Chap004

Chap004 - Chapter 04 - Extensions and Tests of the...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Chapter 04 - Extensions and Tests of the Classical Model Chapter 04 Extensions and Tests of the Classical Model Multiple Choice Questions 1. In Table 1, with the given information, what will be the trade pattern if the two countries engage in trade? a. England will export good A and import goods B, C, D, and E B . England will export goods A and D and import goods B, C, and E c. England will export goods A, B, and E and import goods C and D d. England will export goods A, B, D, and E and import good C 2. In Table 1, suppose that one-half day of labor must be used to transport a good internationally, no matter which good is considered and which country is doing the exporting. With this addition of transportation costs, England will export good(s) __________ and will import good(s) __________. a. A; B, C, D, and E b. A and D; B, C, and E C . A; B, C, and E d. A; B and C 4-1 Chapter 04 - Extensions and Tests of the Classical Model 3. In the situation in Table 2, if trade is taking place, what is the "upper limit" to the U.S. worker's wage per day? a. $30 b. $40 c. $90 D . $120 4. In the situation in Table 2, if trade is taking place, what is the lower limit" to the U.S. worker's wage per day? a. $30 b. $40 C . $90 d. $120 4-2 Chapter 04 - Extensions and Tests of the Classical Model 5. Based on the information in Table 3, suppose that the wage rate in the United Kingdom is 30 per day, the wage rate in the United States is $40 per day, and the exchange rate is 1 = $1. In this situation, the United Kingdom will a. Export good T and import goods X and Y b. Export good Y and import goods T and X C . Export goods T and X and import good Y d. Export goods X and Y and import good T 6. Based on the information in Table 3, if the U.S. wage rate is $40 per day and the exchange rate is 1 = $1, what is the upper limit to the wage rate in the United Kingdom that is consistent with two-way trade between the countries?...
View Full Document

Page1 / 8

Chap004 - Chapter 04 - Extensions and Tests of the...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online