L0101 Midterm Solutions

L0101 Midterm Solutions - IMPORTANT: Place your NAMEand ID...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
1 IMPORTANT: Place your NAMEand ID NUMBER on your scantron form. Economics 364H1F, Fall 2010 Assistant Professor Peter Morrow Midterm October 25th, 2010 L0101: 2:10pm-4:00pm SOLUTIONS 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. Failure to stop writing when told to do so will result in a 10 point deduction. 2. Place your NAME and ID NUMBER on your scantron form. 3. This exam has 100 points and is in two parts: Multiple Choice (15 questions @ 3 points each=45 total points) and two Long Questions (55 total points). For all questions, there is no penalty for guessing. 4. For the long question, clearly mark your final answer. 5. Failure to take the exam with the lecture in which you are enrolled will result in a 10 point deduction. 6. 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. 7. You are allowed to use simple (non-programmable) calculators. Programmable calculators are forbidden. Cell phones, Blackberrys, PDA’s, iPhones, and all devices that can contain programmable information are forbidden. 8. 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. GOOD LUCK!
Background image of page 1

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

View Full DocumentRight Arrow Icon
2 1) Assume that the Heckscher-Ohlin model holds. Consider two countries (Mexico and Costa Rica) and two factors of production (skilled and unskilled labor). Costa Rica possesses a relative abundance of skilled labor. For everyone to gain from trade in Mexico , there must be transfer payments from _________ in Mexico. a) (there need not be transfer payments for everyone to gain from trade) b) skilled labor to unskilled labor c) unskilled labor to skilled labor d) capital to labor e) labor to capital 2) Consider the following two production functions for agriculture and furniture where there are two factors of production: labor (L) and land (T). Q ag = L ag 0.5 T ag 0.5 Q furn = L furn 0.6 T furn 0.4 . Consider two countries: Canada and Japan. Which of the following sets of factor abundance will give Canada a comparative advantage in agriculture? a) L Can = 100 , L Jap = 100 , T Can = 100 , T Jap = 100 . b) L Can = 100 , L Jap = 150 , T Can = 100 , T Jap = 100 . c) L Can = 100 , L Jap = 150 , T Can = 100 , T Jap = 50 . d) (a) and (b). e) (b) and (c). 3) Which of the following is NOT TRUE regarding Canada’s pattern of trade since 1980 based on the data presented in class? a) The United States is Canada’s largest trading partner. b) Canada increases export shares of cars and airplanes during the period 1980-1990.
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 15

L0101 Midterm Solutions - IMPORTANT: Place your NAMEand ID...

This preview shows document pages 1 - 3. Sign up to view the full document.

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