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1. Which of the following is NOT a reason why countries trade goods with one another?
A) differences in technology used in different countries
B) differences in countries' total amount of resources
C) the proximity of countries to one another
D) differences in countries' languages and cultures
3. Which of the following is the MOST likely explanation for a Detroit construction
company's imports of concrete blocks made in Windsor, Ontario?
A) the Ricardian model
B) offshoring
C) technology
D) proximity
4. What is the MOST likely reason why neighboring nations engage in trade?
A) labor availability
B) similar tastes and preferences
C) proximity
D) shared membership in a free-trade area
Page 2
7. When a firm in one nation purchases unfinished products internationally and adds
further processing to sell in the domestic market, this is known as:
A) barter.
B) offshoring.
C) factor movement.
D) marketing arrangements.
8. In some cases, a country can export a good without having any advantage in the natural
resources needed to produce it. Which of the following is an example of this type of
export?
A) Austrian exports of snowboards
B) U. S. exports of “icewine”
C) Japanese exports of Toyotas
D) Canadian exports of lumber
9. In some cases, a country can export a good without having any advantage in the natural
resources needed to produce it. Which of the following is an example of this type of
export?
A) United Arab Emirates's exports of high-quality snowboards
B) U. S. exports of Caterpillar bulldozers
C) French exports of wine
D) Canadian exports of lumber
10. In trade, if a nation has the technology to produce a good with fewest resources (such as
Germany's production of snowboards), it is known as a(n):
A) absolute advantage.
B) technology advantage.
C) comparative advantage.
D) resource advantage.
Page 3
12. When a country requires fewer resources to produce a product than other countries, it 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) higher opportunity cost of producing the product.
D) lower opportunity cost of producing the product.
13. When a country requires more resources to produce a product than other countries, it is
said to have a(n):
A) absolute disadvantage in the production of the product.
B) comparative disadvantage in the production of the product.
C) lower opportunity cost of producing the product.
D) higher opportunity cost of producing the product.
14. The primary explanation of trade among nations is Ricardo's theory of:
A) offshoring.
B) resource abundance.
C) absolute advantage.
D) comparative advantage.
16. Ricardo's theory of trade discredited the school of economic thought that believed
inflows of gold or silver as a result of exporting helped a nation, while outflows of gold
or silver as a result of importing hurt a nation. This school of economic thought was
known as:
A) export preference.
B) mercantilism.
C) monetary economics.
D) price-specie-flow mechanism.
Page 4
17. Ricardo's theory made a number of assumptions, including which of the following?
A) Nations had balanced trade with their partners.
B) There were barriers to trade.
C) There was no transfer of gold or silver.
D) Nations' factors of production consisted of labor and capital.
Page 5
22. Ricardo's theory showed that if nations are allowed to trade freely, the result will be
that:
A) all trading nations benefit by trade.
B) the manufacturing sector benefits but the consumers lose out.
C) workers benefit but the government loses tax revenue.
D) the gains from trade offset the losses from trade exactly.
23. The Ricardian model can be simplified and made more explanatory by assuming that
there is only one resource used in producing goods. What did Ricardo assume the
resource was?
A) capital
B) technology
C) labor
D) loanable funds
26. The Ricardian model assumes that the marginal product of labor is:
A) increasing.
B) decreasing.
C) constant.
D) zero.
Page 6
28. When the production possibilities frontier is a straight line, then production occurs
under conditions of:
A) increasing costs.
B) decreasing costs.
C) constant costs.
D) increasing, then decreasing, then constant costs.
29. The Ricardian model employs the concept of alternate uses of economic resources in
production. We refer to this technique as:
A) the production possibilities frontier.
B) the labor theory of value technique.
C) the least-cost option.
D) the labor productivity model.
30. With the assumption that the marginal product of labor is constant and that labor is the
only variable resource, the slope of the PPF is:
A) positive and increasing.
B) negative and decreasing.
C) negative and constant.
D) unrelated to the issue at hand.
31. Assume the MPLt = 5 tennis rackets and MPLb = 4 baseball bats. If the economy has
100 workers, then the economy can produce:
A) a maximum of 500 tennis rackets.
B) a maximum of 350 baseball bats.
C) 500 tennis rackets and 400 baseball bats.
D) either 100 tennis rackets only or 100 baseball bats only.
32. Assume the MPLc = 2 cars and the MPLb = 5 boats. There are 150 workers in this
hypothetical economy. What is the maximum number of boats that can be produced?
A) 30
B) 300
C) 750
D) 150
Page 7
33. The slope of the PPF can be expressed as:
A) the ratio of abundance of capital to labor.
B) the preferences of consumers in terms of marginal utility.
C) the ratio of the quantities of good 1 and good 2.
D) the negative of the ratio of the marginal products of labor in producing each good.
34. If the maximum number of units of cloth produced is 300 and the maximum number of
units of corn produced is 600, then with an MPLcloth = 2, what is the number of workers
in the economy?
A) 100
B) 200
C) 150
D) 600
35. If the maximum number of units of cloth produced is 300 and the maximum number of
units of corn produced is 600, then with an MPLcloth = 2, what is the MPLcorn?
A) 4
B) 5
C) 6
D) 7
36. To complete the model of international trade using the PPF, we must also use the idea of
indifference curves. One of these curves represent:
A) a set of alternate quantities of both goods (sloped negatively), whereby consumers
are equally satisfied in their level of utility gained.
B) consumers who are indifferent to everything.
C) producers who do not care which production method is chosen.
D) a fixed quantity of one good (such as wheat) and a varying amount of the other
good.
37. As a consumer moves down one of her indifference curves, her satisfaction:
A) falls.
B) rises.
C) remains unchanged.
D) first falls, then levels out.
Page 8
38. If a consumer moves to a higher indifference curve, her satisfaction:
A) falls.
B) rises.
C) remains unchanged.
D) first falls, then levels out.
40. (Figure: Home Production and Consumption) The figure gives Home's international
trading pattern. Point P is production with trade, and point C is consumption with trade.
Which product does Home export?
A) clothing
B) chemicals
C) It exports neither chemicals nor clothing.
D) It exports both chemicals and clothing.
Page 9
41. (Figure: Home Production and Consumption) The figure gives Home's international
trading pattern. Point P is production with trade, and point C is consumption with trade.
Which product does Home import?
A) clothing
B) chemicals
C) It imports neither chemicals nor clothing.
D) It imports both chemicals and clothing.
42. (Figure: Home Production and Consumption) The figure gives Home's international
trading pattern. Point P is production with trade and point C is consumption with trade.
How many units of which product does Home export and how many units of which
product does it import?
Page 10
43. (Figure: Home Production and Consumption) The figure gives Home's international
trading pattern. Point P is production with trade, and point C is consumption with trade.
What is the international price of chemicals according to the figure?
44. Where will a nation that gains from trade find its consumption point located?
A) inside its production possibilities frontier
B) along its production possibilities frontier
C) outside its production possibilities frontier
D) at the center of its production possibilities frontier
45. When a nation is in autarky (a no-trade state) and maximizes its living standard, its
consumption and production points are:
A) along its production possibilities frontier.
B) above its production possibilities frontier.
C) beneath production possibilities frontier.
D) along, above, or beneath its production possibilities frontier.
46. Assume the MPLc = 2 cars and the MPLb = 5 boats. There are 150 workers in this
hypothetical economy. If cars are measured on the vertical axis and boats are measured
on the horizontal axis, the slope of the PPF for this economy is:
A) –5.
B) –5/2.
C) –2/5.
D) –1/5.
Page 11
47. The slope of the PPF can also be expressed as:
A) the ratio of abundance of labor to capital.
B) consumer utility.
C) the opportunity cost of the good measured on the vertical axis.
D) the ratio of the marginal products of labor to the marginal product of capital.
48. (Figure: Home Equilibrium with No Trade) Under the condition of no trade, which
attainable combination gives the nation the MOST utility?
A) A
B) B
C) C
D) D
Page 12
49. (Figure: Home Equilibrium with No Trade) Under the condition of no trade, which
combinations are NOT attainable?
A) A and D
B) A and B
C) B and D
D) B and C
50. (Figure: Home Equilibrium with No Trade) Suppose that trade occurs and Home finds
its comparative advantage in the production of wheat. How many bushels of wheat will
it produce?
A) 0 bushels
B) 50 bushels
C) 100 bushels
D) between 50 and 100 bushels
Page 13
51. Assume a hypothetical economy where cloth and wheat can be produced. What is the
opportunity cost of producing wheat in this economy?
A) the amount of cloth that must be given up to produce one more unit of wheat
B) the amount of money received by selling wheat
C) the number of workers it takes to produce all the wheat
D) More information is needed to answer the question.
52. Among the indifference curves for an economy, to achieve higher utility:
A) you must move to the indifference curve farthest away from the origin.
B) you must move to the indifference curve closest to the origin.
C) it is necessary to always close the borders.
D) it does not matter which indifference curve you select; your utility is the same
along every curve.
53. If the opportunity cost is constant (the PPF is a straight line), then a country will:
A) partially specialize in the production of its exported product.
B) completely specialize in the production of its exported product.
C) not benefit from importing goods from another country.
D) benefit by raising trade barriers.
55. In order for the production possibilities frontier to be a straight line, production must
exhibit:
A) increasing costs.
B) decreasing costs.
C) constant costs.
D) increasing, then decreasing, then constant costs.
Page 14
57. A country's indifference curve describes combinations of goods that:
A) a country can purchase.
B) yield equal satisfaction to a country.
C) yield satisfaction to a country.
D) a country can produce.
58. (Figure: Indifference Curves) If this economy produces no cloth, how many units of
wheat are possible?
A) 50
B) 200
C) 300
D) 400
Page 15
Another random document with
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“Study your spelling, Charlie.”
“Charlie, come up here and stand by my desk.”
And so throughout the year, Miss Marlowe ignored the facts that
ought to have led to a reformation of this little boy’s habits.
CONSTRUCTIVE TREATMENT
When a child shows he has not been given careful teaching relative
to sex hygiene, go to his mother and advise her to take the child to a
physician. Explain the physical as well as the moral and mental help
it may be to the child to have one of two very slight operations
performed, after which, with proper diet and bathing, the boy may
easily forget his wrong habits.
COMMENTS
Miss Vane saw a note fall upon Mary Pratt’s desk. She said,
“Mary, bring that note to me.”
The child, she knew had not yet read the note. Greatly
embarrassed, Mary looked questioningly at Clyde Mitchel before
starting toward Miss Vane.
Contrary to the courtesy which teachers Improper Notes
admonish pupils to show, Miss Vane stood
up, opened the note and perused it in the presence of the school.
While she was looking at the note, Clyde Mitchel buried his scarlet
face in his book.
“You wrote this note, didn’t you, Clyde?” asked Miss Vane.
Clyde only nodded “Yes,” and burrowed even deeper into his book.
“This is a shameful note,” said Miss Vane. “It contains words that
no child should ever write or speak. You may stay after school,
Clyde.”
The boys waited at the second corner from the school house for
Clyde after school.
In about ten minutes Clyde came running toward them.
“What did she do, Clyde?” they asked.
“Aw, nothing; she just preached a little and gave me a few licks
that wouldn’t hurt a baby.”
“What was in the note, anyway?”
He told them exactly what was in the note, and a loud “Hurray!”
went up from the group of listeners. The subject of conversation
among these boys as they went on down the street was as full of
unclean words and suggestions as the worst boys in the group could
think up.
CONSTRUCTIVE TREATMENT
If you can not deal with sex subjects privately, with pupils in the
lower grades, do not deal with them at all. Miss Vane made a mistake
in reading or referring to the note in the presence of others. In her
efforts to suppress such foul communications she occasioned a talk
upon the unnamable topics by all of her own room and many in other
rooms as well.
COMMENTS
CONSTRUCTIVE TREATMENT
Miss Terman should have drawn Pearl into the games of the other
girls early in the year. She should have said to the leader among the
girls, in private. “You have it in your hands to make a classmate
happy or miserable. You, yourself, will enjoy school better if no girl is
made sad and lonely. I know that the other girls will follow your lead
and, therefore, I desire that you invite Pearl Goodwin into your
school games and give her an opportunity to know and like good
company.”
COMMENTS
CONSTRUCTIVE TREATMENT
COMMENTS
Miss Fanson was a high school teacher who was justly admired by
the girls under her care. She had talked to the girls about the
deference and homage which they should show to their parents in
social matters. Alice Grant believed that Miss Fanson was exactly
right, hence was willing to act upon her teacher’s advice.
Since she had entered high school, boys had suddenly become very
interesting to Alice. She blushed one afternoon as she plucked up her
courage to reveal certain developments to her mother.
“Mother, the Freshmen are going to give a party, and a boy in my
German class has asked me to go. May I?” Her voice affected
indifference.
But Mrs. Grant knew her young daughter Retaining
and saw through that coolness. Her Alice Control
was excited and flushed and happy over a boy! And she stared
blankly for a moment as the realization forced its way. Then a
tempestuous refusal from a heart that resented her little girl’s
growing up sprang swiftly to her lips, but she kept back the words. It
did, indeed, hurt to have Alice begin to be a young lady, but could
even she, the most adoring of mothers, restrain time and the youth
that was blossoming in her child?
“I’ll have to think it over, Alice. I’ll tell you in the morning.”
And Alice went to her studying, confident that, whatever her
mother decided, she would be just and allow only big reasons to
weigh with her.
Mrs. Grant thought it over and that night talked it over with her
husband.
“She’s absurdly young—only fifteen,” he objected.
“Yes, but absurdly natural, too, and strong in her desires. I fear, if I
refuse, it may only surround boys with a mysterious glamour for her,
and she might then be tempted to associate with them in spite of me,
and any secrecy or deceit just now is dangerous. And you know our
Alice is growing pretty.”
Mr. Grant regretted and bemoaned the loss of his little girl, but
agreed. “But who is this boy?” he demanded. “Do you know him?”
“No. But I’m going to know all her friends from now on.”
And next morning, when Alice, pink-cheeked and eager-eyed,
sought her mother’s decision, she welcomed the “Yes” with a little
squeal of delight.
“But I’ve been thinking, Alice,” her mother added, “that I’d like to
know the boys and girls you’re going with. Wouldn’t you like to ask
some of them over here some evening before the party?”
“Would I? Well, rather! Mother, you’re a dear.”
“And what about a dress. I suppose you’d like a new one?” Further
question was stifled by an enthusiastic hug.
So they talked of the party and the dress, and then it was not far to
“the boys” and Alice’s new feeling for them. And Mrs. Grant felt that
the sweet intimacy she was entering with this new daughter more
than compensated for the loss of the little girl, who had suddenly
become a young woman.
When Alice returned from the party her mother showed interest in
each detail that her daughter related. She remarked: “You must have
had loads of fun—what did you have to eat? What did you especially
like in the conduct of your classmates?” It is while such concrete
subjects are being discussed that much guidance can be given the
daughter in her formation of opinions as to what is proper or
improper conduct. A teacher who brings about such intimacy as this
incident illustrates has done much for both mother and daughter.
ILLUSTRATION 2 (HIGH SCHOOL)
CONSTRUCTIVE TREATMENT
COMMENTS
The amative impulses of youth are not vicious, but need direction
and control. Self-control, above all else, is to be taught, and the
teaching must often be reinforced by wise, friendly restraint. Frank
friendships are to be encouraged; sickly, silly sentimentality laughed
out of court. If a teacher, instead of standing ready to give this help
and guidance when it is needed, encourages a sentimental devotion,
as Miss Kingsley did, the most fundamental safeguard of youth is
sacrificed—the ideal of controlled emotion, of a conscious saving of a
sacred experience for the future. A large range of interests, a healthy
balance of activities, and a wholesome unconsciousness of self, tend
to keep young people simple and child-like in their emotional lives.
Above all, no teacher has any business to give the impression that he
alone appreciates youth and its promise, or to make his relations
with impressionable boys and girls unduly personal.
Mr. Bradley was principal for two years of the Newcastle school.
He revealed his characteristics as a teacher so fully that we find in
him an example of the type not to be recommended and yet one that
is very instructive for students of school discipline.
In stature he was slightly below medium height. He came from
rural ancestry and was fairly well equipped as to physique. He had
black hair and eyes, somewhat mobile features and a wandering
gaze. His movements could hardly be called quick, but they were
prompt and without distinct mannerisms.
He had a most gracious manner when meeting people on the street
or in their homes. He spoke kindly to everyone and had the
reputation among the townspeople of being a royal, good fellow.
Even his pupils could not deny that he treated them very courteously
and jovially outside of school hours.
Despite all this he used essentially the method of the hen-pecking
incompetent when handling disciplinary matters in school. The
moment he entered the school precincts he was a different man. His
countenance then betrayed the sternness of the schoolmaster who
dwelt within and apart from the polite gentleman he seemed to be
when outside the school-room. His eyebrows gathered and his
muscles reverberated with the sense of authority that flooded his
whole nature.
His eye was on the lookout for misdemeanors and if a pupil made a
misstep in the realm where Mr. Bradley thought he had jurisdiction,
that harsh, strident voice, with but the slightest trace of fellow-
feeling, spoke the word of correction or announced an impending
penalty.
In the school-room it was his delight to slip up behind an offender
and pluck him by the ear as a reminder of duty. Being the only
instructor who indulged in this practice it soon came to be one of the
most odious signals of his presence in the room. When absorbed in
his subject he made instruction interesting; his pupils could not fail
to learn if they did not venture to vary the program by misconduct.
However, their recollection of his general attitude toward them, the
ease with which they could upset his plans by introducing a few
school pranks, the certainty that he would lose his temper on slight
provocation, always hung as a barrage screen between them and
undivided concentration on the subject-matter of their lessons.
Mr. Bradley made it a practice to watch for accumulating offenses.
He felt incompetent to handle minor evils, but attempted to squelch
a wayward pupil by reciting a list of grievances and applying
penalties for the same. He had a good memory for facts of this sort.
He could shake his finger in the face of a boy or girl and say, “Didn’t
you pull Esther’s hair yesterday ... trip up Jimmie on the way to class
in geometry and purposely spill the crayons when you were at the
board? Now, I have had enough of this. I want to know what you are
going to do about it.”
This gentleman could not catch the drift of things. Early in his first
year Mr. Bradley’s attention rested upon Ted. Ted was a short,
heavy-set chap of some fourteen years, incapable of any
revolutionary propensities, but able to interest himself with a variety
of aggravating tricks. His pranks were individually almost too small
to command severe penalties, but they were too annoying to escape
the principal’s eye.
Unfortunately, Mr. Bradley hit upon the lash as a cure for Ted.
Selecting a more pronounced misdemeanor as an opportunity for
settling accounts with the troublesome pupil, he gave him a sound
whipping.
There was some ground for the general protest that arose from the
high school. Ted was a favorite with every one. The crude principal
had struck one but he had wounded all. His untactfulness had made
him abhorrent to all, even to those who had not hitherto drawn upon
themselves his specific disapproval and useless punishments. Mr.
Bradley, perhaps, never knew that he had undermined his own
usefulness as much by this treatment of a school favorite as by any
single deed that transpired during his whole stay in Newcastle.
He had his own method of handling the problem of whispering. He
made it a rule that every pupil in high school must answer at roll call
at the end of the day on the matter of whispering. If a pupil had
whispered he must answer “Present,” and specify the number of
times during the day he had whispered. If he had a clear record on