364 Exam L5101 SOLUTIONS

364 Exam L5101 SOLUTIONS - IMPORTANT: Place your NAME and...

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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 6:10pm-8:00pm 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 (non-programmable) 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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2 Part 1: Multiple Choice Questions 1) Given a Heckscher-Ohlin world, suppose that there are two countries that produce two goods: a labor-intensive (X) and a capital-intensive good (Y). Suppose that one country is exogenously given more labor through population growth. The ____________ will predict that _____________. a) Stolper-Samuelson theorem, output of X will rise b) Stolper-Samuelson 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? a) The degree of globalization was fairly constant in the 20 th century. b) Japan is Canada’s largest trading partner. c) Canada exports computers only and imports textiles only. d) Chinese imports into Canada have grown substantially in the past 15 years. e) In 1970, Canadian trade with the United States was very limited but occurs in high volumes now. 3) In both the Ricardian and Heckscher-Ohlin models, the gains from trade come from a) increased competition that reduces monopoly profits. b) the nominal wages of all factors increasing.
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This note was uploaded on 03/27/2011 for the course ECO 364 taught by Professor Petermorrow during the Fall '10 term at University of Toronto- Toronto.

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364 Exam L5101 SOLUTIONS - IMPORTANT: Place your NAME and...

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