TEST BANK OF INTERNATIONALECONOMICS

PartⅠ.Fillin the blank with suitable content.
1.Seven themesrecur throughout the study of international economics. These are

,

,
, the balance ofpayments, exchange rate determination, internationalpolicy coordination, international capital market.
2.Countriesengage in international trade for two basic reasons :

and


.
3.Acountry has a comparative advantage in producing a good if

of producingthat good in terms of other goods is lower in that country than it is in othercountries.
4. Labor is the only one factor ofproduction. 、and 、are the unit labor requirement in cheese and wine at Home andForeign, respectively. If
, Home has a comparativeadvantage in cheese. /is the relative price of cheese, when

Home and Foreign specialize in producingcheese and wine , respectively.
5. Labor is the only one factor ofproduction. 、and 、are the unit labor requirement in cheese and wine at Home andForeign, respectively. L and L*are Home’s and Foreign’s laborforce. If /</</, the world relative supply of cheese equals
. Home’s gainsfrom indirectly producing wine can be shown as

6. In specificfactors model(QM=QM (K, LM);QF=QF (T, LF); L=LM+LF),if Home produces and trades manufactured goods for food , the overallcomparison of the five change rate of goods price and factor price 、、、、insideHome is
.That is, the real income of capitalists increase, it can be shown as
.

7. There are two main reasons whyinternational trade has strong effects on the distribution of income. First,

Second
.
8. In the Heckscher-Ohlinmodel,Comparative advantage is influenced by the interaction between
and

9.According to
,if the relativeprice of a good rises, the real income of the factor which intensively used inthat good will rise, while the real income of the other factor will fall.
10.According to
, at unchangedrelative goods price, if the supply of a factor of production increases, theoutput of the good that are intensive in that factor will rise, while theoutput of the other good will fall.
11.According to
, owners of acountry’s abundant factors gain from trade, but owners of a country’s scarefactors lose.
12.According to
, international tradeproduces a convergence of relative goods prices. This convergence, in turns,causes the convergence of the relative factor prices. Trade leads to completeequalization of factor prices.
13. Three assumptions crucial to theprediction of factor price equalization are in reality untrue. These assumptionsare (1)

(2)

(3)
.
14.“U.S.exports were less capital-intensive than U.S. imports” is known as


.
15.The RicardianModel , the SpecificFactor model and the H-O model may be viewedas special cases of

16.The standard trade model derives a world relativesupply curve from

and a world relative demand curve from
.
17.Toexport-biased growth, if the decline of the welfare caused by the deteriorationof the terms of trade swap over the rise of the welfare caused by growth, thegrowth is
.
18. Some economists argued thatexport-biased growth by poor nations would worsen their term of trade so muchthat they would be worse off than if they had not grown at all. This situationis known as
.
19.Immiserizinggrowth demands strict conditions, these conditions are




,

,

.

20.According to “

”, tariffs and export subsidies mighthave perverse effects on internal price.
21.In the model of “Monopolistic Competition and Trade”, firms of an individualnation face the trade-off between
and
.
22. Marshallargued that there were three mainreasons why a cluster of firms may be more efficient than an individual firm inisolation:
,



,


23.The pattern of intraindustry trade itself isunpredicted,

determine the details of the trade pattern.
39. When there is external economies, thepattern of international trade is determined by
.
24. The indexes of intrainindustry tradeof a industry can be calculated by the standard formula:
I=
.
25. Interindustry trade andintrainindustry trade are the sources of gains from trade . When

、
, intrainindustry trade is thedominant source of gains from trade, everyone gains from trade.
26.The argument of temporary protection of industries to enable them togain experience is known as

27. If we add together the gains andlosses from a tariff, We find the the net effect on national welfare can beseparated into two parts:

and





28.Why do countries adopt trade policies such as tariff or import quota,which produce more costs than benefits?——




29.In the political economy of trade policy , government are assumed to maximize

rather than

.
30.Deviations from free trade cansometimes increase national welfare. These arguments include
and