D) decreases, and the consumption of that good decreases.
20 Trade patterns in developing countries: C
A) are not as predicted by the Heckscher-Ohlin theory.
B) follow the predictions of the Heckscher-Ohlin theory perfectly.
C) generally follow the predictions of the Heckscher-Ohlin theory, but not perfectly. D) cannot be determined because record-keeping is inadequate.
第六章
1 According to the principle of comparative advantage, countries that are similar should trade very little with each other: D
A) and the patterns of international trade confirm that similar countries do not trade with each other.
B) and the patterns of international trade confirm that similar countries do not trade with each other unless there are unusual conditions.
C) but certain countries that are similar do trade with each other, especially if they are located in the same geographical area.
D) but among industrialized countries, which have many similarities, there is extensive trade.
2 Much of the trade of industrialized countries is two-way trade, which means that: C A) industrialized countries import and export a variety of products. B) they import factors of production and export finished products.
C) the countries both import and export the same or very similar products. D) they export factors of production and import finished products.
3 Constant return of scale theorizes that input use and total costs rise: B A) when exports are increased.
B) in the same proportion as output increases. C) when imports are increased. D) as long as price also rises.
4 Scale economies suggest that output quantities increase at a larger proportion than total costs increase as additional inputs are used, so average cost per unit produced: A A) decreases as output increases. B) remains the same.
C) increases as output increases.
D) is determined by the price that a product will bring on the international market.
5 The actions and decisions of the individual firm results in: A A) internal scale economies. B) external scale economies. C) imperfect competition. D) modest scale economies.
6 If products are differentiated, there is monopolistic competition, which means that: B
A) a single firm controls prices in a market and discourages other firms from entering the market.
B) there are a large number of firms competing vigorously with each other and selling variations of a basic product.
C) no new firms can afford to enter the industry so the single firm in the market avoids competition.
D) prices for the products are uniform throughout the world even though there are discernible differences in the products.
7 In a market where each firm's product is different: D A) no firm can earn an economic profit. B) no firm can earn a profit.
C) scale economies are not possible.
D) each firm has some control over the price it can charge for that product.
8 ____________________ suggests that a number of small firms produce identical commodity products, take the price offered by the market, and believe that they cannot individually influence that price. A
A) Perfect competition B) Oligopoly C) Monopoly
D) Scale economies
9 If a few large firms dominate an industry and control or influence the price at which their products are sold, there is: A A) an oligopoly.
B) imperfect competition. C) perfect competition.
D) monopolistic competition.
10 In an oligopoly, if firms do not aggressively compete with each other on price: C A) they cannot earn a profit and will eventually lose market share.
B) each firm can earn a normal profit and can retain their market share if no new competition materializes.
C) each firm can earn an economic profit that is greater than the normal return that they would earn if they competed on price.
D) the oligopoly may become a monopoly.
11 The average cost of a firm producing a product in an area declines as the output of that firm's industry (all firms producing that product in that area) in that area increases. This is a description of the phenomenon of: B
A) internal scale economies. B) oligopoly.
C) external scale economies. D) intra-industry trade.
12 ____________________ can arise if a concentration of an industry's firms in a geographical area attracts local suppliers of specialized services for that industry or a large pool of specialized labor for that industry. C
A) Internal economies of scale B) Net trade
C) External economies of scale D) Intra-industry trade
13 The difference between imports and exports is referred to as net trade and has a positive value for a specific product if: D
A) imports of the product exceed exports of the product. B) that product is produced domestically. C) that product is not produced domestically. D) a country has net exports of that product.
14 Intra-industry trade is more prevalent in: C A) developing countries.
B) countries that are not part of a trading bloc.
C) industrialized countries and where trade barriers and transportation costs are low. D) countries that are geographically distant.
15 If scale economies are modest: B
A) there is likely to be a monopoly in the industry.
B) there is room in the industry for a large number of firms. C) entry into the industry is difficult.
D) there is perfect competition in the industry.
16 National gains from trade can be attributed to all of the following except: A A) the effect of distance in gravity models. B) product differentiation.
C) access to inexpensive imports.
D) foreign buyers willing to pay high prices for a country's exports.
17 Doubling the distance between countries that are trading partners, tends to: C A) increase trade. B) decrease prices.
C) reduce trade between the countries by one-third to one-half. D) encourage trade in new products.
18 If substantial scale economies exist over a large range of output, production of those products tends to be concentrated in a few large facilities in a few countries to take advantage of the scale
economies. Those countries where the large production facilities are located tend to: C A) be net importers of the product.
B) be net exporters of the production factors that are scarce in those countries. C) be net exporters of the products. D) discourage trade.
19 Established patterns of production and trade can persist even if new production locations become available that could be lower cost because: D
A) trade barriers will prevent the exploitation of the new locations and foreign governments will discourage new investment.
B) the established locations are known to the customers of the producers and the cost of relocating will not be offset by the lower cost of the new locations.
C) scale economies exist only in certain locations and cannot be transferred.
D) the established locations are producing large outputs and have achieved scale economies, so the new locations may have difficulty gaining sufficient production scale to achieve lower costs.
20 In an oligopoly, if firms compete on price: A
A) more gain from trade goes to foreign buyers of the products produced by the firms.
B) more gain from trade goes to the producers of the products than to the foreign buyers of the products.
C) new firms will be encouraged to enter the market. D) all firms in the market will benefit.
第七章
1 One of the odd effects of growth on trade is that an increase in only one of a country's factors of production: C
A) causes an increase in the price of the products using that factor of production. B) results in a decrease in the country's gain from trade.
C) will cause that country's production of some products to decline.
D) will result in increased production of all of the products that the country exports.
2 Growth in a country's production capabilities, whether as the result of increased factors of production or improved technology, causes: D
A) a decline in the country's overall gain from international trade.
B) the country's production possibilities curve to skew toward more production of the exportable product.
C) the country's production possibilities curve to move inward. D) the country's production possibilities curve to move outward.
3 If there is balanced growth in a country: A
A) production of all of the country's products will increase proportionately if product prices remain the same.
B) there will be no change in the country's exports unless imports increase as a result of increased income.
C) there will be no change in the country's imports unless exports increase as a result of