{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Week 3 MidTerm - Week 3 MidTerm Grade Details1.Question In...

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

View Full Document Right Arrow Icon
Week 3 MidTerm Grade Details 1. Question: In the Dornbusch-Fischer-Samuelson graph above, a uniform improvement in labor productivity in all the home country's industries would shift the A schedule ____ and would lead to the export of a ____ number of goods by the home country. Your Answer: upward; greater CORRECT upward; smaller downward; greater downward; smaller Points Received: 2 of 2 Comments: 2. Question: The following Classical-type table shows the number of days of labor input required to obtain one unit of output of each of the three commodities in each of the two countries: good T good X good Y United Kingdom 4 days 5 days 3 days United States 4 days 4 days 2 days Using the table above, if the U.S. wage rate is $40 per day and the exchange rate of £1 = $1, what is the upper limit to the wage rate in the United Kingdom that is consistent with two- way trade between the countries? Your Answer: £40 per day CORRECT £32 per day £30 per day £26 per day Points Received: 2 of 2 Comments: 3. Question: The following Classical-type table shows the number of days of labor input required to obtain one unit of output of each of the three commodities in each of the two countries: good T good X good Y United Kingdom 4 days 5 days 3 days United States 4 days 4 days 2 days Based on the information in the table above, suppose that the wage rate in the United Kingdom is £30 per day, the wage rate in the United States is $40 per day, and the exchange rate is £1 = $1. In this situation, the United Kingdom will _____. Your Answer: export good T and import goods X and Y export good Y and import goods T and X export goods T and X and import good Y CORRECT export goods X and Y and import good T Points Received: 2 of 2 Comments: 4. Question: If the U.K. worker's wage is £30 per day (and the fixed exchange rate is $2 = £1), what is the upper limit to the U.S. worker's wage per day? Your Answer: $30 $40 $90 $120 CORRECT
Image of page 1

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

View Full Document Right Arrow Icon
Points Received: 2 of 2 Comments: 5. Question: Suppose that, in a Classical model with two goods, Germany can produce 50 units of steel or 30 units of textiles with 1 day of labor, whereas Switzerland can produce 45 units of steel or 45 units of textiles with 1 day of labor. If the exchange rate is fixed at 1 Swiss franc = 1 euro and if the Swiss wage rate is 10 francs per day, then, in trading equilibrium, German wages Your Answer: must be greater than 10 euros per day. must be less than 10 euros per day. must be equal to 10 euros per day. The answer cannot be determined without more information. CORRECT Points Received: 2 of 2 Comments: 6. Question: In a Ricardian-type model, if Portugal can produce twice as much wine per day as England but only 1.5 times as much cloth per day as England, then, if Portuguese wages are 30 euros per day, the upper limit to English wages per day is _____. (Assume 1 euro = £1.) Your Answer: £15 £20 CORRECT £45 £60 Points Received: 2 of 2 Comments: 7.
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern