Week 3 MidTerm - Week 3 MidTerm Grade Details1.Question In the Dornbusch-Fischer-Samuelson graph above a uniform improvement in labor productivity

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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
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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. Question: If, in a two-commodity, two-country 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 2001-1 taught by Professor Nickeyturner during the Spring '11 term at Walden University.

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Week 3 MidTerm - Week 3 MidTerm Grade Details1.Question In the Dornbusch-Fischer-Samuelson graph above a uniform improvement in labor productivity

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