A product is produced in a monopolistically competitive industry with

1.According to the factor-price-equalization theorem, free trade equalizes:选项： A:Product prices as well as the prices of individual factors of production between two countries.; B:Product prices and factor prices within each country but not between countries.; C:Product prices between two countries but not the prices of individual factors of production.; D:Product prices between two countries and factor prices within each country but not between countries.

2. If the world equilibrium price of widgets were 4 Cloths, then 选项： A:both countries could benefit from trade with each other. B: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.

3.Which of the following is NOT true about absolute advantage? （）. 选项： A、According to Adam Smith, countries should specialize in the production of goods and then trade these for goods produced by other countries. B、According to Adam Smith, a country may also produce goods at home that it can buy at a lower cost from other countries. C、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. 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.

4.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.

5.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

6.An industry is characterized by scale economies, and exists in two countries. Should these two countries engage in trade such that the combined market is supplied by one country's industry, then _______.选项： A:consumers in both countries would have more varieties and lower prices.; B:consumers in both countries would have higher prices and fewer varieties.; C:consumers in the exporting country only would have higher prices and fewer varieties.; D:consumers in both countries would have fewer varieties at lower prices.

7.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

8. Prior to international trade, the price of good X is lower in country A than in country B. This means that we know that A: country B has an absolute advantage in the production of product X. B: country B has a comparative advantage in the production of product X. C: country A has an absolute advantage in the production of product X. D: country A has a comparative advantage in the production of product X.

9.Intra-industry trade will tend to dominate trade flows when which of the following exists? 选项： A、large differences between relative country factor availabilities B、small differences between relative country factor availabilities C、uneven distribution of abundant resources between two countries D、homogeneous products that cannot be differentiated

10.If there are a large number of firms in a monopolistically competitive industry 选项： A:the country in which the firms are located can be expected to export the goods they produce. B:long-run profit will be equal to zero. C:there will be a small number of firms that are very large and the rest will be very small. D:the firms will converge production on a standardized product. E:there will be barriers to entry that prevent additional firms from entering the industry.

11.A company allocates joint costs between products using the physical weight method. Which TWO of the following information will be required in order to perform the allocation? 选项： A、The quantity produced of each product B、The quantity sold of each product. C、The selling price of each product. D、The total joint costs of the production process. E、The quantity of extra materials added to each product after the joint process

12.63) Before trade, the price of good X is lower in country 选项： A、than in country B、This means that A) country B has an absolute advantage in the production of product X. B) country B has a comparative advantage in the production of product X. C、country A has an absolute advantage in the production of product X. D、country A has a comparative advantage in the production of product X.

13.A country has an absolute advantage in the production of a product when it: 选项： A、has the capability to produce the product within its boundaries. B、is more efficient than any other country in producing it. C、has the largest domestic demand for the product. D、has access to the raw materials needed to produce the product.

14.Refer to the table above. If you are told that Country B is very much richer than CountryA， then the correct answer is图选项： A: country B will export good S B: country A will export good S C: both countries will export good S D: trade will not occur between these two countries E: both countries will import good S

15.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.

16.Ricardo believed that the origin of international trade was ( ) 选项： A、Commodity prices vary from country to country B、Different countries have different factors of production endowments C、Factor prices vary from country to country D、The labor productivity of goods produced in different countries is different

17.Ricardo believed that the origin of international trade was ( ) 选项： A、Commodity prices vary from country to country B、Different countries have different factors of production endowments C、Factor prices vary from country to country D、The labor productivity of goods produced in different countries is different

18. Which one of the following is not a key assumption of perfect competition? 选项： A: Firms sell a homogeneous product. B: Customers are indifferent about which firm they buy from. C: The level of a firm’s output is small relative to the industry’s total output. D: Each firm can price its product above the industry price.

19.Which options are the right descriptions of the International product life cycle?选项： A:Stage 1: a company creates a new product to satisfy a market need. This generally takes place in a developed country.; B:Stage 2: sales in other developed countries start to grow, and local competitors see that there are enough customers to justify production of products that imitate the original product. Alternative processes or patents are developed. ; C:Stage 3: the manufacturing process has become much better known and almost routine.; D: A product will be manufactured in different countries over its life cycle.

20.Which options are the right descriptions of the International product life cycle?选项： A:Stage 1: a company creates a new product to satisfy a market need. This generally takes place in a developed country.; B:Stage 2: sales in other developed countries start to grow, and local competitors see that there are enough customers to justify production of products that imitate the original product. Alternative processes or patents are developed. ; C:Stage 3: the manufacturing process has become much better known and almost routine.; D: A product will be manufactured in different countries over its life cycle.

21.Trade between two countries can benefit both countries if A: each country exports that good in which it has a comparative advantage. B: each country enjoys superior terms of trade. C: each country has a more elastic demand for the imported goods. D: each country has a more elastic supply for the exported goods.

22. Trade between two countries will make each better off provided they are especially good at producing something different from the other. 选项： A: each better off provided they are B: a country better off provided both of the countries are each C: both better off provided each are D: both countries better off provided each is E: both better off if they are

23.GROSS DOMESTIC PRODUCT (GDP) KNOWLEDGEThe monetary value of all products and services produced in a country during one year is referred To as the 选项： A: gross national production. B: gross domestic product. C: national monetary reserve. D: monetary domestic product. E: annual national product.

24.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.