Suppose that under a gold standard, that the price of gold in the United States is $450 per ounce and the price of gold in the United Kingdom is 200￡ per ounce. The exchange rate is thus:

Consider a market in which a firm has monopoly power. Suppose in addition that the firm produces under the presence of either a positive or a negative extermality. Does the externality necessarily lead to a greater misallocation of resources？

假定货币需求取决于可支配收入，因此，货币市场方程式变为：M/P=L(r，Y-T)。分析在浮动汇率和固定汇率下小型开放经济中减税对汇率和收入的影响。

Suppose that money demand depends on disposable income, so that the equation for the money market becomes: M/P=L(r，Y-T). Analyze the impact of a tax cut in a small open economy on the exchange rate and income under both floating and fixed exchange rates.

关税同盟区，对汽车征收X%的关税，并假设日本的汽车生产成本为Y(欧元)。在下面的条件下，评价欧盟增加从波兰进口汽车会导致贸易创造还是贸易转移？

a.X=50%，Y=10000欧元。

b.X=100%，Y=10000欧元。

c.X=100%，Y=8000欧元。

Suppose that upon entering the European Union， it is discovered that the cost of automobile production in Poland is 14，000 while it is 20，000 in Germany. Suppose that the EU， which has a customs union， has a X percent tariff on automobiles and that the costs of production are equal to Y(valued in euros) in Japan. Comment on whether the addition of Poland to the European Union would result in trade creation or trade diversion under the following scenarios：

a.X=50%and Y=10000

b.X=100%and Y =10000

c.X=100%and Y=8000

品。参照第4章的分析方法，首先分析两国问贸易使劳动力流动动因减少的条件;然后，使用第5章中的分析方法说明一国征收关税能够产生劳动力流动的动因。

Suppose that a labor-abundant country and a land-abundant country both produce labor- and land-intensive goods with the same technology. Drawing on the analysis in Chapter 4， first analyze the conditions under which trade between the two countries eliminates the incentive for labor to migrate. Then， using the analysis in Chaptes 5， show that a tariff by one country will create an incentive for labor migration.

ncies respectively after reading the following letter．Dear Sirs,

We are pleased to inform you that the L/C No．101lA issued by the Bank of China under our S/C No．88008 has just been received．However, on examining the clauses contained in the L/C, we regretfully find that certain points are not in conformity with (do not conform to)the terms stipulated in the contract．The discrepancies are listed as follows:

1．Commission is 5% , not 6%;

2．Shipment will be made during June/July, instead of "on or before July";

3．Goods should be insured for 110% of the invoice value, not 150%;

4．"From China to Copenhagen port" should read" from Copenhagen to China";

5．The bill of lading should be marked "Freight Prepaid" instead of "Freight Collected";

We suppose(assume) that the above mistakes are clerical and hope you will amend the L/C accordingly．On receipt of your amendment to the L/C , we will arrange for the shipment without delay(immediately).

Your prompt attention to the above will be appreciated.

Yours faithfully,

ou find it is sour; you look at it, and see that it is hard and green. You take up another one, and that, too, is hard, green, and sour. The shopman offers you a third; but before biting it, you examine it, and you find that it is hard and green, and you immediately say that you will not have it, as it must be sour, like those that you have already tried.

Nothing can be simpler than that, you think; but if you will take the trouble to analyze and trace out into its logical elements what has been done by the mind, you will be greatly surprised. In the first place you have performed that operation of induction. You find that, in two experiences, hardness and greenness in apples went together with sourness. It was so in the first case, and it was confirmed by the second. True, it is a very small basis, but still it is enough from which to make the induction; you generalize the facts, and you expect to find sourness in apples where you get hardness and greenness. You found upon that a general law, that all hard and green apples are sour; and that, so far as it goes, is a perfect induction. Well, having got your natural law in this way, when you are offered another apple which you find is hard and green, you say, "All hard and green apples are sour; this apple is hard and green；therefore, this apple is sour." That train of reasoning is what logicians call a syllogism, and has all its various parts and terms--its major premises, its minor premises, and its conclusion. And, by the help of further reasoning, which, if drawn out, would have to be exhibited in two or three other syllogisms, you arrive at your final determination. "I will not have that apple." So that, you see, you have, in the first place, established a law by induction, and reasoned out the special particular case.

Well now, suppose, having got your conclusion of the law, that at sometime afterwards, you are discussing the qualities of apple with a friend; you will say to him, "It is a very curious thing, but I find that all hard and green apples are sour!" Your friend says to you, "But how do you know that？" You at once reply, "Oh, because I have tried them over and over again, and have always found them to be so." Well, if we were talking science instead of common sense, we should call that an experimental verification. And, if still opposed, you go further, and say, "I have heard from people in Somersetshire and Devonshire, where a large number of apples are grown, and in London, where many apples are sold and eaten, that they have observed the same thing. It is also found to be the case in Normandy, and in North America. In short, I find the universal experience of man- kind wherever attention had been directed to the subject." Whereon your friend, unless he is a very unreasonable man, agrees with you, and is convinced that you are quite right in the conclusion you have drawn. He believes, although perhaps he does not know he believes it, that the more extensive verifications have been made, the more results of the same kind are arrived at--that the more varied the conditions under which the same re- suits are attained, the more certain is the ultimate conclusion, and he disputes the question no further. He sees that the experiment has been tried under all sorts of conditions, as to time, place, and people, with the same result; and he says to you, therefore, that the law you have laid down must be a good one, and he must believe it. (654)

The writer is probably _______.

A．French

B．English

C．American

D．Italian

为：M/P=L(r，Y)。这里：P=λP_d+(1-λ)P_f/e，参数λ是物价指数P中国内产品的比例。假设国内产品价格P_d和用外国通货表示的外国产品价格P_f是固定的。

a．假定我们根据P_d与P_f给定的值(而不是通常所用的P)画出LM^*曲线。解释为什么在这个模型中这条LM^*曲线向右上方倾斜，而不是垂直的。

b．在这个模型中，在浮动汇率下，扩张性财政政策的影响是什么？请解释。与标准的蒙代尔—弗莱明模型进行对比。

c．假设政治不稳定提高了该国的风险贴水，从而使利率上升。在这个模型中，对汇率、物价水平和总收入的影响是什么？与标准的蒙代尔—弗莱明模型进行对比。

Suppose that the price level relevant for money demand includes the price of imported goods and that the price of imported goods depends on the exchange rate. That is, the money market is described by M/P=L(r，Y)，where P=λP_d+(1-_d)P_f/e. The parameter λ is the share of domestic goods in the price index P. Assume that the price of domestic goods P_dand the price of foreign goods measured in foreign currency P_fare fixed.

a．Suppose we graph the LM^*curve for given values of P_dand P_f(instead of the usual P). Explain why in this model this LM^*curve is upward sloping rather than vertical.

b．What is the effect of expansionary fiscal policy under floating exchange rates in this model？ Explain. Contrast with the standard Mundell-Fleming model.

c．Suppose that political instability increases the country risk premium and，thereby，the interest rate. What is the effect on the exchange rate, the price level, and aggregate income in this model？ Contrast with the standard Mundell-Fleming model.

Raju and His Father's Shop

My mother told me a story every evening while we waited for father to close the shop and come home. The shop remained open till midnight. Bullock-carts in long caravans arrived late in the evening from distant villages, loaded with coconut, rice, and other commodities for the market. The animals were unyoked under the big tamarind tree for the night, and the cartmen drifted in twos and threes to the shop, for a chat or to ask for things to eat or smoke. How my father loved to discuss with them the price of grain, rainfall, harvest, and the state of irrigation channels. Or they talked about old litigations. One heard repeated references to magistrates, affidavits, witnesses in the case, and appeals, punctuated with roars of laughter—possibly the memory of some absurd legality or loophole tickled them.

My father ignored food and sleep when he had company. My mother sent me out several times to see if he could be. made to turn in. He was a man of uncertain temper and one could not really guess how he would react to interruptions, and so my mother coached me to go up, watch his mood, and gently remind him of food and home. I stood under the shop-awning, coughing and clearing my throat, hoping to catch his eye. But the talk was all-absorbing and he would not glance in my direction, and I got absorbed in their talk, although I did not understand a word of it.

After a while my mother's voice came gently on the night air, calling, "Raju, Raju," and my father interrupted his activities to look at me and say, "Tell your mother not to wait for me. Tell her to place a handful of rice and buttermilk in a bowl, with just, one piece of lime pickle, and keep it in the oven for me. I'll come in later." It was almost a formula with him five days in a week. He always added, "Not that I'm really hungry tonight." And then I believe he went on to discuss health problems with his cronies.

But I didn't stop to hear further. I made a quick dash back home. There was a dark patch between the light from the shop and the dim lantern shedding its light on our threshold, a matter of about the yards, I suppose, but the passage through it gave me a cold sweat. I expected wild animals and supernatural creatures to emerge and grab mc. My mother waited on the doorstep to receive me and said, "Not hungry, I suppose! That'll give him an excuse to talk to the village folk all night, and then come in for an hour's sleep and get up with the crowing of that foolish cock somewhere. He will spoil his health."

I followed her into the kitchen. She placed my plate and hers side by side on the floor, drew the rice-pot within reach, and served me and herself simultaneously, and we finished our dinner by the sooty tin lamp, stuck on a nail in the wall. She unrolled a mat for me in the front room, and I lay down to sleep. She sat at my side, awaiting father's return. Her presence gave me a feeling of inexplicable coziness. I felt I ought to put her proximity to good use, and complained, "Something is bothering my hair," and she ran her fingers through my hair, and scratched the nape of my neck. And then I commanded, "A story."

Immediately she began, "Once upon a time there was a man called Devaka..." I heard his name mentioned almost every night. He was a hero, saint, or something of the kind. I never learned fully what he did or why, sleep overcoming me before my mother was through even the preamble.

Which of the following was NOT what we can infer from the conversation between Father and the cartmen？

A．Sometimes during lawsuits, one side or the other tricked the law, probably by finding faults in the legal code which were favorable to themselves.

B．There were times when the courts came to foolish decisions.

C．Matters related to fanning were of great interest to them.

D．The magistrates were ludicrous.

A.will you suppose

B.do you suppose

C.you suppose

D.you are suppose

A.do you suppose

B.will

C.you suppose

D.you would suppose