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Week 3 MidTerm
Grade Details
1.
Question:
In the DornbuschFischerSamuelson 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 Classicaltype 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 Classicaltype 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
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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 Ricardiantype 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.
Question:
If, in a twocommodity, twocountry Classical world, Sweden can make a unit of furniture with
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This note was uploaded on 04/10/2011 for the course ECON 20011 taught by Professor Nickeyturner during the Spring '11 term at Walden University.
 Spring '11
 NickeyTurner
 International Economics

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