Midterm1-462_SAMPLE

2 fbe 462 sample midterm 1 5 ch33 when adam smith

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

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...
View Full Document

This note was uploaded on 02/15/2011 for the course FBE 462 at USC.

Ask a homework question - tutors are online