A) value of the utility that they experience from owning the product.

B) difference between what consumers are willing to pay for a product and the price they must pay to purchase the product.

C) price they pay for the product.

D) difference between the regular price of the product and the amount they paid for the product.

8 Consumer surplus is: A

A) a net gain to consumers who are able to buy a product at a market price lower than the highest price they are willing and able to buy the product for.

B) the total revenue that a consumer pays when buying a product.

C) the net gain to consumers who are able to buy a product at the market price that they are willing to pay for that product.

D) the difference between the value a consumer places on a product and the lowest price that anyone can pay for that product.

9 Consumer surplus is used to measure: C A) consumer confidence.

B) the impact on consumers of changes in consumer preferences. C) the impact on consumers of changes in market prices of products. D) the amount of a product that consumers will buy at a specific price.

10The factors that determine how much of a product a firm is willing to supply are: B A) unfilled orders for the product and predicted orders for the product.

B) the price the firm receives from the sale of the product and the cost to the firm of producing and selling the product.

C) demand and consumer surplus.

D) the price the firm receives from the sale of the product and consumer demand for the product.

11 A profitable firm will supply units up to the point at which: D A) the price that the product can be sold for starts to decrease. B) consumer demand begins to decrease. C) its production capacity is reached.

D) the price it receives for a product just about equals the extra cost incurred in producing another unit.

12The cost to a firm of producing an extra unit of its product is determined by the: B

A) resources or inputs necessary to produce that unit and the price at which that unit can be sold.

B) resources or inputs necessary to produce that unit and the costs to the firm of those resources or inputs.

C) demand for that unit.

D) efficiency with which the firm can produce the product.

13 The additional cost of producing one additional unit of product is called the: C A) product cost. B) break-even cost. C) marginal cost. D) total cost.

14 The supply curve for a product illustrates the amounts of a product that will be supplied at different prices and assumes that other factors that might affect supply are constant. The factors that might cause a supply curve to shift include: A

A) availability of needed inputs and the technology that determines what inputs are needed to produce the product. B) demand.

C) personal preferences of consumers. D) the market price of the product.

15 If the quantity of a product supplied is not responsive to changes in the price of the product: D A) supply of that product is elastic. B) supply of that product is static. C) demand for the product is elastic. D) supply of that product is inelastic.

16 ______________________ is defined as the increase in the economic well-being of producers who sell a product at a market price higher than the lowest price that they would have been willing to accept. C

A) Opportunity cost B) Elasticity of supply C) Producer surplus D) National demand

17 ______________________ is buying something in one market and selling it at a profit in another market because of a price difference in those markets. A A) Arbitrage B) Equilibrium C) Free trade D) Demand

18 The value of goods and services that are not produced because available resources are used to produce another product is called: B A) sunk costs.

B) opportunity costs. C) economic costs. D) producer surplus.

19 The difference between what one group gains from international trade and another group loses from that trade is: D A) arbitrage.

B) supply of exports. C) equilibrium.

D) net national gain from trade.

20 International trade is a positive-sum activity. This means that: C A) everyone wins in international trade.

B) there is money to be made in international trade.

C) most countries gain from international trade, so the whole world has a net gain from international trade.

D) there is only a limited amount of trade that can be conducted, so there will always be winners and losers in international trade.

第三章

1 Mercantilism maintained that government regulation of trade was: A

A) necessary to provide the greatest national benefit because individual merchants tended to look after their own interests and not the national interests.

B) not justified because it interfered with the rights of merchants to do business as they thought best.

C) necessary to prevent wealthy countries from taking advantage of poorer countries. D) detrimental because it interfered with free trade.

2 A central belief of mercantilism was that: D A) wealth was based on labor efficiency. B) nations should favor free trade.

C) barter was preferable to dealing in any kind of currency.

D) national well-being was based on a country holding gold and silver.

3 Mercantilism viewed trade as a zero-sum activity, which means that: C

A) there was nothing to be gained from international trade so there was no reason to trade. B) once a country's trade is established, it cannot be increased or decreased.

C) one country's gains in international trade come at the expense of other countries because there is only a certain amount of international trade that is available.

D) every country that engages in international trade gains from that trade because as trade activity increases, the amount of goods traded increases.

4 Adam Smith maintained that national well-being depends on the ability to consume, so: B

A) a country should produce all that its citizens can consume and export everything that its citizens cannot consume.

B) imports are necessary so that expanding national consumption can be obtained and total consumption can increase.

C) government should encourage domestic production so that domestic consumption can

increase without increasing imports.

D) government should closely monitor imports and exports so that a proper balance can be maintained.

5 Adam Smith said that trade freely transacted between countries: B

A) is dangerous since there are no controls on what is exported and what is imported.

B) generally leads to gains for all countries, so international trade is a positive-sum activity. C) only benefits a country if that country has an absolute advantage in all products.

D) only benefits a country if that country has a comparative advantage in a specific product.

6 Adam's Smith's economic theories focused on: A

A) labor because he thought all value was determined by and measured in hours of labor. B) gold and silver as the only measure of a country's success in international trade. C) all aspects of the costs of producing goods for export.

D) balancing imports and exports so that a country does not gain or lose from international trade.

7 _________________ is defined as the number of units of output that a worker can produce in an hour. C

A) Labor efficiency B) Labor costs

C) Labor productivity D) Production possibilities

8 __________________ means that the labor productivity for a particular product in a particular country is higher than the rest of the world's labor productivity of that product. B A) Comparative advantage B) Absolute advantage C) Labor efficiency D) Ability to export

9 If there is no trade, each country will have to produce all products demanded in that country. When trade is established, countries can: D

A) increase domestic production for domestic consumption and avoid the necessity of imports. B) decrease dependency on foreign imports and export domestically produced products. C) increase exports of products that it is not very efficient at producing.

D) shift labor resources toward producing goods in which it has a comparative advantage.

10 _____________________ says that a country will export goods that it can produce at relatively low opportunity cost and import goods that it would otherwise produce at a relatively high opportunity cost. D

A) Smith's theory of absolute advantage B) The concept of production possibilities C) The theory of import substitution