国际经济学作业答案第六章
国际经济学作业答案第
六章
Document number【AA80KGB-AA98YT-AAT8CB-2A6UT-A18GG】
C h a p t e r6E c o n o m i e s o f S c a l e,I m p e r f e c t C o m p e t i t i o n, a n d I n t e r n a t i o n a l T r a d e Multiple Choice Questions
1. External economies of scale arise when the cost per unit
(a) r ises as the industry grows larger.
(b) f alls as the industry grows larger rises as the average firm grows
larger.
(c) f alls as the average firm grows larger.
(d) r emains constant.
(e) N one of the above.
Answer: B
2. Internal economies of scale arise when the cost per unit
(a) r ises as the industry grows larger.
(b) f alls as the industry grows larger.
(c) r ises as the average firm grows larger.
(d) f alls as the average firm grows larger.
(e) N one of the above.
Answer: D
3. External economies of scale
(a) m ay be associated with a perfectly competitive industry.
(b) c annot be associated with a perfectly competitive industry.
(c) t ends to result in one huge monopoly.
(d) t ends to result in large profits for each firm.
(e) N one of the above.
Answer: A
4. Internal economies of scale
(a) m ay be associated with a perfectly competitive industry.
(b) c annot be associated with a perfectly competitive industry.
(c) a re associated only with sophisticated products such as aircraft.
(d) c annot form the basis for international trade.
(e) N one of the above.
Answer: B
5. A monopolistic firm
(a)can sell as much as it wants for any price it determines in the market.
(b) c annot determine the price, which is determined by consumer demand.
(c) w ill never sell a product whose demand is inelastic at the quantity
sold.
(d) c annot sell additional quantity unless it raises the price on each
unit.
(e) N one of the above.
Answer: C
6. Monopolistic competition is associated with
(a) c ut-throat price competition.
(b) p roduct differentiation.
(c) e xplicit consideration at firm level of the feedback effects of other
firms’ pricing decisions.
(d) h igh profit margins.
(e) N one of the above.
Answer: B
7. The most common market structure is
(a) p erfect competition.
(b) m onopolistic competition.
(c) s mall-group oligopoly.
(d) p erfectly vertical integration.
(e) N one of the above.
Answer: C
8. Modeling trade in monopolistic industries is problematic because
(a) t here is no one generally accepted model of oligopoly behavior.
(b) t here are no models of oligopoly behavior.
(c) i t is difficult to find an oligopoly in the real world.
(d) c ollusion among oligopolists makes usable data rare.
(e) N one of the above.
Answer: A
9. Where there are economies of scale, the scale of production possible in a
country is constrained by
(a) t he size of the country.
(b) t he size of the trading partner’s country.
(c) t he size of the domestic market.
(d) t he size of the domestic plus the foreign market.
(e) N one of the above.
Answer: D
10. Where there are economies of scale, an increase in the size of the market
will
(a) i ncrease the number of firms and raise the price per unit.
(b) d ecrease the number of firms and raise the price per unit.
(c) i ncrease the number of firms and lower the price per unit.
(d) d ecrease the number of firms and lower the price per unit.
(e) N one of the above.
Answer: C
11. The simultaneous export and import of widgets by the United States is an
example of
(a) i ncreasing returns to scale.
(b) i mperfect competition.
(c) i ntra-industry trade.
(d) i nter-industry trade.
(e) N one of the above.
Answer: C
12. If output more than doubles when all inputs are doubled, production is
said to occur under conditions of
(a) i ncreasing returns to scale.
(b) i mperfect competition.
(c) i ntra-industry trade.
(d) i nter-industry trade.
(e) N one of the above.
Answer: A
13. Intra-industry trade can be explained in part by
(a) t ransportation costs within and between countries.
(b) p roblems of data aggregation and categorization.
(c) i ncreasing returns to scale.
(d) A ll of the above.
(e) N one of the above.
Answer: D
14. If some industries exhibit internal (firm specific) increasing returns to
scale in each country, we should not expect to see
(a) i ntra-industry trade between countries.
(b) p erfect competition in these industries.
(c) i nter-industry trade between countries.
(d) h igh levels of specialization in both countries.
(e) N one of the above.
Answer: B
15. Intra-industry trade is most common in the trade patterns of
(a) d eveloping countries of Asia and Africa.
(b) i ndustrial countries of Western Europe.
(c) a ll countries.
(d) N orth-South trade.
(e) N one of the above.
Answer: B
16. International trade based on scale economies is likely to be associated
with
(a) R icardian comparative advantage.
(b) c omparative advantage associated with Heckscher-Ohlin factor-
proportions.
(c) c omparative advantage based on quality and service.
(d) c omparative advantage based on diminishing returns.
(e) N one of the above.
Answer: E
17. International trade based on external scale economies in both countries
is likely to be carried out
by a
(a) r elatively large number of price competing firms.
(b) r elatively small number of price competing firms.
(c) r elatively small number of competing oligopolists.
(d) m onopoly firms in each country/industry.
(e) N one of the above.
Answer: A
18. International trade based solely on internal scale economies in both
countries is likely to be carried out by a
(a) r elatively large number of price competing firms.
(b) r elatively small number of price competing firms.
(c) r elatively small number of competing oligopolists.
(d) m onopoly firms in each country/industry.
(e) N one of the above.
Answer: D
19. A monopoly firm engaged in international trade will
(a) e quate average to local costs.
(b) e quate marginal costs with foreign marginal revenues.
(c) e quate marginal costs with the highest price the market will bear.
(d) e quate marginal costs with marginal revenues in both domestic and in
foreign markets.
(e) N one of the above.
Answer: D
20. A monopoly firm will maximize profits by
(a) c harging the same price in domestic and in foreign markets.
(b) p roducing where the marginal revenue is higher in foreign markets.
(c) p roducing where the marginal revenue is higher in the domestic market.
(d) e quating the marginal revenues in domestic and foreign markets.
(e) N one of the above.
Answer: D
21. A firm in monopolistic competition
(a) e arns positive monopoly profits because each sells a differentiated
product.
(b) e arns positive oligopoly profits because each firm sells a
differentiated product.
(c) e arns zero economic profits because it is in perfectly or pure
competition.
(d) e arns zero economic profits because of free entry.
(e) N one of the above.
Answer: D
22. The larger the number of firms in a monopolistic competition situation,
(a) t he larger are that country’s exports.
(b) t he higher is the price charged.
(c) t he fewer varieties are sold.
(d) t he lower is the price charged.
(e) N one of the above.
Answer: D
23. The monopolistic competition model is one in which there is/are
(a) a monopoly.
(b) p erfect competition.
(c) e conomies of scale.
(d) g overnment intervention in the market.
(e) N one of the above.
Answer: C
24. In industries in which there are scale economies, the variety of goods
that a country can produce is constrained by
(a) t he size of the labor force.
(b) a nti-trust legislation.
(c) t he size of the market.
(d) t he fixed cost.
(e) N one of the above.
Answer: C
25. 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
(a) c onsumers in both countries would suffer higher prices and fewer
varieties.
(b) c onsumers in the importing country would suffer higher prices and
fewer varieties.
(c) c onsumers in the exporting country would suffer higher prices and
fewer varieties.
(d) c onsumers in both countries would enjoy fewer varieties available but
lower prices.
(e) N one of the above.
Answer: E
26. An industry is characterized by scale economies and exists in two
countries. In order for consumers of its products to enjoy both lower prices and more variety of choice,
(a) e ach country’s marginal cost must equal that of the other country.
(b) t he marginal cost of this industry must equal marginal revenue in the
other.
(c) t he monopoly must lower prices in order to sell more.
(d) t he two countries must engage in international trade one with the
other.
(e) N one of the above.
Answer: D
27. A product is produced in a monopolistically competitive industry with
scale economies. If this industry exists in two countries, and these two countries engage in trade one with the other, then we would expect
(a) t he country in which the price of the product is lower will export the
product.
(b) t he country with a relative abundance of the factor of production in
which production of the product is intensive will export this product.
(c) e ach of the countries will export different varieties of the product
to the other.
(d) n either country will export this product since there is no comparative
advantage.