2 fbe 462 sample midterm 1 5 ch33 when adam smith

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Unformatted text preview: ple Midterm #1 5. Ch3.3 When Adam Smith presented his theory of absolute advantage, he thought that all value was measured in terms of the amount of _______ used in the production of the good. (a) land (b) capital (c) labor (d) money 6. Ch4.1 Constant cost production possibility curves lead to _______ specialization. Increasing cost production possibility curves lead to _______ specialization. (a) no; partial (b) complete; no (c) complete; partial (d) partial; complete 7. Ch4.12 Refer to Figure 4.2. Before trade opens, the Rest of the World produces _______ yards of cloth and _______ units of wheat; while consuming _______ yards of cloth and _______ units of wheat. (a) 10; 8; 8; 10 (b) 4; 16; 8; 10 (c) 8; 10; 8; 10 (d) 8; 10; 12; 8 8. Ch4.22 China has 20% of the world’s population but only 10% of the world’s farmable land. The Heckscher-Ohlin theory of trade would predict which of the following for China following the opening of trade? (a) China will export land-intensive goods like wheat and import labor-intensive goods like clothing. (b) China wil...
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This note was uploaded on 02/15/2011 for the course FBE 462 at USC.

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