E452exs1F11

E452exs1F11 - Name FIRST MIDTERM EXAM Economics 452...

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N a m e F IRST M IDTERM E XAM Economics 452 International Trade Theory and Policy Fall 2011 -1- WORLD TRADE 1. When the value of our imports exceeds the value of our exports, a. Trade balance is positive so we have a trade surplus b. Trade balance is negative so we have a trade deficit c. Trade balance is positive so we have a trade deficit d. Trade balance is negative so we have a trade surplus e. b and c 2. Total value of US imports from and exports to China (trade volume) has been around ______ in 2008-2010. a. $35-45 million b. $350-450 million c. $35-45 billion d. $350-450 billion e. $35-45 trillion 3. Since 2002, which state has the second largest value of exports? a. Ohio b. New York c. Texas d. California e. Florida 4. U.S. exports in 2010 were _______ compared to 2009. a. 53% lower b. 18% lower c. virtually the same d. 21% higher e. 52% higher
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-2- 5. What percentage of the volume of world trade is in manufactured products such as automobiles, computers, clothing and machinery? a . 7 % b. 20% c. 55% d. 90% e. Cannot say because the percentage has varied a lot from year to year in the past decade. 6. Which aspects of the United States and Canada suggest that this border should not matter as much as most other borders in terms of discouraging trade? a. common currency b. Canadian-US Free trade agreement promoted trade c. majority of Canadians live near the US border d. two countries share a common language and heritage e. all of the above except a 7. Looking at the value of imports plus the value of exports (trade volume), U.S. trade with Canada is _____ U.S. trade with the European Union. a. less than one tenth as much as b. about half as much as c. similar in magnitude to d. about twice as much as e. more than ten times as much as 8. As a fraction of GDP, U.S. trade with Canada is _____ U.S. trade with the European Union. a. less than one tenth as much as b. about half as much as c. similar in magnitude to d. about twice as much as e. more than ten times as much as
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-3- RICARDIAN MODEL 9-12. Candy and toys are produced with labor. Suppose the relative price of candy to toys under free trade equals the relative price before trade for the United States. The United States stops producing fewer toys to produce a pound of candy than in the rest of the world. 9. Under free trade, the wage earned when making candy is _______ the wage earned when making toys in the United States. a. Higher than b. Lower than c. The same as d. Higher than or the same as e. Lower than or the same as 10. Under free trade, the wage earned when making candy is _______ the wage earned when making toys in the rest of the world. a. Higher than b. Lower than c. The same as d. Higher than or the same as e. Lower than or the same as 11. Does the rest of the world gain from trade? a. Yes for sure b. No for sure c. Possibly but only if produces just candy d. Possibly but only if produces just toys e. Possibly but only if produces both candy and toys 12. In the move from autarky to free trade, the relative price of candy to toys in the rest of the world a. Rises b. Rises or stays the same c. Stays the same d. Falls or stays the same e. Falls
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-4- 13-16 Sports equipment and pens are produced with labor.
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This note was uploaded on 02/13/2012 for the course ECON 452 taught by Professor Vacaflores during the Fall '06 term at Texas A&M.

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E452exs1F11 - Name FIRST MIDTERM EXAM Economics 452...

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