436sample_midterm2 - Economics 436 Fall 2011 Last Years...

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Economics 436 Fall 2011 Last Year s Midterm Exam II I. Multiple Choice 1. Which of the following is NOT a contributing factor in external economies of scale? a. Specialized suppliers are more likely to be kept in business when the industry grows b. Workers with specialized skills are drawn to a geographical cluster of firms in the same industry c. Large start-up cost for a firm d. Knowledge spillover between firms 2. A country produces 2 goods, X and Y. Its production possibility frontier is concave. If the relative price of good X increases, a. The changes in the country’s output of the two goods will depend on the country’s preferences b. The country will produce more X and less Y c. The country will produce more Y and less X d. The country will produce more X and more Y 3. Trade without serious income distribution effects is most likely to happen a. In agricultural trade between rich countries b. In sophisticated manufactures trade between rich countries c. In simple manufactures trade between developing countries d. In sophisticated manufactures trade between rich and poor countries 4. Country A exports petroleum and imports manufacture goods. If Country A experiences growth biased toward petroleum, then a. A’s terms of trade will worsen, and the rest of the world’s terms of trade will improve. b.
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This note was uploaded on 02/02/2012 for the course ECON 436 taught by Professor Mingmeijones during the Spring '11 term at Binghamton University.

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436sample_midterm2 - Economics 436 Fall 2011 Last Years...

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