ECON303 - Midterm01 - F10

ECON303 - Midterm01 - F10 - ECONOMICS 303 13~ oL-:: ..lb...

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Unformatted text preview: ECONOMICS 303 13~ oL-:: ..lb FALL 2010 MIDTERM #1 s-z NAME: r f 10 #: ~Y' Instructions: 6( oo J ::(ob'. Do not begin until you are instructed to do so. You may have out writing utensils. straight edge and calculator; everything else must be put away. The exam is closed notes and book. Answers are graded on the reasoning used to arrive at an answer. not simply on the answer. Thus. show all steps; do not skip any step!! Good luck!!! o THE TYPE OF THIS COpy IS 'A' o I. La~roductivity is: . ~ the number of units of output that a worker can produce in one hour. b. the total number of units that all workers in a firm produce in one day. c. the number of hours it takes a worker to produce one unit of output. d. the total number of hours it takes all the workers in a firm to produce a day's output, o Multiple Choice Questions Choose the ONE BEST answer to the questions below. Read the questions VERY CAREFULL Y, and check your work. (2 Points Each, Total 30 Points) Umbrellas per labor hour Units of corn per labor hour 1.00 2.. 0.20- o,ez..a I l.~ \p.50 . '\ ,11-) ;0.70-().~ 1.4..0 Table 1.1 In the United Kingdom In the Rest of the World Productivity / . / o 2. Refer to Table 1.1. Given the productivity information in Table 1.1, the rest of the world has an absolute advantage in the production of and the United Kingdom has an absolute advantage in the production of _ a. umbrellas; corn t('b) corn: umbrellas ~ corn; neither good d. neither good; umbrellas I Refer to Table 1.1. If the United Kingdom shifts I hour of labor from the production of corn to the production of umbrellas and the rest of the world shifts 1 hour of labor from-the production of umbrellas to the production of corn, total world production of corn will ___ by units and total world production of umbrellas will by a. increase; 1; decrease; I increase; 1.43; increase 1 increase; 0.5; increase; 0.5 decrease; 0.5; increase; 0.7 4. ; If a country exports the good that it can produce at a low opportunity cost and imports those goods that it would otherwise produce at a high opportunity cost, we say that such trade is based upon _ a. absolute advantage b. arbitrage ~ labor productivity differences o fl:!/ comparative advantage 2 3 o o o Table 1.2 In the United States In the France Labor hours to make: 1 gallon of Wine 1 pound of Cheese ~l.9_!D 2.00 4.00 eJJfD S. Refer to Table 1.2 and assume the United States and France trade only with each other.1....
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This note was uploaded on 04/07/2011 for the course ECON 303 taught by Professor Staff during the Fall '08 term at Sonoma.

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ECON303 - Midterm01 - F10 - ECONOMICS 303 13~ oL-:: ..lb...

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