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11 Feb 2018
1.In the Ricardian model, wages are equal across industries because:
A.employers care for their workers.
B.workers prefer to work in exporting industries.
C.workers are freely mobile between industries.
D.workers are freely mobile between countries.
2.Suppose that the U.S. price index for its imports rose from 100 to 120 from 2010 to 2011 and the price index for its exports remained unchanged. Which of the following statements is CORRECT?
A.The U.S. terms of trade worsened between 2010 and 2011.
B.The U.S. terms of trade improved between 2010 and 2011.
C.The U.S. terms of trade improved in 2010 and worsened in 2011.
D.There was no change in the U.S. terms of trade between 2010 and 2011.
3.Assume that marginal product of labor is constant. If the maximum number of units of cloth produced is 300 and the maximum number of units of corn produced is 600, then with a MPLcloth = 2, what is the MPLcorn?
A.4
B.5
C.6
D.7
4.Suppose after opening up for trade the Home country produces 60 units of chemicals and 20 units of clothing. But Home consumes 40 units of chemicals and 60 units of clothing. What is the international price of chemicals?
A.1/2 unit of clothing per unit of chemicals
B.one unit of clothing per unit of chemicals
C.two units of clothing per unit of chemicals
D.three units of clothing per unit of chemicals
5.It can be shown that differences in âbefore-tradeâ relative prices will determine:
A.which nation has the absolute advantage.
B.which good each nation will export or import.
C.the quantity traded by each nation.
D.which nation has higher wages.
6.Suppose after opening up for trade the Home country produces 60 units of chemicals and 20 units of clothing. But Home consumes 40 units of chemicals and 60 units of clothing. Which product does Home export?â
A.Clothing
B.Chemicals
C.It exports neither chemicals nor clothing.
D.It exports both chemicals and clothing.
1.In the Ricardian model, wages are equal across industries because:
A.employers care for their workers.
B.workers prefer to work in exporting industries.
C.workers are freely mobile between industries.
D.workers are freely mobile between countries.
2.Suppose that the U.S. price index for its imports rose from 100 to 120 from 2010 to 2011 and the price index for its exports remained unchanged. Which of the following statements is CORRECT?
A.The U.S. terms of trade worsened between 2010 and 2011.
B.The U.S. terms of trade improved between 2010 and 2011.
C.The U.S. terms of trade improved in 2010 and worsened in 2011.
D.There was no change in the U.S. terms of trade between 2010 and 2011.
3.Assume that marginal product of labor is constant. If the maximum number of units of cloth produced is 300 and the maximum number of units of corn produced is 600, then with a MPLcloth = 2, what is the MPLcorn?
A.4
B.5
C.6
D.7
4.Suppose after opening up for trade the Home country produces 60 units of chemicals and 20 units of clothing. But Home consumes 40 units of chemicals and 60 units of clothing. What is the international price of chemicals?
A.1/2 unit of clothing per unit of chemicals
B.one unit of clothing per unit of chemicals
C.two units of clothing per unit of chemicals
D.three units of clothing per unit of chemicals
5.It can be shown that differences in âbefore-tradeâ relative prices will determine:
A.which nation has the absolute advantage.
B.which good each nation will export or import.
C.the quantity traded by each nation.
D.which nation has higher wages.
6.Suppose after opening up for trade the Home country produces 60 units of chemicals and 20 units of clothing. But Home consumes 40 units of chemicals and 60 units of clothing. Which product does Home export?â
A.Clothing
B.Chemicals
C.It exports neither chemicals nor clothing.
D.It exports both chemicals and clothing.
akunuru639Lv10
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