two-countryworld,internationaltradecanleadincreasesin:ConsumerwelfareonlyifoutputofbothproductsisincreasedOutputofbothproductsandconsumerwelfareinbothcountriesTotalproductionofbothproducts,butnotconsumerwelfareincountriesConsumerwelfareinbothcountries,butnottotalproductionbothproductsAsaresultofinternationaltrade,specializationinproductiontobe:Completewithconstantcosts—completewithincreasingcostsCompletewithconstantcosts—incompletewithincreasingcostsIncompletewithconstantcosts—completewithincreasingcostsIncompletewithconstantcosts—incompletewithincreasingcostsAnationthatgainsfromtradewillfinditsconsumptionpointlocated:InsideitsproductionpossibilitiescurveAlongitsproductionpossibilitiescurveOutsideitsproductionpossibilitiescurveNoneoftheaboveUsingthedataofTable2.1,answerQuestions10through15.Table2.1.OutputPossibilitiesfortheU.S.andtheU.K.OutputperWorkerperCountry TonsofSteelTelevisionsUnitedStates545UnitedKingdom1020RefertoTable2.1.TheUnitedStateshastheabsoluteadvantageinproductionof:SteelTelevisionsBothsteelandtelevisionsNeithersteelnortelevisionsRefertoTable2.1.TheUnitedKingdomhasacomparativeadvantagetheproductionof:SteelTelevisionsBothsteelandtelevisionsNeithersteelnortelevisionsRefertoTable2.1.IftradeopensupbetweentheUnitedStatesandUnitedKingdom,Americanfirmsshouldspecializeinproducing:SteelTelevisionsBothsteelandtelevisionsNeithersteelnortelevisionsRefertoTable2.1.TheopportunitycostofproducingonetonofintheUnitedStatesis:3televisions10televisions20televisions45televisionsRefertoTable2.1.MutuallyadvantageoustradewilloccurbetweentheUnitedStatesandtheUnitedKingdomsolongasonetonofsteelfor:Atleast1television,butnomorethan2televisionsAtleast2televisions,butnomorethan3televisionsAtleast3televisions,butnomorethan4televisionsAtleast4televisions,butnomorethan5televisionsRefertoTable2.1.TheUnitedKingdomgainsmostfromtradeif:1tonofsteeltradesfor2televisions1tonofsteeltradesfor3televisions2tonsofsteeltradefor4televisions2tonsofsteeltradefor5televisions精品精品10TestBankforInternationalEconomics,9e10TestBankforInternationalEconomics,9e感谢下载载感谢下载载Concerninginternationaltraderestrictions,whichofthefollowingisfalse?Traderestrictions:LimitspecializationandthedivisionoflaborReducethevolumeoftradeandthegainsfromtradeCausenationstoproduceinsidetheirproductioncurvesMayresultinacountryproducingsomeoftheproductofcomparativedisadvantageIfaproductionpossibilitiescurveisbowedout(i.e.,concave)appearance,productionoccursunderconditionsof:ConstantopportunitycostsIncreasingopportunitycostsDecreasingopportunitycostsZeroopportunitycostsIncreasingopportunitycostssuggestthat:ResourcesarenotperfectlyshiftablebetweentheproductionofgoodsResourcesarefullyshiftablebetweentheproductionoftwogoodsAcountry’sproductionpossibilitiescurveappearsasastraightlineAcountry’sproductionpossibilitiescurveisbowedinwardconvex)inappearanceThetrading-triangleconceptisusedtoindicateanation’s:Exports,marginalrateoftransformation,termsoftradeImports,termsoftrade,marginalrateoftransformationMarginalrateoftransformation,imports,exportsTermsoftrade,exports,importsAssumingincreasingcostconditions,tradebetweentwocountrieswouldnotbelikelyiftheyhave:IdenticaldemandconditionsbutdifferentsupplyconditionsIdenticalsupplyconditionsbutdifferentdemandconditionsDifferentsupplyconditionsanddifferentdemandconditionsIdenticaldemandconditionsandidenticalsupplyconditionsUsethedatainTable2.2toanswerQuestions21through26.Table2.2.OutputPossibilitiesforSouthKoreaandJapanOutputperWorkerperCountry TonsofSteel VCRsSouthKorea 80 40Japan 20 2021.RefertoTable2.2.TheopportunitycostofoneVCRinJapanis:a.1tonofsteelb.2tonsofsteelc.3tonsofsteeld.422.RefertonsofsteeltoTable2.2.TheopportunitycostofoneVCRinSouthKoreais:½tonofsteel1tonofsteel1½tonsofsteel2tonsofsteelRefertoTable2.2.Accordingtotheprincipleofabsoluteadvantage,Japanshould:ExportsteelExportVCRsExportsteelandVCRsNoneoftheabove;thereisnobasisforgainfultradeRefertoTable2.2.Accordingtotheprincipleofcomparativeadvantage:SouthKoreashouldexportsteelSouthKoreashouldexportsteelandVCRsJapanshouldexportsteelJapanshouldexportsteelandVCRs25.RefertoTable2.2.Withinternationaltrade,whatwouldbethemaximumamountofsteelthatSouthKoreawouldbewillingtoexporttoJapaninexchangeforeachVCR?a.½tonofsteelb.1tonofsteelc.1½tonsofsteeld.2tonsofsteelRefertoTable2.2.Withinternationaltrade,whatwouldbethenumberofVCRsthatJapanwouldbewillingtoexporttoSouthKoreainexchangeforeachtonofsteel?1VCR2VCRs3VCRs4VCRs精品精品12TestBankforInternationalEconomics,9e12TestBankforInternationalEconomics,9e感谢下载载感谢下载载Theearlieststatementoftheprincipleofcomparativeadvantageassociatedwith:AdamSmithDavidRicardoEliHeckscherBertilOhlinIfHongKongandTaiwanhadidenticallaborcostsbutweresubjectincreasingcostsofproduction:TradewoulddependondifferencesindemandconditionsTradewoulddependoneconomiesoflarge-scaleproductionTradewoulddependontheuseofdifferentcurrenciesTherewouldbenobasisforgainfultradeIftheinternationaltermsoftradesettleatalevelthatiseachcountry’sopportunitycost:ThereisnobasisforgainfultradeforeithercountryBothcountriesgainfromtradeOnlyonecountrygainsfromtradeOnecountrygainsandtheothercountrylosesfromtradeInternationaltradeisbasedonthenotionthat:DifferentcurrenciesareanobstacletointernationaltradeGoodsaremoremobileinternationallythanareresourcesResourcesaremoremobileinternationallythanaregoodsAcountry’sexportsshouldalwaysexceeditsimportsRefertoFigure2.1.Therelativecostofsteelintermsofaluminumis:4.0tons2.0tons0.5tons0.25tonsFigure2.1.ProductionPossibilitiesScheduleRefertoFigure2.1.Therelativecostofaluminumintermsofsteelis:4.0tons2.0tons0.5tons0.25tonsRefertoFigure2.1.Iftherelativecostofsteelweretorise,theproductionpossibilitiesschedulewould:BecomesteeperBecomeflatterShiftinwardinaparallelmannerShiftoutwardinaparallelmannerRefertoFigure2.1.Iftherelativecostofaluminumweretothentheproductionpossibilitiesschedulewould:BecomesteeperBecomeflatterShiftinwardinaparallelmannerShiftoutwardinaparallelmannerWhenanationachievesautarkyequilibrium:InputpriceequalsfinalproductpriceLaborproductivityequalsthewagerateImportsequalexportsProductionequalsconsumption精品精品14TestBankforInternationalEconomics,9e14TestBankforInternationalEconomics,9e感谢下载载感谢下载载Whenanationisinautarkyandmaximizesitslivingstandard,consumptionandproductionpointsare:AlongtheproductionpossibilitiesscheduleAbovetheproductionpossibilitiesscheduleBeneaththeproductionpossibilitiesscheduleAnyoftheaboveIfCanadaexperiencesincreasingopportunitycosts,itssupplyscheduleofsteelwillbe:Downward-slopingUpward-slopingHorizontalVerticalIfCanadaexperiencesconstantopportunitycosts,itssupplyscheduleofsteelwillbe:Downward-slopingUpward-slopingHorizontalVerticalThegainsfrominternationaltradeincreaseas:AnationconsumesinsideofitsproductionpossibilitiesscheduleAnationconsumesalongitsproductionpossibilitiesscheduleTheinternationaltermsoftraderisesabovethenation’spriceTheinternationaltermsoftradeapproachesthenation’spriceInatwo-country,two-productworld,thestatement“JapanenjoysacomparativeadvantageoverFranceinsteelrelativetobicycles”equivalentto:FrancehavingacomparativeadvantageoverJapaninrelativetosteelFrancehavingacomparativedisadvantageagainstJapaninandsteelJapanhavingacomparativeadvantageoverFranceinsteelbicyclesJapanhavingacomparativedisadvantageagainstJapaninandsteelRicardo’stheoryofcomparativeadvantagewasoflimitedreal-worldvaliditybecauseitwasfoundedonthe:LabortheoryofvalueCapitaltheoryofvalueLandtheoryofvalueEntrepreneurtheoryofvalueAssumethatlaboristheonlyfactorofproductionandthatwagesintheUnitedStatesequal$20perhourwhilewagesintheUnitedequal$10perhour.ProductioncostswouldbelowerintheUnitedStatesthantheUnitedKingdomif:U.S.laborproductivityequaled40unitsperhourwhileU.K.productivityequaled15unitsperhourU.S.laborproductivityequaled30unitsperhourwhileU.K.productivityequaled20unitsperhourU.S.laborproductivityequaled20unitsperhourwhileU.K.productivityequaled30unitsperhourU.S.laborproductivityequaled15unitsperhourwhileU.K.productivityequaled25unitsperhourAccordingtoRicardo,acountrywillhaveacomparativeadvantagetheproductinwhichits:LaborproductivityisrelativelylowLaborproductivityisrelativelyhighLabormobilityisrelativelylowLabormobilityisrelativelyhighTheRicardianmodelofcomparativeadvantageisbasedonalloffollowingassumptionsexcept:OnlytwonationsandtwoproductsProductqualityvariesamongnationsLaboristheonlyfactorofproductionLaborcanmovefreelywithinanationThewritingsofG.D.A.MacDougallemphasizedwhichofthefollowingasanexplanationofacountryscompetitiveposition?NationalincomelevelsRelativeendowmentsofnaturalresourcesDomestictastesandpreferencesLaborcompensationandproductivitylevels精品精品16TestBankforInternationalEconomics,9e16TestBankforInternationalEconomics,9e感谢下载载感谢下载载CHAPTER3INTERNATIONALEQUILIBRIUMMULTIPLE-CHOICEQUESTIONSWhichofthefollowingisfalseconcerningindifferencecurves?TheyillustratehowthenationranksalternativeconsumptionbundlesHighercurvesrefertomoresatisfactionTheyarenegativelysloped,beingbowedoutawayfromthediagram’soriginTheyreflectthetastesandpreferencesofaconsumerTheamountofonegoodthatisjustsufficienttocompensatetheconsumerforthelossofsomeamountofanothergoodisreferredtoAbsolutecostComparativecostMarginalrateoftransformationMarginalrateofsubstitutionInautarky,theequilibriumrelativepriceofoneproductintermsanotherproductforacountryisdeterminedbythe:ProductionpossibilitiescurveCommunityindifferencecurveCommunityindifferencemapProductionpossibilitiescurveandcommunityindifferencemapIngeneral,aswemovedownwardalongacountry’scommunitycurve,themarginalrateofsubstitutionofoneproductforanotherproduct:IncreasesDecreasesRemainsconstantNoneoftheaboveTheintroductionofcommunityindifferencecurvesintoourexamplefocusesattentiononthenation’s:IncomelevelResourcepricesTastesandpreferencesProductivitylevelIntroducingindifferencecurvesintoourtrademodelpermitsusdetermine:WhereanationchoosestolocatealongitsproductioncurveinautarkyThepreciselocationofanation’sproductionpossibilitiescurveWhetherabsolutecostorcomparativecostconditionsexistThecurrencypriceofoneproductintermsofanotherproductThemarginalrateofsubstitutionismeasuredbytheabsolutevaluetheslopeofa(an):ProductionpossibilitiescurveIndifferencecurveProductionpossibilitiescurveDemandcurveIntheabsenceoftrade,anationisinequilibriumwhereacommunityindifferencecurve:LiesaboveitsproductionpossibilitiescurveIstangenttoitsproductionpossibilitiescurveIntersectsitsproductionpossibilitiescurveLiesbelowitsproductionpossibilitiescurveTheuseofindifferencecurveshelpsusdeterminethepoint:Alongtheterms-of-tradelineacountrywillchooseWhereacountrymaximizesitsresourceproductivityAtwhichacountryceasestobecomecompetitiveWherethemarginalrateoftransformationapproacheszeroWithtrade,acountrywillmaximize itssatisfactionwhenit:MovestothehighestpossibleindifferencecurveForcesthemarginalrateofsubstitutiontoitslowestpossiblevalueConsumesmoreofbothgoodsthanitdoesinautarkyFindsitsmarginalrateofsubstitutionexceedingitsmarginaloftransformation精品精品18TestBankforInternationalEconomics,9e18TestBankforInternationalEconomics,9e感谢下载载感谢下载载Tradebetweentwonationswouldnotbepossibleiftheyhave:IdenticalcommunityindifferencecurvesbutdifferentproductionpossibilitiescurvesIdenticalproductionpossibilitiescurvesbutdifferentcommunityindifferencecurvesDifferentproductionpossibilitiescurvesanddifferentcommunityindifferencecurvesIdenticalproductionpossibilitiescurvesandidenticalcommunityindifferencecurvesGivenatwo-countryandtwo-productworld,theUnitedStatesenjoyalltheattainablegainsfromfreetradewithCanadaifit:TradesattheU.S.rateoftransformationTradesattheCanadianrateoftransformationSpecializescompletelyintheproductionofbothgoodsSpecializespartiallyintheproductionofbothgoodsJohnStuartMill’stheoryofreciprocaldemandbestapplieswhenpartners:AreofequalsizeandimportanceinthemarketProduceunderincreasingcostconditionsPartiallyspecializeintheproductionofcommoditiesHavesimilartasteandpreferencelevelsTheequilibriumpricesandquantitiesestablishedaftertradearefullydeterminateifweknow:Thelocationofallcountries’indifferencecurvesTheshapeofeachcountry’sproductionpossibilitiescurveThecomparativecostsofeachtradingpartnerThestrengthofworldsupplyanddemandforeachgood“Theequilibriumrelativecommoditypriceatwhichtradetakesplaceisdeterminedbytheconditionsofdemandandsupplyforeachcommoditybothnations.Otherthingsbeingequal,thenationwiththemoreintensedemandfortheothernation’sexportedgoodwillgainlessfromtradethanthenationwiththelessintensedemand.”Thisstatementwasfirstproposedby:AlfredMarshallwithoffercurveanalysisJohnStuartMillwiththetheoryofreciprocaldemandAdamSmithwiththetheoryofabsoluteadvantageDavidRicardowiththetheoryofcomparativeadvantageWhichofthefollowingterms-of-tradeconceptsiscalculatedbydividingthechangeinacountry’sexportpriceindexbythechangeinitsimportpriceindexbetweentwopointsintime,multipliedby100expressthetermsoftradeinpercentages?CommoditytermsoftradeIncometermsoftradeSinglefactorialtermsoftradeDoublefactorialtermsoftradeThebestexplanationofthegainsfromtradethatDavidRicardocouldprovidewastodescribeonlytheouterlimitswithinwhichtheequilibriumtermsoftradewouldfall.ThisisbecauseRicardo’sdidnotrecognizehowmarketpricesareinfluencedby:DemandconditionsSupplyconditionsBusinessexpectationsProfitpatternsTheuseofindifferencecurveshelpsusdeterminethepoint:AlongtheproductionpossibilitiescurveacountrywillchooseAtwhichacountrymaximizesitsresourceproductivityAtwhichacountryceasestobecomecompetitiveWherethemarginalrateoftransformationapproacheszeroUnderfreetrade,SwedenenjoysallofthegainsfromtradeHollandifSweden:TradesatHolland’srateoftransformationTradesatSweden’srateoftransformationSpecializescompletelyintheproductionofitsexportgoodSpecializespartiallyintheproductionofitsexportgoodBecausetheRicardiantradetheoryrecognizedonlyhowsupplyconditionsinfluenceinternationalprices,itcoulddetermine:TheequilibriumtermsoftradeTheouterlimitsforthetermsoftradeWhereacountrychoosestolocatealongitsproductionpossibilitiescurveWhereacountrychoosestolocatealongitstradetriangleThetermsoftradeisgivenbytheprices:PaidforallgoodsimportedbythehomecountryReceivedforallgoodsexportedbythehomecountryReceivedforexportsandpaidforimportsOfprimaryproductsasopposedtomanufacturedproductsGiventhetermsoftradedatainTable3.1,answerQuestions22through24.精品精品20TestBankforInternationalEconomics,9e20TestBankforInternationalEconomics,9e感谢下载载感谢下载载Table3.1.TermsofTradeExportPriceIndexImportPriceIndexCountry1990200319902003Mexico100220100200Sweden100160100150Spain100155100155France100170100230Denmark100120100125ReferringtoTable3.1,whichcountries’termsoftradeimproved1990and2003?MexicoandDenmarkSwedenandDenmarkSwedenandSpainMexicoandSwedenReferringtoTable3.1,whichcountries’termsoftradeworsened1990and2003?SpainandMexicoMexicoandFranceFranceandDenmarkDenmarkandSwedenReferringtoTable3.1,whichcountry’stermsoftradedidnotchangebetween1990and2003?SpainSwedenFranceDenmarkGivenfreetrade,smallnationstendtobenefitthemostfromsincethey:AremoreproductivethantheirlargetradingpartnersArelessproductivethantheirlargetradingpartnersHavedemandpreferencesandincomelevelslowerthantheirtradingpartnersEnjoytermsoftradelyingneartheopportunitycostsoflargetradingpartnersAterms-of-tradeindexthatequals150indicatesthatcomparedtobaseyear:ItrequiresagreateroutputofdomesticgoodstoobtaintheamountofforeigngoodsItrequiresalesseramountofdomesticgoodstoobtaintheamountofforeigngoodsThepriceofexportshasrisenfrom$100to$150Thepriceofimportshasrisenfrom$100to$150Aterm-of-tradeindexthatequals90indicatesthatcomparedtobaseyear:ItrequiresagreateroutputofdomesticgoodstoobtaintheamountofforeigngoodsItrequiresalesseramountofdomesticgoodstoobtaintheamountofforeigngoodsThepriceofexportshasfallenfrom$100to$90Thepriceofimportshasfallenfrom$100to$90Thetheoryofreciprocaldemanddoesnotwellapplywhenonecountry:ProducesunderconstantcostconditionsProducesalongit