国际贸易练习题(7–12章).docVIP

International Trade (Chapter 7-12) Chapter 7: Growth and Trade Multiple Choice One fundamental source of long-run economic growth would be: External scale economies. Lower wages. Improvements in production technologies. Exploiting comparative advantage. ANSWER: C Figure 7.1 Referring to Figure 7.1, this outward shift of the production possibilities frontier is an example of: Biased growth. Balanced growth. The move from autarky to free trade. A fall in production costs. ANSWER: A Which of the following statements is true? I. Increases in a countrys endowments of land, labor, and capital will lead to long-run economic growth. II. Improvements in the technology used in production can lead to increases in output, but cannot lead to long-run economic growth. III. Improvements in technology and increases in the endowments of productive inputs can both cause the production-possibility curve to shift outward. I and II I and III I, II and III None of the above ANSWER: B A capital-abundant country trades two goods with the rest of the world, medical equipment and corn. Medical equipment is relatively capital-intensive. An increase in the country’s endowment of capital, with no change in the price of either medical equipment or corn, will cause the output of medical equipment to __________ and the output of corn to __________. Rise; fall Fall; rise Rise; rise Fall; fall ANSWER: A True/False Questions For a country already engaged in trade, biased growth will lead to an increased willingness to trade. ANSWER: FALSE If a country is small, then its trade will have no effect on its terms of trade. ANSWER: TRUE Growth could lead to either an increase or a decrease in a countrys willingness to trade. ANSWER: TRUE Growth with an increased willingness to engage in international trade will always improve the economic well-being of a country. ANSWER: FALSE Essay Questions Suppose that Country A, which has a relative abundance of capital, further expands its endowment of capital.