—The Ricardian Model
Multiple Choice Questions
Countries trade with each other becau they are _______ and becau of ______.
different, costs
similar, scale economies
different, scale economies
similar, costs
None of the above.
Trade between two countries can benefit both countries if
each country exports that good in which it has a comparative advantage.
each country enjoys superior terms of trade.
each country has a more elastic demand for the imported goods.
each country has a more elastic supply for the supplied goods.
Both (c) and (d).
The Ricardian theory of comparative advantage states that a country has a comparative advantage
output per worker of widgets is higher in that country.
that country’s exchange rate is low.
wage rates in that country are high.
the output per worker of widgets as compared to the output of some other product is higher in
Both (b) and (c).
In order to know whether a country has a comparative advantage in the production of one particular
one
two 月光散
three
four
five
5. A country engaging in trade according to the principles of comparative advantage gains from trade becau it (a) is producing exports indirectly more efficiently than it could alternatively. (b) is producing imports indirectly more efficiently than it could domestically. (c) is producing exports using fewer labor units. (d) is producing imports indirectly using fewer labor units. (e) None of the above. Answer: B 6. Given the following information: Unit Labor Requirements Cloth Widgets Home 10 20 Foreign 60 30 (a) Neither country has a comparative advantage. (b) Home has a comparative advantage in cloth. (c) Foreign has a comparative advantage in cloth. (d) Home has a comparative advantage in widgets. (e) Home has a comparative advantage in both products. Answer: B 7. If it is ascertained that Foreign us prison-slave labor to produce its exports, then home should (a) export cloth. (b) export widgets. (c) export both and import nothing. (d) export and import nothing. (e) All of the above. Answer: A 8. If the Home economy suffered a meltdown, and the Unit Labor Requirement
s in each of the products quadrupled (that is, doubled to 30 for cloth and 60 for widgets) then home should (a) export cloth. (b) export widgets. (c) export both and import nothing. (d) export and import nothing. (e) All of the above. Answer: A 9. If wages were to double in Home, then Home should: (a) export cloth. (b) export widgets. (c) export both and import nothing. (d) export and import nothing. (e) All of the above. Answer: A 10. If the world equilibrium price of widgets were 4 Cloths, then
both countries could benefit from trade with each other.
neither country could benefit from trade with each other.
each country will want to export the good in which it enjoys comparative advantage.
neither country will want to export the good in which it enjoys comparative advantage.
both countries will want to specialize in cloth.
Given the f
ollowing information:
Cloth Widgets
10 20
60 30
Neither country has a comparative advantage.
Home has a comparative advantage in cloth.
Foreign has a comparative advantage in cloth.
Foreign has a comparative advantage in widgets.
Home has a comparative advantage in both products.
The opportunity cost of cloth in terms of widgets in Foreign is if it is ascertained that Foreign us
export cloth.
export widgets.
export both and import nothing.
反电信诈骗
export and import nothing.
All of the above.
If wages were to double in Home, then Home should
export cloth.
export widgets.
export both and import nothing.
export and import nothing.
All of the above.
If the world equilibrium price of widgets were 4 Cloths, then
both countries could benefit from trade with each other.
neither country could benefit from trade with each other.
each country will want to export the good in which it enjoys comparative advantage.
neither country will want to export the good in which it enjoys comparative advantage.
both countries will want to specialize in cloth.
If the world equilibrium price of widgets were 40 cloths, then
both countries could benefit from trade with each other.
neither country could benefit from trade with each other.
(c) each country will want to export the good in which it enjoys comparative advantage. (d) neither country will want to export the good in which it enjoys comparative advantage. (e) both countries will want to specialize in cloth. Answer: A 16. In a two product two country world, international trade can lead to increas in (a) consumer welfare only if output of both products is incread. (b) output of both products and consumer welfare in both countries. (c) total production of both products but not consumer welfare in both countries. (d) consumer welfare in both countries but not total production of both products. (e) None of the above Answer: B 17. As a result of trade, specialization in the Ricardian model tends to be (a) complete with constant costs and with increasing costs. (b) complet
e with constant costs and incomplete with increasing costs. (c) incomplete with constant costs and complete with increasing costs. (d) incomplete with constant costs and incomplete with increasing costs. (e) None of the above. Answer: B 18. As a result of trade between two countries which are of completely different economic sizes, specialization in the Ricardian 2X2 model tends to be (a) incomplete in both countries (b) complete in both countries (c) complete in the small country but incomplete in the large country (d) complete in the large country but incomplete in the small country (e) None of the above Answer: C 19. A nation engaging in trade according to the Ricardian model will find its consumption bundle (a) inside its production possibilities frontier. (b) on its production possibilities frontier. (c) outside its production possibilities frontier. (d) inside its trade-partner’s production possibilities frontier.
(e) on its trade-partner’s production possibilities frontier. Answer: C
In the Ricardian model, if a country’s trade is restricted, this will cau all except which?
Limit specialization and the division of labor.
Reduce the volume of trade and the gains from trade
Cau nations to produce inside their production possibilities curves
May result in a country producing some of the product of its comparative disadvantage
None of the above.
If a very small country trades with a very large country according to the Ricardian model, then
the small country will suffer a decrea in economic welfare.
the large country will suffer a decrea in economic welfare.
the small country only will enjoy gains from trade.
the large country will enjoy gains from trade.
None of the above.
If the world terms of trade for a country are somewhere between the domestic cost ratio of H and
country H but not country F will gain from trade.
country H and country F will both gain from trade. 关于颜色的单词
neither country H nor F will gain from trade.
only the country who government subsidizes its exports will gain.
None of the above.
If the world terms of trade equal tho of country F, then
country H but not country F will gain from trade.
country H and country F will both gain from trade.
neither country H nor F will gain from trade.
only the country who government subsidizes its exports will gain.
None of the above.
If the world terms of trade equal tho of country, F then
country H but not country F will gain from trade.
country H and country F will both gain from trade.
neither country H nor F will gain from trade.
only the country who government subsidizes its exports will gain.
None of the above.
25. If a production possibilities frontier is bowed out (concave to the origin), then production occurs under conditions of (a) constant opportunity costs. (b) increasing opportunity costs. (c) decreasing opportunity costs. (d) infinite opportunity costs. (e) None of the above. Answer: B 26. If the production possibilities frontier of one the trade partners (“Country A”) is bowed out (concave to the origin), then incread specialization in production by that country will (a) Increa the economic welfare of both countries. (b) Increa the economic welfare of only Country A. (c) Decrea the economic welfare of Country A. (d) Decrea the economic welfare of Country B. (e) None of the above. Answer: A 27. If two countries have identical production possibility frontiers, then trade between them is not likely if (a) their supply curves are identical. (b) their cost functions are identical. (c) their demand conditions identical. (d) their incomes are identical. (e) None of the above. Answer: E 28. If two countries have identical production possibility frontiers, then trade between them is not li
kely if (a) their supply curves are identical. (b) their cost functions are identical. (c) their demand functions differ. (d) their incomes are ident
ical. (e) None of the above. Answer: C 29. The earliest statement of the principle of comparative advantage is associated with (a) David Hume. (b) David Ricardo. (c) Adam Smith. (d) Eli Heckscher. (e) Bertil Ohlin. Answer: B
车子几年报废If one country’s wage level is very high relative to the other’s (the relative wage exceeding the
neither country has a comparative advantage.
only the low wage country has a comparative advantage.
only the high wage country has a comparative advantage.
consumers will still find trade worth while from their perspective.
None of the above.
哀鸿遍野什么意思If one country’s wage level is very high relative to the other’s (the relative wage exceeding the
it is not possible that producers in each will find export markets profitable.
it is not possible that consumers in both countries will enhance their respective welfares through
it is not possible that both countries will find gains from trade.
it is possible that both will enjoy the conventional gains from trade.
None of the above.
If one country’s wage level is very high relative to the other’s (the relative wage exceeding the
free trade will improve both countries’ welfare
free trade will result in no trade taking place
英雄有泪
free trade will result in each country exporting the good in which it enjoys comparative
free trade will result in each country exporting the good in which it suffers the greatest
None of the above.
The Ricardian 2X2 model is bad on all of the following except only two nations and two products.
no diminishing returns.
labor is the only factor of production.
product quality varies among nations.
None of the above.
Ricardo’s original theory of comparative advantage emed of limited real-world value becau it
capital theory of value.
land theory of value.
entrepreneur theory of value.
None of the above.
35. According to Ricardo, a country will have a comparative advantage in the product in which its (a)
labor productivity is relatively low. (b) labor productivity is relatively high. (c) labor mobility is relatively low. (d) labor mobility is relatively high. (e) None of the above. Answer: B 36. In a two-country, two-product world, the statement “Germany enjoys a comparative advantage over France in autos relative to ships” is equivalent to (a) France having a comparative advantage over Germany in ships. (b) France having a comparative disadvantage compared to Germany in autos and ships. (c) Germany having a comparative advantage over France in autos and ships. (d) France having no comparative advantage over Germany. (e) None of the above. Answer: A 37. Assume that labor is the only factor of production and that wages in the United States equal $20 per hour while wages in Japan are $10 per hour. Production costs would be lower in the United States as compared to Japan if (a) U.S. labor productivity equaled 40 units per hour and Japan’s 15 units per hour. (b) U.S. productivity equaled 30 units per hour whereas Japan
’s was 20. (c) U.S. labor productivity equaled 20 and Japan’s 30. (d) U.S. labor productivity equaled 15 and Japan’s 25 units per hour. (e) None of the above. Answer: A 38. If the United States’s production possibility frontier was flatter to the widget axis, whereas Germany’s was flatter to the butter axis, we know that (a) the United States has no comparative advantage (b) Germany has a comparative advantage in butter. (c) the U.S. has a comparative advantage in butter. (d) Not enough
information is given. (e) None of the above. Answer: B 39. Suppo the United State’s production possibility frontier was flatter to the widget axis, whereas Germany’s was flatter to the butter axis. We now learn that the German mark sharply depreciates against the U.S. dollar. We now know that (a) the United States has no comparative advantage (b) Germany has a comparative advantage in butter. (c) the United States has a comparative advantage in butter. (d) Not enough information is given. (e) None of the above. Answer: B
Suppo the United State’s production possibility frontier was flatter to the widget axis, whereas
the United States has no comparative advantage.
Germany has a comparative advantage in butter.
the United States has a comparative advantage in butter.
Not enough information is given.
None of the above.
营养减肥餐Which of the following statements is true
Free trade is beneficial only if your country is strong enough to stand up to foreign competition
Free trade is beneficial only if your competitor does not pay unreasonably low wages
汽车油漆工
Free trade is beneficial only if both countries have access to the same technology.
All of the above
None of the above
The Gains from Trade associated with the principle of Comparative Advantage depends on
The trade partners must differ in technology or tastes.
There can be no more goods traded than the number of trade partners.
There may be no more trade partners than goods traded.
All of the above
None of the above
If transportation costs are especially high for Widgets in a Ricardian 2X2 model in which Country A
Country B must also enjoy a comparative advantage in Widgets
Country B may end up exporting Widgets
Country A may switch to having a comparative advantage in the other good.
All of the above
None of the above
Mahatma Ghandi exhorted his followers in India to promote economic welfare by decreasing
Makes no n
Makes no economic n
Is consistent with the the Ricardian model of comparative advantage.
Is not consistent with the Ricardian model of comparative advantage.
None of the above
45. The Country of Rhozundia is blesd with rich copper deposits. The cost of Copper produced (relative to the cost of Widgets produced) is therefore very low. From this information we know that (a) Rhozundia has a comparative advantage in Copper (b) Rhozundia should export Copper and import Widgets (c) Rhozundia should export Widgets and export Copper (d) Both (a) and (b) are
