國際經濟學模擬習題一、TrueorFalse （10*1’=10）Tradeisazero-sumactivity;ifonecountrygains,othermustlose.Anationmaximizessatisfactionbyreachingthehighestpossibleindifferencecurve,andintheabsenceofwillproducewhereitsproductionpossibilitiesscheduleistangenttoanindifferencecurve.Thefactorendowmentsmodelpredictsthatinternationaltradewilltendtoequalizethepricestrade-ablegoodsamongnations,buttoincreasethewagegapbetweencapital-abundantandlabor-abundantnations.Ataxof10percentonimportsofshoeswouldbeexampleofaspecifictariff.Animportquotawillnotraisethedomesticpriceoftheproductaswouldatariff,becauseitisnotataximports.Inbalance-of-paymentsaccount,atransactionresultinginreceiptofapaymentisrecordedasacredit,whereasatransactionresultinginapaymenttoothernationsisrecordedasadebit.Becausetheydonotincludeanexchangeofgoodsservices,unilateraltransfersdonotappearonanation'sbalanceofpaymentsaccount.DavidHumewasoneofthefirsteconomiststopr analyticalsupportformercantilisttradepolicies.Anationwouldbemostlikelytofinditstradebalanceimprovingafteracurrencydepreciationifthatnation’sdemandforimportsandforeigndemandforitswasveryinelastic.Anationwithneitherabalanceofpaymentssurplusabalanceofpaymentsdeficitissaidtobeininternalbalance.二、choices（15*3’=45’）ThelawofcomparativeadvantagewasratifiedbytheWorldTradeOrganizationexplainshowallcountriescanbenefitwheneachspecializesinproducingitemsinwhichithas therelativeefficiencyexplainshowonlythemostefficientnationscanbenefitfromtradeisusedtoevaluateacountry’smilitarystrengthThetheoryofabsoluteadvantagewasdevelopedbytheMercantilistsDavidHumeAdamSmithDavidRicardoDavidRicardodevelopedtheprincipleofcomparativeadvantageshowingthatanationmustbetheleast-costproducerofagoodintoexportthatitemnonationcouldhaveanabsoluteadvantageinallgoodsinatwo-countryexample,onlyonenationcanhavecomparativeadvantageevenanationthathaslowerproductivityinallgoodsbenefitbyexportingtheiteminwhichitisrelativelylessinefficientAnindifferencecurveshowsthatmostpeoplereallyareindifferentinternationaltradeshowsthedemandpreferencesofconsumersreflectstherelativecostsofproductionwithinanationindicateshowmuchlaboracountryhasTomaximizeitssatisfaction,anationwillensurethatterms-of-tradelineistangenttoitsproductionpossibilitiesfrontieratonepoint(productionpoint)andalsotothehighestattainableindifferencecurveatanotherpoint(consumptionpoint)istangenttoitsproductionpossibilitiesfrontierintersectsanindifferencecurveintersectsitsproductionpossibilitiesfrontierandtangenttoanindifferencecurveintersectsitsproductionpossibilitiesfrontieratoneandanindifferencecurveatanotherpointFactor-priceequalizationpredictsthatwithtradethepriceofanation’sabundantfactorwillriseandthatofitsscarcefactorwillfallthepriceofanation’s abundantfactorwillfallandthatitsscarcefactorwillrisethepricesofanation’sabundantandscarcefactorsbothwillrisethepricesofanation’sabundantandscarcefactorsbothwillfallTheeffectiverateofprotectiondistinguishesbetweentariffsthatareeffectiveandthatareineffectiveistheminimumlevelatwhichatariffbecomeseffectivelimitingimportsshowstheincreaseinvalue-addedfordomesticproductionthataparticulartariffstructuremakespossible,inpercentagetermsshowshoweffectiveatariffisinraisingrevenueTheinstitutionalframeworkdevelopedin1947totradeliberalizationisknownastheGATTtheWTOtheIMFTheWorldBankDevelopingnationshaveverylimitedinvolvementininternationaltradetrademostlywitheachotherrelyheavilyonexportsofprimaryproductstoindustrialnationsrelyheavilyonexportsofmanufacturedproductsAcustomsunionisuniqueinthatithasnotariffsontradeamongmembernationshasnotariffsontradeamongmembernationsandcommonsetoftariffsonimportsfromnon-membershasnotariffsontradeamongmembernations,asetoftariffsonimportsfromnon-members,andfreemobilityoffactorsofproductionsuchaslaborandcapitalamongmembersallowsunrestrictedlaborimmigrationfromnon nationsAnation'sbalanceofpaymentsstatementisarecordofthatnation'sassetsabroadanditsliab tothosefromothernationsisanaccountingadjustmentprocessensuringthatanation'sexportswillbeequaltoitsimports c.doesincludetransactionsofforeigncitizensorcompanieslivingoroperatingwithinthatnation d.isarecordofeconomictransactionsbetweenresidentsofthatnationandtherestoftheworld,usuallyforaperiodofoneyear.Sincebalance-of-paymentsaccountingisadouble-entryaccountingsystem,anexportofU.S.wheattoMexicopaidforbyadeposittotheU.S.exportersaccountinaMexicanbankwouldberecordedontheU.S.balanceofpaymentsacreditformerchandiseexportsandacredittoshort financialflowsacreditformerchandiseexportsandadebittoshort -termfinancialflows.acreditformerchandiseexportsandadebittounilateraltransfersacreditformerchandiseexportsandadebittoofficialsettlementsTheforeign-exchangemarketislocatedinNewYorkisamarketinChicagofortheinternationaltradingcommoditiessuchaswheatorcopper.isamechanismforindividualsandinstitutionsexchangeonenationalorregionalcurrencyordebtinstrumentforthoseofothernationsorregions.isopenfrom9:00a.m.to3:00p.m.NewYorkMondaythroughFriday.MarketfundamentalsthatmightbeexpectedtoinfluenceexchangeratemovementsincludeallofthefollowingexceptdifferencesinrealincomegrowthratesbetweencountriesdifferencesinrealinterestratesbetweencountriesspeculativeopinionaboutfutureexchangerateschangesinperceivedprofitabilityofeconomicinvestmentsbetweentwocountriesIfinflationishigherinMexicothanintheUnitedStates,thelawofonepricewouldpredictthattradebetweenMexicoandtheUnitedStateswoulddeclinethedollarpriceofautospurchasedinMexicowouldbehigherthanthedollarpriceofcomparableautospurchasedintheUnitedStatesthe peso would appreciate relative tothe dollar byamount equal in percentage terms to the differencebetweenthetwoinflationratesthe peso would depreciate relative tothe dollar byamount equal in percentage terms to the differencebetweenthetwoinflationrates三、Questions （45’,answerthesequestionsinChinese ）Assumethatlaboristheonlyfactorusedinproduction,andthat the costs ofproducing butter and cloth are given bythetablebelow.(8’)Costinlabor-hourstoproduceCostinlabor-hourstoproduceHomeForeign1unitofbutter1/811unitofcloth1/41/2Express theprice ofbutter relative totheprice ofcloth termsoflaborcontentforHomeandForeignintheabsenceoftrade.Whatdotheserelativepricesrevealabouteachcountry’scomparativeadvantage?Whatdotheserelativepricessuggestabouttheworldpriceofbutterrelativetocloththatwillexistoncethesecountriestradewitheachother?Iftheworldpricestabilizesat1withtrade,whatarethegainsbytheHomecountryachievedthroughtradewithForeigncountry?Explaintheimmiserizinggrowthandlistthecaseforimmiserizinggrowthtobeoccur.(8’)Explaintheexchangerateovershootingtheory(8’)Supposethatthenominalinterestrateon3-monthTreasurybillsis8percentintheUnitedStatesand6percentintheUnitedKingdom,andtherateofinflationis10percentintheUnitedStatesand4percentintheUnitedKingdom.(9’)Whatistherealinterestrateineachnation?Inwhichdirectionwouldinternationalinvestmentflowresponsetotheserealinterestrates?What impact would these investment flows have on thedollar’sexchangevalue?Whateffectsdoeslabormigra