Practice_Midterm

Practice_Midterm - ECN 162 International Economic Relations...

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ECN 162 International Economic Relations University of California - Davis Ina Simonovska Fall 2010 Practice Midterm Tuesday, October 5 Part I: Multiple Choice Questions Choose the best answer. Explanation is not required. 1. Which of the following is true? (a) Much of the trade of the European Union (EU) countries is with EU countries. (b) Industrialized countries tend to trade relatively little and largely with developing countries. (c) Developing countries in Africa and South America tend to trade the most and largely with themselves. (d) All of the above are true. 2. If the autarky price of S (in terms of T) were lower in country A than in country B, (a) A has a comparative advantage in S. (b) B has a comparative disadvantage in T. (c) A has a comparative advantage in T. (d) All of the above. 3. The Ricardian model predicts that (a) countries will completely specialize in the production of export goods. (b) considerable trade will occur between countries with different levels of technology. (c) small countries could obtain all of the gains from trade when trading with large countries. (d) All of the above. 4. According to the Ricardian model of international trade (a) only countries with low wages will export. (b) only countries with high wages will import. (c) countries with high wages will have higher relative prices of all goods.
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This note was uploaded on 09/25/2011 for the course ECN 162 taught by Professor Ina during the Fall '10 term at UC Davis.

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Practice_Midterm - ECN 162 International Economic Relations...

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