ECON303 - Midterm01_Practice - F10

ECON303 - Midterm01_Practice - F10 - ECON 303 Fall 2009...

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Unformatted text preview: ECON 303, Fall 2009 Chong-Uk Kim Midterm #1 Version A NAME: _ ... _\.:.....~_ ..;:l!=-~ .:..;;:;_~;::_\..;;:;~:.= .... _ 10: _ Multiple Choice Questions Choose the ONE BEST answer to the questions below. Read the questions VERY CAREFULLY, and check your work. (5 Points Each, Total 85 Points) I. Based on mercantilist thinking, governments should a. subsidize and encourage imports. @ subsidize and encourage exports. c. allow for free trade unencumbered by government regulations and restrictions. d. both (a) and (b). Table 1 In the United Kingdom In the Rest of the World Labor hours to make: I umbrella 1 unit of corn 3.00 1.00 2.00 0.25 2. Refer to Table 1. The United Kingdom has an absolute advantage in the production of _____ and the Rest of the World has an absolute advantage in the production of a. neither good; corn (q) neither good; both goods c. both goods; neither goods d. corn; umbrellas 3. Refer to Table I. The United Kingdom has a comparative advantage in the production of ____ and the Rest of the World has a comparative advantage in the production of a. neither good; corn b. neither good; both goods @ umbrellas; corn d. corn; umbrellas 1 4. Refer to Table I. The opportunity cost of producing.a unit of corn in the United Kingdom is umbrellas and the opportunity cost of producing a unit of corn in the Rest of the World is umbrellas. a. 118; 1/3 (l?> 113; 1/8 c. 3; 8 d. 8;3 5. Refer to Table 1. The opportunity cost of producing an umbrella in the United Kingdom is units of corn and the opportunity cost of producing an umbrella in the Rest of the World is units of corn. a. 118; 113 b. 1/3; 1/8 © 3; 8 d. 8;3 6. Refer to Table 1. Once trade is opened, we can anticipate that the international price of umbrellas will lie between and- - - a. 1/3 of a unit of corn; 3 units of corn ''@ 8 units of corn; 3 units of corn c. 118 of a unit of corn; 1/3 of a unit of corn d. 8 units of com; 1/8 of a unit of corn 7. Refer to Table...
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ECON303 - Midterm01_Practice - F10 - ECON 303 Fall 2009...

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