Multiple-Choice Questions Ch.2（已学，可参考）
1. The Mercantilists did not advocate:
a. free trade
b. stimulating the nation's exports c. restricting the nations' imports
d. the accumulation of gold by the nation
2. According to Adam Smith, international trade was based on:
a. absolute advantage b. comparative advantage
c. both absolute and comparative advantage d. neither absolute nor comparative advantage
3. What proportion of international trade is based on absolute advantage?
a. All b. most c. some d. none
4. The commodity in which the nation has the smallest absolute disadvantage is the commodity of its:
a. absolute disadvantage b. absolute advantage
c. comparative disadvantage d. comparative advantage
5. If in a two-nation (A and B), two-commodity (X and Y) world, it is established that nation
A has a comparative advantage in commodity X, then nation B must have:
a. an absolute advantage in commodity Y b. an absolute disadvantage in commodity Y c. a comparative disadvantage in commodity Y d. a comparative advantage in commodity Y
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6. 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):
a. nation A has a comparative disadvantage in commodity X b. nation B has a comparative disadvantage in commodity Y c. nation A has a comparative advantage in commodity X
d. nation A has a comparative advantage in neither commodity
7. With reference to the statement in Question 6:
a. Px/Py=1 in nation A b. Px/Py=3 in nation B c. Py/Px=1/3 in nation B d. all of the above
8. With reference to the statement in Question 6, if 3X is exchanged for 3Y:
a. nation A gains 2X b. nation B gains 6Y c. nation A gains 3Y d. nation B gains 3Y
9. With reference to the statement of Question 6, the range of mutually beneficial trade
between nation A and B is:
a. 3Y < 3X < 5Y b. 5Y < 3X < 9Y c. 3Y < 3X < 9Y d. 1Y < 3X < 3Y
10. If domestically 3X=3Y in nation A, while 1X=1Y domestically in nation B:
a. there will be no trade between the two nations b. the relative price of X is the same in both nations c. the relative price of Y is the same in both nations d. all of the above
11. Ricardo explained the law of comparative advantage on the basis of:
a. the labor theory of value b. the opportunity cost theory c. the law of diminishing returns d. all of the above
12. Which of the following statements is true?
a. The combined demand for each commodity by the two nations is negatively sloped
b. the combined supply for each commodity by the two nations is rising stepwise
c. the equilibrium relative commodity price for each commodity with trade is given by the
intersection of the demand and supply of each commodity by the two nations
d. all of the above
13. A difference in relative commodity prices between two nations can be based upon a
difference in:
a. factor endowments b. technology c. tastes
d. all of the above
14. In the trade between a small and a large nation:
a. the large nation is likely to receive all of the gains from trade
b. the small nation is likely to receive all of the gains from trade c. the gains from trade are likely to be equally shared d. we cannot say
15. The Ricardian trade model has been empirically
a. verified b. rejected c. not tested
d. tested but the results were inconclusive
Multiple-Choice Questions ch.5（已学，可参考）
1. The H-O model extends the classical trade model by:
a. explaining the basis for comparative advantage b. examining the effect of trade on factor prices c. both a and b d. neither a nor b
2. Which is not an assumption of the H-O model
a. the same technology in both nations b. constant returns to scale c. complete specialization d. equal tastes in both nations
3. With equal technology nations will have equal K/L in production if:
a. factor prices are the same b. tastes are the same
c. production functions are the same d. all of the above
4. We say that commodity Y is K-intensive with respect to X when:
a. more K is used in the production of Y than X b. less L is used in the production of Y than X
c. a lower L/K ratio is used in the production of Y than X d. a higher K/L is used in the production of X than Y
5. When w/r falls, L/K
a. falls in the production of both commodities b. rises in the production of both commodities c. can rise or fall d. is not affected
6. A nation is said to have a relative abundance of K if it has a: a. greater absolute amount of K b. smaller absolute amount of L c. higher L/K ratio d. lower r/w
7. A difference in relative commodity prices between nations can be based on a difference in:
a. technology
b. factor endowments c. tastes
d. all of the above
8. In the H-O model, international trade is based mostly on a difference in:
a. technology
b. factor endowments c. economies of scale d. tastes
9. According to the H-O-S model, trade reduces international differences in:
a. relative but not absolute factor prices b. absolute but not relative factor prices c. both relative and absolute factor prices d. neither relative nor absolute factor prices