1
IMPORTANT:
Place your NAME and ID
NUMBER on your scantron form.
Economics 364H1F, Fall 2009
Professor Peter Morrow
Exam 1
SOLUTIONS
October 26th, 2009
Monday 6:10pm8:00pm
FORM 1
Fill in the information below:
Name______________________________
Student ID _________________________
INSTRUCTIONS
1.
Do not open this exam until you are told to do so. STOP work immediately when
told to do so.
2.
If you are not taking the exam in your assigned section, fifteen (15) points
will be deducted.
3.
Place your NAME and ID NUMBER on your scantron form.
4.
This exam has 100 points and is in two parts: Multiple Choice (17 questions @ 3
points each=51 total points) and a Long Question (49 total points). For all
questions, there is no penalty for guessing.
5.
For the multiple choice section, if more than one answer seems plausible choose
the best or most likely answer.
6.
For the long question, box your final answer.
7.
Your scantron will not be returned to you. Be sure to mark
your answers on the
exam booklet so that you will later have a record of your answers.
8.
You are allowed to use simple (nonprogrammable) calculators. Programmable
calculators are forbidden. Cell phones, blackberrys, PDA’s, IPODs, and all
devices that can contain programmable information are forbidden.
9.
Do not cheat. If you are caught cheating, I will penalize you to the greatest extent
allowed by the University. Possession of any forbidden item will be construed as
cheating.
10.
There are
ten
pages in this exam. Make sure you have all of them. The pages are
numbered.
GOOD LUCK!
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Part 1: Multiple Choice Questions
1) Given a HeckscherOhlin world, suppose that there are two countries that produce two goods:
a laborintensive (X) and a capitalintensive good (Y). Suppose that one country is exogenously
given more labor through population growth. The ____________ will predict that
_____________.
a) StolperSamuelson theorem, output of X will rise
b) StolperSamuelson theorem, output of Y will rise
c) Rybczynski theorem, output of Y will fall
d) Rybczynski theorem, the wage of labor will fall
e) Factor Price Equalization theorem, the wage of labor will fall
2) Given the data presented on the first day of class, which of the following statements is most
accurate?
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 Fall '10
 PeterMorrow
 Economics, Comparative Advantage, International Trade

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