An __ is a business involving 3 parties. Sometimes, the merchandise is

1.In the Mercantilist view of international trade (in a two-country world),___________.选项： A:both countries could gain from trade at the same time, but the distribution of the gains depended upon the terms of trade.; B:both countries could gain from trade at the same time, and the terms of trade were of no consequence for the distribution of the gains.; C:neither country could ever gain from trade.; D:one country’s gain from trade was associated with a loss for the other country.

2.If country A can produce more of practically everything than can country B, then which of the following statements is true?选项： A:Country A has no incentive to trade with country B.; B:Trade can benefit both countries.; C:Country B has no incentive to trade with country A.; D:Country B cannot have a comparative advantage in the production of any good that country A wants to buy.

3.Gains from trade only occur_______________________. （）.选项： A:if both countries have an absolute advantage in the industry in which they specialize B:if countries do not specialize in any industry C:if a country has an absolute advantage in production D:if countries that have different comparative advantages trade with each other

4.International trade can be divided into direct trade, indirect trade and ( )选项： A:Import trade; B:export trade; C:entrepot trade; D:transit trade

5.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.

6.A country that has a comparative advantage in producing capital goods will ( ) a country that has a comparative advantage in consumption goods. 选项： A、eap all of the gains from trade when it trades with B、grow slower than C、eap fewer of the gains from trade when it trades with D、specialize in producing capital goods and trade with

7.The Ricardian two-country, two-good model predicts that there are potential benefits from trade, but NOT 选项： A:when both countries have the same types of technology available. B:when one country has significantly lower wages than the other country. C:the mechanism that determines which country will specialize in which good. D:the effect of trade on income distribution. E:when one country has an absolute advantage in the production of both goods.

8.A country sells more to foreign countries than it buys from them. It has 选项： A、a trade surplus and positive net exports. B、a trade surplus and negative net exports. C、a trade deficit and positive net exports. D、a trade deficit and negative net exports.

9.4、（） occurs when a firm invests resources in business activities outside its home country. A. Foreign direct investment (FDI)B. Direct international investment (DII)C. International trade (IT)D. Foreign direct production (FDP) 选项： A:Foreign direct investment (FDI) B:Direct international investment (DII) C:International trade (IT) D:Foreign direct production (FDP)

10.What is the basic message of the theory of comparative advantage?选项： A:Countries are similar in their ability to produce goods efficiently; B:International trade is rarely beneficial to a country; C:Potential world production is greater with unrestricted free trade than it is with restricted trade; D:Trade is a zero-sum game

11. If the world terms of trade equal those of countryF, then 选项： A:country H but not country F will gain from trade. B:country H and country F will both gain from trade. C:neither country H nor F will gain from trade. D:only the country whose government subsidizes its exports will gain. E:None of the above.

12.Which of the following is NOT true about absolute advantage? （）.选项： A:According to Adam Smith, a country may also produce goods at home that it can buy at a lower cost from other countries. B:That a country has an absolute advantage in the production of a product means a commodity will be produced in the country where it costs least. C:According to Adam Smith, countries should specialize in the production of goods and then trade these for goods produced by other countries. D:A country has an absolute advantage in the production of a product when it is more efficient than any other country in producing it.

13.International trade has strong effects on income distributions. Therefore, international trade 选项： A: will tend to hurt some groups in each trading country. B: is beneficial to everyone in both trading countries. C: will tend to hurt one trading country. D: will tend to hurt everyone in both countries. E: will be beneficial to all those engaged in international trade.

14.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.

15.A product is produced in a monopolistically competitive industry with scale economies. If this industry exists in two countries, and these two countries engage in trade with each other, then we would expect ___________. 选项： A、the country with a relative abundance of the factor of production in which production of the product is intensive will export this product. B、the countries will trade only with other nations they are not in competition with. C、 the country in which the price of the product is lower will export the product. D、each country will export different varieties of the product to the other.

16.A product is produced in a monopolistically competitive industry with scale economies. If this industry exists in two countries, and these two countries engage in trade with each other, then we would expect ___________.选项： A:the country with a relative abundance of the factor of production in which production of the product is intensive will export this product.; B:the countries will trade only with other nations they are not in competition with.; C: the country in which the price of the product is lower will export the product.; D:each country will export different varieties of the product to the other.

17.Today China's services trade has a large deficit, which is in stark contrast to its merchandise trade. This is an indication of the unbalanced development in the country's foreign trade. 选项： A:正确; B:错误

18.[单选题]______ refers to transaction between parties from different countries. A International business B domestic business C commodity trade D international investment

19.Given the information in the table above, if the world equilibrium price of widgets were 4 cloth, then( ) 选项： A、neither country will want to export the good in which it enjoys comparative advantage B、neither country could benefit from trade with each other C、both countries will want to specialize in cloth D、both countries could benefit from trade with each other E、each country will want to export the good in which it enjoys comparative advantage

20. How international trade contributes to the economic development of a country? （）选项：A、International trade promotes a country's technological progress. B、International trade facilitates the rational allocation of factors of production. C、International trade expands the market of products. D、International trade is an essential international economic "transfer" channel.

21. If the production possibilities frontier of one the trade partners (“Country A”) is bowed out (concave to the origin), then increased specialization in production by that country will 选项： A:Increase the economic welfare of both countries. B:Increase the economic welfare of only Country A C:Decrease the economic welfare of Country A D:Decrease the economic welfare of Country B E:None of the above.