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1.A country will be able to consume a combination of goods that is NOT attainable solely from domestic production if选项： A: the country avoids international trade.; B:the country specializes in one product.; C:the world terms of trade equal the domestic relative costs.; D:the world terms of trade differ from its domestic relative costs.

2.Assume that the United States and Canada engage in trade. If the international terms of trade coincides with the Canadian cost ratio, the United States realizes all of the gains from trade with Canada.

3.The United States is one of the richest nations in the world, 选项： A、so it does not need to trade with poor nations in order to achieve any gains from trade. B、so it might not have a comparative advantage in producing any goods. C、but it can still benefit from specialization and trade. D、so it must have a comparative advantage in the production of all goods.

4.Assume that the United States and Canada engage in trade. If the international terms of trade coincides with the Canadian cost ratio, the United States realizes all of the gains from trade with Canada.选项： A:正确; B:错误

5.Gains from trade will result if a country specializes in: 选项： A:all of its goods. B:the goods in which it has a comparative advantage. C:goods in which it has an absolute advantage. D:goods in which it has an absolute and comparative advantage.

6.Assume that the United States and Canada engage in trade. If the international terms of trade coincides with the U.S. cost ratio, the United States realizes all of the gains from trade with Canada. 选项： A:正确 B:错误

7.If a very small country trades with a very large country according to the Ricardian model, then 选项： A: the small country will suffer a decrease in economic welfare. B: the large country will suffer a decrease in economic welfare. C: the small country only will enjoy gains from trade. D: the large country will enjoy gains from trade. E: both countries will enjoy equal gains from trade.

8.With trade, a country will maximize its satisfaction when it: _______________.选项： A:Moves to the highest possible indifference curve; B:Forces the marginal rate of substitution to its lowest possible value; C:Consumes more of both goods than it does in autarky; D:Finds its marginal rate of substitution exceeding its marginal rate of transformation

9.According to the theory of comparative advantage, specialization and free trade will benefit 选项： A、only that trading party that has an absolute advantage in the production of all goods. B、only that trading party that has both an absolute advantage and a comparative advantage in the production of all goods. C、all trading parties, even when some are absolutely more efficient producers than others. D、only that trading party that has a comparative advantage in the production of all goods.

10. Two countries can achieve gains from trade even if one of the countries has an absolute advantage in the production of all goods.

11.The trading-triangle concept is used to indicate a nation's: 选项： A、terms of trade, relative commodity price, world price B、marginal rate of transformation, marginal rate of substitution C、Terms of trade, exports, imports D、Opportunity cost, relative production cost

12. The opportunity cost of producing one more unit of a good increases, because 选项： A、 as the production of a good increases, the amount of other goods sacrificed diminishes B、 economic resources are equally adaptable to the production of all goods C、 as the unemployment rate falls, business will pay a higher wage rate to a labour D、 economic resources are not equally adaptable to the production of all goods

13.Different from absolute advantage, the theory of comparative advantage holds that trade is beneficial to both countries even if one has an absolute advantage in the production of both goods to be traded.

14.37) A country specializes in the production of goods for which it has a comparative advantage, so 选项： A、some producers and consumers win, some lose, but overall the gains exceed the losses. B、all producers win. C、all consumers win. D、producers win, consumers lose, but overall the gains exceed the losses.

15.Two countries can achieve gains from trade even if one of the countries has an absolute advantage in the production of all goods.选项： A:正确; B:错误

16.Two countries can achieve gains from trade even if one of the countries has an absolute advantage in the production of all goods. 选项： A、正确 B、错误

17.Canada’s economy is roughly the same size as Spain’s, but Canada trades as much with the United States as does all of Europe.it is because of NAFTA and because Canada are close to the U.S.选项： A:正确; B:错误

18.If each country specializes in producing the goods in which it has a comparative advantage, more goods are produced, and the wealth of both the buying and the selling nations increases.

19.If each country specializes in producing the goods in which it has a comparative advantage, more goods are produced, and the wealth of both the buying and the selling nations increases.

20. If two countries specialize in the production of goods in which they have a comparative advantage, they can experience gains from trade. 选项：A、Iftwocountriesspecializeintheproductionofgoodsinwhichtheyhaveacomparativeadvantage,theycanexperiencegainsfromtrade.

21. A _____ encompasses all activities associated with the flow and transformation of goods from the raw material stage, through to the end user, as well as the associated information flows. 选项： A:production line B:supply chain C:marketing channel D:warehouse

22.China has 20% of the world’s population but only 10% of the world’s farmable land. The Heckscher-Ohlin theory of trade would predict which of the following forChinafollowing the opening of trade?选项： A: China will export land-intensive goods like wheat and import labor-intensive goods like clothing.; B: China will shift resources into the production of agricultural goods and away from manufactured goods.; C:China will shift resources out of the production of agricultural goods and into the production of labor-intensive goods.; D:China will export capital-intensive goods like automobiles and import labor-intensive goods like clothing.

23.China has 20% of the world’s population but only 10% of the world’s farmable land. The Heckscher-Ohlin theory of trade would predict which of the following for China following the opening of trade?选项： A: A. China will export land-intensive goods like wheat and import labor-intensive goods like clothing.; B: B. China will shift resources into the production of agricultural goods and away from manufactured goods.; C:C. China will shift resources out of the production of agricultural goods and into the production of labor-intensive goods.; D:D. China will export capital-intensive goods like automobiles and import labor-intensive goods like clothing.

24.Suppose that the production of a $30,000 automobile in Canada requires $10,000 worth of steel. The Canadian nominal tariff rates for importing these goods are 25 percent for automobiles and 10 percent for steel. Given this information, the effective rate of protection for the Canadian automobile industry is approximately: a. 15 percent b. 32 percent c. 48 percent d. 67 percent Exhibit 4.1 Assume that the United States imports automobiles from South Korea at a price of $20,000 per vehicle and that these vehicles are subject to an import tariff of 20 percent. Also assume that U.S. components are used in the vehicles assembled by South Korea and that these components have a value of $10,000. 选项： A:正确 B:错误

25.The marginal rate of transformation() of X for Y refers to: 选项： A: the amount of Y that a nation must give up to produce each additional unit of X B: the opportunity cost of X C: the absolute slope of the production frontier at the point of production D: all of the above