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CHAPTER 2

FOUNDATIONS OF MODERN TRADE THEORY:

COMPARATIVE ADVANTAGE

MULTIPLE-CHOICE QUESTIONS

1. The mercantilists would have objected to:

a. Export promotion policies initiated by the government

b. The use of tariffs or quotas to restrict imports

c. Trade policies designed to accumulate gold and other precious metals

d. International trade based on open markets

2. Unlike the mercantilists, Adam Smith maintained that:

a. Trade benefits one nation only at the expense of another nation

b. Government control of trade leads to maximum economic welfare

c. All nations can gain from free international trade

d. The world’s output of goods must remain constant over time

3. The trading principle formulated by Adam Smith maintained that:

a. International prices are determined from the demand side of the market

b. Differences in resource endowments determine comparative advantage

c. Differences in income levels govern world trade patterns

d. Absolute cost differences determine the immediate basis for trade

4. Unlike Adam Smith, David Ricardo’s trading principle emphasizes the:

a. Demand side of the market

b. Supply side of the market

c. Role of comparative costs

d. Role of absolute costs

5. When a nation requires fewer resources than another nation to produce a product, the nation

is said to have a(n):

a. Absolute advantage in the production of the product

b. Comparative advantage in the production of the product

c. Lower marginal rate of transformation for the product

d. Lower opportunity cost of producing the product

6. According to the principle of comparative advantage, specialization and trade increase a

nation’s total output since:

a. Resources are directed to their highest productivity

b. The output of the nation’s trading partner declines

c. The nation can produce outside of its production possibilities curve

d. The problem of unemployment is eliminated

7. In a two-product, two-country world, international trade can lead to increases in:

a. Consumer welfare only if output of both products is increased

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

8. As a result of international trade, specialization in production tends to be:

a. Complete with constant costs—complete with increasing costs

b. Complete with constant costs—incomplete with increasing costs

c. Incomplete with constant costs—complete with increasing costs

d. Incomplete with constant costs—incomplete with increasing costs

9. A nation that gains from trade will find its consumption point being located:

a. Inside its production possibilities curve

b. Along its production possibilities curve

c. Outside its production possibilities curve

d. None of the above

Using the data in Table 2.1, answer Questions 10–15.

Table 2.1. Output Possibilities for the U.S. and the U.K.

Output per Worker per Day

Country Tons of Steel Televisions

United States 5 45

United Kingdom 10 20

10. Refer to Table 2.1. The United States has the absolute advantage in the production of:

a. Steel

b. Televisions

c. Both steel and televisions

d. Neither steel nor televisions

11. Refer to Table 2.1. The United Kingdom has a comparative advantage in the production of:

a. Steel

b. Televisions

c. Both steel and televisions

d. Neither steel nor televisions

12. Refer to Table 2.1. If trade opens up between the United States and the United Kingdom,

American firms should specialize in producing:

a. Steel

b. Televisions

c. Both steel and televisions

d. Neither steel nor televisions

13. Refer to Table 2.1. The opportunity cost of producing one ton of steel in the United States is:

a. 3 televisions

b. 10 televisions

c. 20 televisions

d. 45 televisions

14. Refer to Table 2.1. Mutually advantageous trade will occur between the United States and

the United Kingdom so long as one ton of steel trades for:

a. At least 1 television, but no more than 2 televisions

b. At least 2 televisions, but no more than 3 televisions

c. At least 3 televisions, but no more than 4 televisions

d. At least 4 televisions, but no more than 5 televisions

15. Refer to Table 2.1. The United Kingdom gains most from trade if:

a. 1 ton of steel trades for 2 televisions

b. 1 ton of steel trades for 3 televisions

c. 2 tons of steel trade for 4 televisions

d. 2 tons of steel trade for 5 televisions

16. Concerning international trade restrictions, which of the following is false? Trade restrictions:

a. Limit specialization and the division of labor

b. Reduce the volume of trade and the gains from trade

c. Cause nations to produce inside their production possibilities curves

d. May result in a country producing some of the product of its comparative disadvantage

17. If a production possibilities curve is bowed out(i.e., concave) in appearance, production

occurs under conditions of:

a. Constant opportunity costs

b. Increasing opportunity costs

c. Decreasing opportunity costs

d. Zero opportunity costs

18. Increasing opportunity costs suggest that:

a. Resources are not perfectly shiftable between the production of two goods

b. Resources are fully shiftable between the production of two goods

c. A country’s production possibilities curve appears as a straight line

d. A country’s production possibilities curve is bowed inward (i.

e., convex) in appearance

19. The trading-triangle concept is used to indica te a nation’s:

a. Exports, marginal rate of transformation, terms of trade

b. Imports, terms of trade, marginal rate of transformation

c. Marginal rate of transformation, imports, exports

d. Terms of trade, exports, imports

20. Assuming increasing cost conditions, trade between two countries would not be likely if

they have:

a. Identical demand conditions but different supply conditions

b. Identical supply conditions but different demand conditions

c. Different supply conditions and different demand conditions

d. Identical demand conditions and identical supply conditions

Use the data in Table 2.2 to answer Questions 21–26.

Table 2.2. Output Possibilities for South Korea and Japan

Output per Worker per Day

Country Tons of Steel VCRs

South Korea 80 40

Japan 20 20

21. Refer to Table 2.2. The opportunity cost of one VCR in Japan is:

a. 1 ton of steel

b. 2 tons of steel

c. 3 tons of steel

d. 4 tons of steel

22. Refer to Table 2.2. The opportunity cost of one VCR in South Korea is:

a. ? ton of steel

b. 1 ton of steel

c. 1? tons of steel

d. 2 tons of steel

23. Refer to Table 2.2. According to the principle of absolute advantage, Japan should:

a. Export steel

b. Export VCRs

c. Export steel and VCRs

d. None of the above; there is no basis for gainful trade

24. Refer to Table 2.2. According to the principle of comparative advantage:

a. South Korea should export steel

b. South Korea should export steel and VCRs

c. Japan should export steel

d. Japan should export steel and VCRs

25. Refer to Table 2.2. With international trade, what would be the maximum amount of steel

that South Korea would be willing to export to Japan in exchange for each VCR?

a. ? ton of steel

b. 1 ton of steel

c. 1? tons of steel

d. 2 tons of steel

26. Refer to Table 2.2. With international trade, what would be the maximum number of VCRs

that Japan would be willing to export to South Korea in exchange for each ton of steel?

a. 1 VCR

b. 2 VCRs

c. 3 VCRs

d. 4 VCRs

27. The earliest statement of the principle of comparative advantage is associated with:

a. Adam Smith

b. David Ricardo

c. Eli Heckscher

d. Bertil Ohlin

28. If Hong Kong and Taiwan had identical labor costs but were subject to increasing costs of

production:

a. Trade would depend on differences in demand conditions

b. Trade would depend on economies of large-scale production

c. Trade would depend on the use of different currencies

d. There would be no basis for gainful trade

29. If the international terms of trade settle at a level that is between each country’s opportunity

cost:

a. There is no basis for gainful trade for either country

b. Both countries gain from trade

c. Only one country gains from trade

d. One country gains and the other country loses from trade

30. International trade is based on the notion that:

a. Different currencies are an obstacle to international trade

b. Goods are more mobile internationally than are resources

c. Resources are more mobile internationally than are goods

d. A country’s exports should always exceed its imports

Use the graph shown in Figure 2.1 to answer Questions 31–34.

Figure 2.1. Production Possibilities Schedule

31. Refer to Figure 2.1. The relative cost of steel in terms of aluminum is:

a. 4.0 tons

b. 2.0 tons

c. 0.5 tons

d. 0.25 tons

32. Refer to Figure 2.1. The relative cost of aluminum in terms of steel is:

a. 4.0 tons

b. 2.0 tons

c. 0.5 tons

d. 0.25 tons

33. Refer to Figure 2.1. If the relative cost of steel were to rise, then the production possibilities

schedule would:

a. Become steeper

b. Become flatter

c. Shift inward in a parallel manner

d. Shift outward in a parallel manner

34. Refer to Figure 2.1. If the relative cost of aluminum were to rise, then the production possi-

bilities schedule would:

a. Become steeper

b. Become flatter

c. Shift inward in a parallel manner

d. Shift outward in a parallel manner

35. When a nation achieves autarky equilibrium:

a. Input price equals final product price

b. Labor productivity equals the wage rate

c. Imports equal exports

d. Production equals consumption

36. When a nation is in autarky and maximizes its living standard, its consumption and produc-

tion points are:

a. Along the production possibilities schedule

b. Above the production possibilities schedule

c. Beneath the production possibilities schedule

d. Any of the above

37. If Canada experiences increasing opportunity costs, its supply schedule of steel will be:

a. Downward-sloping

b. Upward-sloping

c. Horizontal

d. Vertical

38. If Canada experiences constant opportunity costs, its supply schedule of steel will be:

a. Downward-sloping

b. Upward-sloping

c. Horizontal

d. Vertical

39. The gains from international trade increase as:

a. A nation consumes inside of its production possibilities schedule

b. A nation consumes along its production possibilities schedule

c. The international terms of trade rises above the nation’s autarky price

d. The international terms of trade approaches the nation’s autarky price

40. In a two-country, two-product world, the statement ―Japan enjoys a comparative advantage

over France in steel relative to bicycles‖ is equivalent to:

a. France having a comparative advantage over Japan in bicycles relative to steel

b. France having a comparative disadvantage against Japan in bicycles and steel

c. Japan having a comparative advantage over France in steel and bicycles

d. Japan having a comparative disadvantage against Japan in bicycles and steel

41. Ricardo’s theory of comparative advantage was of limited real-world validity because it was

founded on the:

a. Labor theory of value

b. Capital theory of value

c. Land theory of value

d. Entrepreneur theory of value

42. Assume that labor is the only factor of production and that wages in the United States equal

$20 per hour while wages in the United Kingdom equal $10 per hour. Production costs would be lower in the United States than the United Kingdom if:

a. U.S. labor productivity equaled 40 units per hour while U.K. labor productivity equaled

15 units per hour

b. U.S. labor productivity equaled 30 units per hour while U.K. labor productivity equaled

20 units per hour

c. U.S. labor productivity equaled 20 units per hour while U.K. labor productivity equaled

30 units per hour

d. U.S. labor productivity equaled 15 units per hour while U.K. labor productivity equaled

25 units per hour

43. 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

44. The Ricardian model of comparative advantage is based on all of the following assumptions

except:

a. Only two nations and two products

b. Product quality varies among nations

c. Labor is the only factor of production

d. Labor can move freely within a nation

45. The writings of G. MacDougall emphasized which of the following as an explanation of a

country’s competitive position?

a. National income levels

b. Relative endowments of natural resources

c. Domestic tastes and preferences

d. Labor compensation and productivity levels

46. The introduction of community indifference curves into our trading example focuses atten-

tion on the nation’s:

a. Income level

b. Resource prices

c. Tastes and preferences

d. Productivity level

47. Introducing indifference curves into our trade model permits us to determine:

a. Where a nation chooses to locate along its production possibilities curve in autarky

b. The precise location of a nati on’s production possibilities curve

c. Whether absolute cost or comparative cost conditions exist

d. The currency price of one product in terms of another product

48. In the absence of trade, a nation is in equilibrium where a community indifference curve:

a. Lies above its production possibilities curve

b. Is tangent to its production possibilities curve

c. Intersects its production possibilities curve

d. Lies below its production possibilities curve

49. The use of indifference curves helps us determine the point:

a. Along the terms-of-trade line a country will choose

b. Where a country maximizes its resource productivity

c. At which a country ceases to become competitive

d. Where the marginal rate of transformation approaches zero

50. With trade, a country will maximize its satisfaction when it:

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

51. Trade between two nations would not be possible if they have:

a. Identical community indifference curves but different production possibilities curves

b. Identical production possibilities curves but different community indifference curves

c. Different production possibilities curves and different community indifference curves

d. Identical production possibilities curves and identical community indifference curves

52. Given a two-country and two-product world, the United States would enjoy all the attain-

able gains from free trade with Canada if it:

a. Trades at the U.S. rate of transformation

b. Trades at the Canadian rate of transformation

c. Specializes completely in the production of both goods

d. Specializes partially in the production of both goods

53. John Stuart Mill’s theory of reciprocal demand best applies when trading partners:

a. Are of equal size and importance in the market

b. Produce under increasing cost conditions

c. Partially specialize in the production of commodities

d. Have similar taste and preference levels

54. The equilibrium prices and quantities established after trade are fully determinate if we know:

a. The location of all countries’ indifference curves

b. The shape o f each country’s production possibilities curve

c. The comparative costs of each trading partner

d. The strength of world supply and demand for each good

55. ―The equilibrium relative commodity price at which trade takes place is determined by the

conditions of demand and supply for each commodity in both nations. Other things being equal, the nation with the more intense demand for the other nation’s exported good will gain less from trade than the nation with the less intense demand.‖ This statement was first proposed by:

a. Alfred Marshall with offer curve analysis

b. John Stuart Mill with the theory of reciprocal demand

c. Adam Smith with the theory of absolute advantage

d. David Ricardo with the theory of comparative advantage

56. Which of the following terms-of-trade concepts is calculated by dividing the change in a

country’s export price index by the change in its import price index between two points in time, multiplied by 100 to express the terms of trade in percentages?

a. Commodity terms of trade

b. Marginal rate of transformation

c. Marginal rate of substitution

d. Autarky price ratio

57. The best explanation of the gains from trade that David Ricardo could provide was to describe

only the outer limits within which the equilibrium terms of trade would fall. This is because Ricardo’s theory did not recognize how market prices are influenced by:

a. Demand conditions

b. Supply conditions

c. Business expectations

d. Profit patterns

58. Under free trade, Sweden enjoys all of the gains from trade with Holland if Sweden:

a. Trades at Holland’s rate of transformation

b. Trades at Sweden’s rate of transformation

c. Specializes completely in the production of its export good

d. Specializes partially in the production of its export good

59. Because the Ricardian trade theory recognized only how supply conditions influence inter-

national prices, it could determine:

a. The equilibrium terms of trade

b. The outer limits for the terms of trade

c. Where a country chooses to locate along its production possibilities curve

d. Where a country chooses to locate along its trade triangle

60. The terms of trade is given by the prices:

a. Paid for all goods imported by the home country

b. Received for all goods exported by the home country

c. Received for exports and paid for imports

d. Of primary products as opposed to manufactured products

Given the terms of trade data in Table 2.3, answer Questions 61–63.

Table 2.3. Terms of Trade

Export Price Index Import Price Index

Country 1990 2004 1990 2004

Mexico 100 220 100 200

Sweden 100 160 100 150

Spain 100 155 100 155

France 100 170 100 230

Denmark 100 120 100 125

61. Refer to Table 2.3. Which countries’ terms of trade improved between 1990 and 2004?

a. Mexico and Denmark

b. Sweden and Denmark

c. Sweden and Spain

d. Mexico and Sweden

62. Refer to Table 2.3. Which countries’ terms of trade worsened between 1990 and 2004?

a. Spain and Mexico

b. Mexico and France

c. France and Denmark

d. Denmark and Sweden

63. Refer to Table 2.3. Which country’s terms of trade did not change between 1990 and 2004?

a. Spain

b. Sweden

c. France

d. Denmark

64. Given free trade, small nations tend to benefit the most from trade since they:

a. Are more productive than their large trading partners

b. Are less productive than their large trading partners

c. Have demand preferences and income levels lower than their large trading partners

d. Enjoy terms of trade lying near the opportunity costs of their large trading partners

65. A terms-of-trade index that equals 150 indicates that compared to the base year:

a. It requires a greater output of domestic goods to obtain the same amount of foreign

goods

b. It requires a lesser amount of domestic goods to obtain the same amount of foreign

goods

c. The price of exports has risen from $100 to $150

d. The price of imports has risen from $100 to $150

66. A term-of-trade index that equals 90 indicates that compared to the base year:

a. It requires a greater output of domestic goods to obtain the same amount of foreign

goods

b. It requires a lesser amount of domestic goods to obtain the same amount of foreign

goods

c. The price of exports has fallen from $100 to $90

d. The price of imports has fallen from $100 to $90

67. The theory of reciprocal demand does not well apply when one country:

a. Produces under constant cost conditions

b. Produces along its production possibilities curve

c. Is of minor economic importance in the world marketplace

d. Partially specializes the production of its export good

68. The terms of trade is given by:

a. (Price of exports/Price of imports) – 100

b. (Price of exports/Price of imports) + 100

c. (Price of exports/Price of imports) ÷ 100

d. (Price of exports/Price of imports) × 100

69. If Japan and France have identical production possibilities curves and identical community

indifference curves:

a. Japan will enjoy all the gains from trade

b. France will enjoy all the gains from trade

c. Japan and France share equally in the gains from trade

d. Gainful specialization and trade are not possible

70. A rise in the price of imports or a fall in the price of exports will:

a. Improve the terms of trade

b. Worsen the terms of trade

c. Expand the production possibilities curve

d. Contract the production possibilities curve

71. A fall in the price of imports or a rise in the price of exports will:

a. Improve the terms of trade

b. Worsen the terms of trade

c. Expand the production possibilities curve

d. Contract the production possibilities curve

72. Under free trade, Canada would not enjoy any gains from trade with Sweden if Canada:

a. Trades at the Canadian rate of transformation

b. Trades at Sweden’s rate of transformation

c. Specializes completely in the production of its export good

d. Specializes partially in the production of its export good

Questions 73–78 are based on trade data for Canada as illustrated in Figure 2.2. The figure assumes that Canada attains international trade equilibrium at point C.

Figure 2.2. Canadian Trade Possibilities

73. Consider Figure 2.2. In the absence of trade, Canada would produce and consume:

a. 8 televisions and 16 refrigerators

b. 12 televisions and 16 refrigerators

c. 8 televisions and 12 refrigerators

d. 12 televisions and 8 refrigerators

74. Refer to Figure 2.2. Canada has a comparative advantage in:

a. Televisions

b. Refrigerators

c. Televisions and refrigerators

d. Neither televisions nor refrigerators

75. Consider Figure 2.2. With specialization, Canada produces:

a. 16 televisions

b. 12 televisions and 8 refrigerators

c. 8 televisions and 16 refrigerators

d. 24 refrigerators

76. Consider Figure 2.2. With trade, Canada consumes:

a. 12 televisions and 8 refrigerators

b. 12 televisions and 16 refrigerators

c. 8 televisions and 16 refrigerators

d. 24 refrigerators

77. According to Figure 2.2, exports for Canada total:

a. 16 refrigerators

b. 8 refrigerators

c. 12 refrigerators

d. 16 refrigerators

78. According to Figure 2.2, imports for Canada total:

a. 6 televisions

b. 8 televisions

c. 12 televisions

d. 16 televisions

79. Concerning possible determinants of international trade, which are sources of comparative

advantage? Differences in:

a. Methods of production

b. Tastes and preferences

c. Technological know-how

d. All of the above

80. Ric ardo’s model of comparative advantage assumed all of the following except:

a. In each nation, labor is the only input

b. Costs do not vary with the level of production

c. Perfect competition prevails in all markets

d. Transportation costs rise as distance increases between countries

81. Ricardo’s model of comparative advantage assumed all of the following except:

a. Trade is balanced, thus ruling out flows of money between nations

b. Firms make production decisions in an attempt to maximize profits

c. Free trade occurs between nations

d. Labor is immobile within a country, but is incapable of moving between countries

82. The dynamic gains from trade include all of the following except:

a. Economies of large-scale production resulting in decreasing unit cost

b. Increased saving and investment resulting in economic growth

c. Increased competition resulting in lower prices and wider range of output

d. Increasing comparative advantage leading to specialization

83. All of the following may be exit barriers except:

a. Employee health benefit costs

b. Treatment, storage and disposal costs

c. Penalties for terminating contracts with raw material suppliers

d. Increasing opportunity cost of production

84. Incomplete specialization may be caused by:

a. Increasing opportunity cost

b. Unrestricted trade

c. Constant opportunity cost

d. Decreasing opportunity cost

85. Improvements in productivity may lead to decreasing comparative costs if:

a. The assumption of fixed technologies under constant costs is relaxed

b. Technologies available to each nation is allowed to differ

c. Resource endowments are allowed to vary

d. All of the above

86. Adam Smith:

a. Was a leading advocate of free trade

b. Developed the concept of absolute advantage

c. Maintained that labor costs represent the major determinant of production cost

d. All of the above

87. Modern trade theory contends that the pattern of world trade is governed by:

a. Differences in supply conditions and demand conditions

b. Supply conditions only

c. Demand conditions only

d. None of the above

88. When nations are of similar size, and have similar taste patterns, the gains from trade are:

a. Shared equally between them

b. Impossible to determine

c. Too small, so that trading is not beneficial

d. Determined by the nation that has comparative advantage in the more essential product

89. The commodity terms of trade measures the:

a. Rate at which exports exchange for imports

b. Influence trade has on productivity levels

c. Effect on income of the trading nation

d. Improvement in a nation’s welfare

TRUE-FALSE QUESTIONS

T F 1. According to the mercantilists, a nation’s welfare would improve if it maintained

a surplus of exports over imports.

T F 2. The mercantilists maintained that a free-trade policy best enhances a nation’s welfare.

T F 3. The mercantilists contended that because one nation’s gains from trade come the expense of its trading partners, not all nations could simultaneously realize gains

from trade.

T F 4. According to the price-specie-flow doctrine, a trade-surplus nation would experi-ence gold outflows, a decrease in its money supply, and a fall in its price level.

T F 5. The trade theories of Adam Smith and David Ricardo viewed the determination of competitiveness from the demand side of the market.

T F 6. According to the principle of absolute advantage, international trade is beneficial to the world if one nation has an absolute cost advantage in the production of one

good while the other nation has an absolute cost advantage in the other good.

T F 7. The principle of absolute advantage asserts that mutually beneficial trade can occur even if one nation is absolutely more efficient in the production of all goods. T F 8. The basis for trade is explained by the principle of absolute advantage according to David Ricardo and the principle of comparative advantage according to Adam

Smith.

T F 9. The principle of comparative advantage contends that a nation should specialize in and export the good in which its absolute advantage is smallest or its absolute

disadvantage is greatest.

T F 10. The Ricardian theory of comparative advantage assumes only two nations and two products, labor can move freely within a nation, and perfect competition exists in

all markets.

T F 11. Assume that the United States is more efficient than the United Kingdom in the production of all goods. Mutually beneficial trade is possible according to the

principle of absolute advantage, but is impossible according to the principle of

comparative advantage.

T F 12. It is possible for a nation not to have an absolute advantage in anything; but it is not possible for one nation to have a comparative advantage in everything and

the other nation to have a comparative advantage in nothing.

T F 13. Ricardo’s theory of comparative advantage was of limited rele vance to the real world since it assumed that labor was only one of several factors of production. T F 14. Compared to Ricardian trade theory, modern trade theory provides a more gen-eral view of comparative advantage since it is based on all factors of production

rather than just labor.

T F 15. Constant opportunity costs suggest that the relative cost of producing one product in terms of the other will remain the same no matter where a nation chooses to

locate on its production-possibilities schedule.

T F 16. There are two explanations of constant opportunity costs: (1) factors of produc-tion are imperfect substitutes for each other; (2) all units of a given factor have

different qualities.

T F 17. With increasing opportunity costs, a nation totally specializes in the production of the commodity of its comparative advantage; with constant opportunity costs,

a nation partially specializes in the production of the commodity of its compara-

tive advantage.

T F 18. A nation’s trade triangle denotes its exports, i mports, and terms of trade.

T F 19. International trade leads to increased welfare if a nation can achieve a post-trade consumption point lying inside of its production-possibilities schedule.

T F 20. If the U.S. post-trade consumption point lies along its production possibilities schedule, the United States achieves a higher level of welfare with trade than

without trade.

T F 21. If productivity in the German computer industry grows faster than it does in the Japanese computer industry, the opportunity cost of each computer produced in

Japan increases relative to the opportunity cost of a computer produced in

Germany.

T F 22. If Japan loses competitiveness in computers, Japanese computer workers lose jobs to foreign computer workers and the wages of Japanese computer workers

tend to fall relative to the wages of foreign computer workers.

T F 23. With constant opportunity costs, a nation will achieve the greatest possible gains from trade if it partially specializes in the production of the commodity of its

comparative disadvantage.

T F 24. By reducing the overall volume of trade, import restrictions tend to reduce a nation’s gains from trade.

T F 25. With increasing opportunity costs, comparative advantage depends on a nation’s supply conditions and demand conditions; with constant opportunity costs, com-

parative advantage depends only on demand conditions.

T F 26. According to the principle of comparative advantage, an open trading system results in resources being channeled from uses of low productivity to those of

high productivity.

T F 27. The existence of exit barriers tends to delay the closing of inefficient firms that face international competitive disadvantages.

T F 28. MacDougall’s empirical study of comparative advantage was based on the notion that a product’s labor cost is underlaid by labor productivity and the wage rate.

T F 29. The MacDougall study of comparative advantage hypothesized that in those industries in which U.S. labor productivity was relatively high, U.S. exports to

the world should be lower than U.K. exports to the world, after adjusting for

wage differentials.

T F 30. The basic idea of mercantilism was that wealth consisted of the goods and ser-vices produced by a nation.

T F 31. According to Adam Smith, international trade was a ―w in-win‖ situation since all nations could enjoy gains from trade.

T F 32. The price-specie-flow mechanism illustrated why one nation’s gains from trade were accompanied by another country’s losses.

T F 33. Complete specialization usually occurs under the assumption of increasing opportunity costs.

T F 34. Adam Smith contended that gold, silver, and other precious metals constituted the wealth of a nation.

T F 35. The price-specie-flow mechanism illustrated why nations could not maintain trade surpluses or trade deficits over the long run.

T F 36. The marginal rate of transformation equals the absolute slope of a country’s production possibilities schedule.

T F 37. Assume that Germany has higher labor productivity and higher wage levels than France. Germany can produce a commodity more cheaply than France if its pro-

ductivity differential more than offsets its wage differential.

T F 38. Ricardo’s theory of comparative advantage does not take into account demand conditions when determining relative commodity prices.

T F 39. If Canada has a higher wage level and higher labor productivity than Mexico, Canada will necessarily produce a good at a higher labor cost than Mexico.

T F 40. If Argentina has a comparative advantage over Brazil in beef relative to coffee, Argentina will specialize in beef production.

T F 41. Modern trade theory recognizes that the pattern of world trade is governed by both demand conditions and supply conditions.

T F 42. A nation achieves autarky equilibrium at the point where its community indifference curve is tangent to its production possibilities schedule.

T F 43. In autarky equilibrium, a nation realizes the lowest possible level of satisfaction given the constraint of its production possibilities schedule.

T F 44. A nation benefits from international trade if it can achieve a higher indifference curve than it can in autarky.

T F 45. A nation realizes maximum gains from trade at the point where the international terms-of-trade line is tangent to its community indifference curve.

T F 46. The Ricardian theory of comparative advantage could fully explain the distribu-tion of the gains from trade among trading partners.

T F 47. Because the Ricardian theory of comparative advantage was based only on a nation’s demand conditions, it could not f ully explain the distribution of the gains

from trade among trading partners.

T F 48. Because the Ricardian theory of comparative advantage was based only on a nation’s supply conditions, it could only determine the outer limits within which

the equilibrium terms of trade would lie.

T F 49. The domestic cost ratios of nations set the outer limits to the equilibrium terms of trade.

T F 50. Mutually beneficial trade for two countries occurs if the equilibrium terms of trade lies between the two countries’ dom estic cost ratios.

T F 51. 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.

T F 52. 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.

T F 53. If the international terms of trade lies beneath (inside) the Mexican cost ratio, Mexico is worse off with trade than without trade.

T F 54. Although J. S. Mill recognized that the region of mutually beneficial trade is bounded by the cost ratios of two countries, it was not until David Ricardo

developed the theory of reciprocal demand that the equilibrium terms of trade

could be determined.

T F 55. According to J. S. Mill, if we know the domestic demand expressed by both trading partners for both products, the equilibrium terms of trade can be defined.

T F 56. The theory of reciprocal demand asserts that as the U.S. demand for Canadian wheat rises, the equilibrium terms of trade improve for the United States.

T F 57. Assume that Canada has a comparative advantage in wheat and a comparative disadvantage in autos. As the Canad ian demand for wheat increases, Canada’s

equilibrium terms of trade improves.

T F 58. The theory of reciprocal demand best applies when two countries are of equal economic size, so that the demand conditions of each nation have a noticeable

impact on market prices.

T F 59. The theory of reciprocal demand best applies when one country has a ―large‖ economy and the other country has a ―small‖ economy.

T F 60. If two nations of approximately the same size and with similar taste patterns participate in international trade, the gains from trade tend to be shared about

equally between them.

T F 61. The expression ―importance of being unimportant‖ suggests that if one nation is much larger than the other, the larger nation realizes most of the gains from trade

while the smaller nation realizes fewer gains from trade.

T F 62. An improvement in a nation’s terms of trade occurs if the prices of its exports rise relative to the prices of its imports over a given time period.

T F 63. If a country’s terms of trade worsen, it must exchange fewer exports for a given amount of imports.

T F 64. If a country’s terms of trade improve, it must exchange more exports for a given amount of imports.

T F 65. The terms of trade represents the rate of exchange between a country’s export s and imports.

T F 66. Assume 1990 to be the base year. If by the end of 2004 a country’s export price index rose from 100 to 130 while its import price index rose from 100 to 115, its

terms of trade would equal 113.

T F 67. Assume 1990 to be the base year. If by the end of 2004 a country’s export price index rose from 100 to 140 while its import price index rose from 100 to 160, its

terms of trade would equal 120.

T F 68. Assume 1990 to be the base year. If by the end of 2004 a country’s export price index rose from 100 to 125 while its import price index rose from 100 to 125, its

terms of trade would equal 100.

T F 69. The commodity terms of trade are found by dividing a country’s import price index by its export price index.

T F 70. For the commodity term s of trade to improve, a country’s export price index must rise relative to its import price index over a given time period.

T F 71. For the commodity terms of trade to improve, a country’s import price index must rise relative to its export price index over a given time period. ANSWERS

Answers to Multiple-Choice Questions

1. d

2. c

3. d

4. c

5. a

6. a

7. b

8. b

9. c

10. c

11. a

12. b

13. a

14. b

15. b

16. c

17. b

18. a 19. d

20. d

21. a

22. d

23. d

24. a

25. d

26. a

27. b

28. a

29. b

30. b

31. c

32. b

33. a

34. b

35. d

36. a

37. b

38. c

39. c

40. a

41. a

42. a

43. b

44. b

45. d

46. c

47. a

48. b

49. a

50. a

51. d

52. b

53. a

54. d

55. b

56. a

57. a

58. a

59. b

60. c

61. d

62. c

63. a

64. d

65. b

66. a

67. c

68. d

69. d

70. b

71. a

72. a

73. c

74. b

75. d

76. b

77. b

78. c

79. d

80. d

81. d

82. d

83. d

84. a

85. d

86. d

87. a

88. a

89. a

Answers to True-False Questions

1. T

2. F

3. T

4. F

5. F

6. T

7. F

8. F

9. F

10. T

11. F

12. F

13. F

14. T

15. T 16. F

17. F

18. T

19. F

20. F

21. T

22. T

23. F

24. T

25. F

26. T

27. T

28. T

29. F

30. F

31. T

32. F

33. F

34. F

35. T

36. T

37. T

38. T

39. F

40. T

41. T

42. T

43. F

44. T

45. T

46. F

47. F

48. T

49. T

50. T

51. F

52. T

53. T

54. F

55. T

56. F

57. F

58. T

59. F

60. T

61. F

62. T

63. F

64. F

65. T

66. T

67. F

68. T

69. F

70. T

71. F

自学考试_00153质量管理学_复习资料全

自考“质量管理学” 名词解释题汇总（1） 1、质量：根据国家标准GB/T6583—94，质量被定义为“反映实体满足明确或隐含需要的能力的特性总和”。 2、实体：可单独描述和研究的事物，它可以是活动和过程，也可以是产品，也可以是组织、体系、人以及上述各项的任何组合。 3、产品：某一活动和过程的结果。 4、产品质量：反映产品满足明确或隐含需要的能力的特性总和。 5、真正质量特性：直接反映顾客对产品期望和要求的质量特性。 6、代用质量特性：企业为了满足顾客期望和要求，相应地制定产品标准、确定产品参数来间接地反映真正质量特性。 7、过程：将输入转化为输出的一组彼此相关的资源和活动。 8、质量环：从最初识别需要到最终满足要求和期望的各阶段中影响质量的相互作用活动的概念模式。又称为质量螺旋或产品寿命周期。

9、质量管理：国家标准GB/T6583—94 给质量管理下的定义是：“确定质量方针、目标和职责，并在质量体系中通过诸如质量策划、质量控制、质量保证和质量改进使其实施的全部管理职能的所有活动。” 10、质量管理学：关于质量的一般规律、理论和方法的知识体系。通俗地说，就是研究产品质量产生、形成、实现过程客观规律的学科，既涉及经济学、管理学等社会科学，又涉及数学、数理统计等自然科学，并且与社会发展密切相关，因此属于“边缘学科”。 11、五方受益者：顾客、职工、所有者、供方、社会 12、全面质量管理：国家标准( CB/T6583—94)《质量管理和质量保证——术语》中对全面质量管理的定义是：“一个组织以质量为中心，以全员参加为基础，目的在于通过让顾客满意和本组织所有成员及社会受益而达到长期成功的管理途径。”具体地说，全面质量管理就是以质量为中心，全体职工以及有关部门积极参与，把专业技术、经营管理、数理统计和思想教育结合起来，建立起产品的研究、设计、生产、服务等全过程的质量体系，从而有效地利用人力、物力、财力、信息等资源，以最经济的手段生产出顾客满意的产品，使组织、全体成员和社会均能受益，从而使组织获得长期成功和发展。

管理学原理期末考试题目和答案

. . . . 《管理学原理》总复习与综合复习一、基本概念 1、管理是在特定的环境下，对组织所拥有的资源进行有效的计划、组织、领导和控制，以便达到既定的组织目标的过程。 2、决策是管理的基本要素。计划、组织、领导和控制都是管理的职能，而每项职能都要求做出迅速且明确的决定，这些都是决策问题。广义定义：人们为了实现目标，根据客观条件，通过调查和研究，在掌握大量有关信息和经验的基础上，借助一定的方法和手段，从众多方案中选择一个最满意或合理的方案并付诸实施的过程。狭义的决策：为达到某个目标，从众多方案中选定一个满意方案的行为，也就是通常所说的“决定” 、“拍板”、或“决断”。 3、保健因素是指工作环境或条件相关的因素，由于这类因素带有预防性，只起保持人的积极性、维持工作现状的作用。 4、控制对组织各方面的活动给以监控，使组织实际运行状况与组织计划要求保持动态适应的工作过程。这项工作由管理人员来做，并作为一项管理职能开展，通常称之为“管理控制” 。 5、反馈控制把组织系统运行的结果返送到组织系统的输入端，与组织预定的计划标准进行比较，然后找出实际与计划之间的差异，并采取措施纠正这种差异的一种控制方法。 6、管理幅度管理幅度也称为管理宽度，指一个管理者直接管理下级人员的数目。二、基本原理 1、决策的程序要使决策有效就要遵循科学的决策程序，一般来说，决策的程序可以分为一下几个步骤：（1）识别机会或诊断问题：问题是决策的起点，任何管理组织的进步、发展都是从发现问题开始，然后做出变革而实现的。这里的问题是指应有的状况和实际之间的差距。（2）确定决策目标：决策要求有明确而具体的决策目标。（3）拟定备选方案：决策的基本含义是抉择，这就要求至少有两个以上的可行方案。可行性方案要具备 3 个条件，能够保证决策目标的实现，组织外部环境和内部条件都有可行性，具有排他性。（4）分析评选备选方案：鉴定所有方案执行后可能产生的后果。要明智地评价备选方案，必须设法预测该方案执行后可能产生的后果，应尽量把所有可能都估计到。专注专业

计量经济学testbankquestionschapter

Correct answers denoted by an asterisk. 1. Consider the following model estimated for a time series y = + y t-1 - ?t-1 + ?t t where ?t is a zero mean error process. What is the (unconditional) mean of the series, y t ? (a) * (b) (c) (d) 2. Consider the following single exponential smoothing model: S = ? X t + (1-?) S t-1 t You are given the following data: ?=, X t=,S t-1= If we believe that the true DGP can be approximated by the exponential smoothing model, what would be an appropriate 2-step ahead forecast for X? . a forecast of X made at time t) t+2 (a) (b) * (c) (d) There is insufficient information given in the question to form more than a one step ahead forecast. 3. Consider the following MA(3) process. y = + + – + u t t What is the optimal forecast for y t, 3 steps into the future . for time t+2 if all information until time t-1 is available), if you have the following data? u = ; u t-2 = ; u t-3 = t-1 (a) (b) (c)* (d)– 4. Which of the following sets of characteristics would usually best describe an autoregressive process of order 3 . an AR(3))?

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浙江纺织服装职业技术学院关于加强国际合作与交流工作的意见信息来源：外事办公室为借鉴和吸收国际先进高职教育办学理念，适应高职教育国际化发展的需要，牢固树立教育国际化意识，根据省示范建设要求，结合学院实际，决定进一步加强国际合作与交流工作，大力推进国际化工程，提升开放办学水平和国际竞争力，将学院建设成具有一定国际影响力的示范性高职院校。现提出如下意见。一、加强国际合作与交流工作的意义学院一贯重视国际合作与交流工作，不断探索高等职业教育发展规律和人才培养新模式，以培养为地方经济社会发展服务的一线应用型技术人才和管理人才为己任，在国际合作办学和外国留学生教育等方面进行了有益的实践，积累了一些成功的经验，形成了自己的办学特色，在社会上产生了积极的影响，为进一步推进学院国际化办学奠定了坚实的基础。加强国际合作与交流工作，是国家政治外交战略大局、深入推进对外开放的重要组成部分，也是有效推动学院教学科研各项工作迈向国际先进水平的重要途径。在建设浙江省示范性高职院校的过程中，我们应该看到，国际化进程是衡量一所高校综合实力的重要指标，把国际化工程作为学院的发展战略，也是积极应对宁波乃至浙江外向型产业发展的要求。然而，在新形势下，学院的国际化工作还存在许多不足，主要表现在：国际交流与合作大多是存在院级层面，各二级学院在自身层面上寻找及开拓国际交流与合作不多；对国际化办学的内涵和重要性的认识还有待提高。为此，学院大力推进国际合作与交流工作有十分重要的意义。二、加强国际合作与交流工作的思路与内涵高职教育国际化是指一国的高职教育跨越国界、民族、文化的界限，面向世界通过多层次的交流与合作，博采各国高职教育之长，以人才培养为核心，以培养技术和应用能力为主要任务，在教学、科研、社会服务和学院管理等各项工作中，融入国际社会先进的教育理念、人才培养模式、课程设置、施教方式、管理方式、服务标准等，使自身的办学成果为国际高职教育界所接受和认可的过程。目前，学院正致力于建设浙江省示范性高职院校。我们要以科学发展观为指导，高度重视学院国际合作与交流工作的丰富内涵和重要意义，高度重视学院实施国际化工作面临的问题和挑战，充分利用学院已形成的品牌优势、综合实力优势、区位优势、政府支持优势，创新机制，探索和实践具有纺织、服装特色的高职院校国际化办学模式，打造提升核心竞争力，着力培养学生软实力，全面提高我院国际化工作水平。学院确立国际化发展战略，是要树立国际标杆，以国内外先进职业技术大学为赶超对象，放眼世界，与国际先进标准对接，参与国际运行规则和国际对话，打造精品名校。当前学院致力于加强国际交流与合作工作的主要内容有以下几个方面：（一）提高国际化意识高职教育观念的国际化包括以下几个方面：一是办学具有开放的心态和国际化视野；二是真正树立以人为本的观念；三是建立与国际接轨的人才培养、科学研究、管理服务、校园文化建设的体制机制；四是推进国际合作办学，将学院高职教育融入世界高职教育版图；五是树立将自己的办学思想、办学目标、办学模式、办学特色和办学质量主动向世界推介的意识。

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使合同最终被另一家公司截走。由于此合同对公司经营关系重大，董事会在讨论其中失误的责任时，存在以下几种说法，你认为哪一种说法最为合理？ (A) A、总经理至少应该承担领导用人不当与督促检查失职的责任 B、总经理的助手既然承接了该谈判的任务，就应对谈判承担完全的责任 C、若总经理助手又进一步将任务委托给其下属，则也可不必承担谈判失败的责任 D、公司总经理已将些事委托给助手，所以，对谈判的失败完全没有责任 6、关于正式组织与非正式组织的叙述，下列说法不正确的是（B） A、前者是经过人为筹划设计而形成的，后者是自发形成的 B、两者都有明确的组织目标 C、组织成员形成非正式组织的心理需要，正是正式组织不能满足的 D、非正式组织对于正式组织的影响具有两面性 7、根据价值链分析法，下列不属于基本活动的是（B）。 A、内部后勤 B、技术开发 C、生产作业 D、服务 8，下列关于强化理论的说法正确的是(A) 。 A、实施负强化，应以连续负强化为主。

投资学第7版testbank答案09

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