increased domestic production.
D) prices for the products produced by the country will remain the same and the country's gains from trade will remain the same.
4 If there is ____________________ growth within a country, the expansion of production favors producing more of some products than other products. C A) balanced B) moderate C) biased D) negative
5 The Rybczynski theorem says that in a two-good world, assuming that product prices are constant, growth in one factor of production has two effects: A
A) increase in the output of the good that uses the growing factor intensively and decrease in the output of the other good.
B) increase in the output of the good that uses the growing factor intensively and decrease in the country's terms of trade.
C) increase in the output of any good that uses the growing factor and no effect on production of other goods.
D) increase in the output of any good that uses the growing factor and decrease in the total production of the country.
6 The Rybczynski theorem suggests that the development of new sources of a natural resource in a country that exports that natural resource: D
A) will increase overall production in that country.
B) may put pressure on the country to increase both exports and imports. C) will decrease overall production in the country.
D) may retard the development of other lines of production in that country.
7 Changes in a country's willingness to engage in trade: C
A) will increase the prices of all goods manufactured in the country to the extent that those goods are exported.
B) will decrease imports and increase prices of imported goods until international equilibrium is reached.
C) can change the country's terms of trade if the country has the ability to influence the international equilibrium.
D) can cause domestic production to increase as exports increase and imports decrease.
8 The reduction in a country's demand for an imported good: B A) can lead to immiserizing growth.
B) reduces the relative price of the imported goods worldwide if that country imports a large enough quantity of that good.
C) reduces worldwide demand which results in increased pressure to import that good.
D) increases that country's ability to export goods unless government regulation restricts such
exports.
9 If a country's growth increases the country's willingness to trade, the increase in the country's demand for imports can increase the price of the imported goods. In that case, the country experiences: A
A) a decline in its terms of trade.
B) an improvement in its terms of trade.
C) an increase in the price of the goods that it exports. D) multiple positive consequences.
10 Growth that expands a country's willingness to trade and results in a large decline in the country's terms of trade so that the country is worse off than before its growth is referred to as: B A) reverse growth.
B) immiserizing growth. C) negative growth. D) measured growth.
11 Countries that export a diversified selection of products are not at high risk of experiencing ____________________, but developing countries that export a few primary products are at a high risk for this negative effect. D A) reverse growth B) negative growth C) measured growth D) immiserizing growth
12 While differences in the availability of factors of production are a basis for comparative advantage, another basis for comparative advantage is: A A) differences in production technologies available. B) a country's terms of trade. C) a country's rate of growth. D) excessive demand.
13 Most industrially useful new technology now comes from ___________________ which is conducted largely by businesses and focuses on improvements in existing production technologies. C
A) industrial espionage B) experimentation
C) research and development D) statistical analysis
14 Most research and development is done in: A
A) industrialized countries where there is ample highly skilled labor. B) developing countries where labor costs are low.
C) countries where incentives are available for technological advances.
D) inaccessible locations to ensure that the technological advances will benefit only the developers of the advances.
15 New technology is difficult to keep secret and generally spreads to other countries and companies that have a use for that technology. This spread of new technology is called: D A) franchising.
B) unauthorized use. C) licensing. D) diffusion.
16 Venture capital is money that is made available: B
A) for research and development that must be repaid whether the research and development is successful or not.
B) by outsiders who purchase an ownership interest in a new business with expectations that the new business will be very successful and earn those owners large returns on their investments. C) for research and development that will be of benefit to everyone. D) by lenders who expect repayment in the very short-term.
17 According to the product life cycle hypothesis, when a product is first invented: C A) it is immediately profitable but only for a short time. B) substitute products will be available immediately.
C) it still must be perfected by additional research and development. D) it will be produced in developing countries with low labor costs.
18 There are two sources of new technology for a country: technology developed domestically and technology imported from other countries. Therefore: C
A) countries should focus on domestic development of new technologies since importing new technology is expensive.
B) countries should focus on importing new technology so that the time necessary to develop new technology can be saved.
C) openness to international trade can have a significant impact on how fast a country's economy can grow.
D) openness to international trade can make a country weaker when it relies too heavily on imported technology.
19 If a country exhibits balanced growth, the production possibilities curve will A A) shift out on both axes equally. B) shift out on the x axis. C) shift out on the y axis. D) not change.
20 Most researchers have concluded that ____________________ rather than trade is the primary reason for changing demands for skilled and unskilled labor. C A) factor availability
B) politics
C) technological change D) growth
第八章
1 In economic terms, free trade is preferred because: A
A) there are usually net gains from free trade for nations and the world.
B) the WTO provides a forum for countries to negotiate to lower their trade restrictions. C) it protects domestic producers from foreign competition. D) it forces consumers to make choices.
2 A(n) ____________________ is a money amount per unit of an imported product. C A) import duty B) ad valorem tariff C) specific tariff D) general duty
3 A(n) ____________________ is a percentage of the estimated value of an imported product. B A) import duty B) ad valorem tariff C) specific tariff D) general duty
4 ____________________ involves the practices and institutions that determine how national governments interact with each other on issues such as international trade issues. D A) Mercantilism
B) International ethics C) Political ideology D) Global governance
5 The ____________________ was an international agreement adopted in 1947 that focused on reducing the barriers to international trade. B A) North American Free Trade Agreement B) General Agreement on Tariffs and Trade C) World Trade Organization D) European Union
6 The international organization that now oversees global rules that apply to international trade and that serves as a forum for discussing and resolving trade disputes is the: C A) North American Free Trade Agreement. B) General Agreement on Tariffs and Trade. C) World Trade Organization. D) European Union.