E452exs1S10

E452exs1S10 - 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 Spring 2010 -1- WORLD TRADE 1. Which of the following is NOT one of the five largest trading partners of the United States? a. China b. Mexico c. Germany d. Italy e. Japan 2. What is true for the United States with each of its five largest trading partners? a. Trade balance is positive so we have a trade surplus b. Trade balance negative so we have a trade deficit c. Value of our imports exceeds the value of our exports d. Value of our exports exceeds the value of our imports e. b and c 3. Which of the following countries is NOT in the top 10 countries of origin for Texas imports? a. China b. Mexico c. Canada d. Venezuela e. Saudi Arabia 4. Which state exports the most (biggest dollar amount)? a. Alaska b. Texas c. California d. Florida e. New York
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-2- 5. Germany has a larger share of EU gross domestic product (GDP) than Spain so it should have ________ share of EU trade with the United States than Spain. a. A larger b. A smaller c. An equal d. An equal or larger e. An equal or smaller 6. The United States trades more with countries that a. Have minimal cultural ties b. Are smaller in terms of their GDP c. Have few ocean harbors and lots of mountain ranges d. Are closer in distance e. b and d 7. To illustrate that borders matter, we saw that British Columbia trades far more as a share of GDP with Canadian provinces than with U.S. states that are a. Further away b. Similar distance away c. Closer d. Richer e. Bigger 8. Trade as a percentage of GDP for the United States in 1996 is ____ for the United Kingdom in 1910. a. Much larger than b. Slightly larger than c. Smaller than d. Same as e. None of the above – such a comparison is not meaningful
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-3- RICARDIAN MODEL 9-12. Ice skates and trash cans are produced with labor. Suppose the free trade relative price of ice skates to trash cans is less than the opportunity cost of ice skates in terms of trash cans in Canada. 9. The relative price of ice skates to trash cans in the absence of trade must be ________ in Canada compared to China. a. Higher b. Lower c. The same d. Higher or the same e. Lower or the same 10. Canada has comparative advantage in a. Only trash cans b. Only ice skates c. Both trash cans and ice skates d. Neither trash cans nor ice skates e. Cannot tell from the information provided 11. Canada has absolute advantage in a. Only trash cans b. Only ice skates c. Both trash cans and ice skates d. Neither trash cans nor ice skates e. Cannot tell from the information provided 12. In Canada, which sector pays the highest wage under free trade? Wage making a. Ice skates will be higher than for trash cans b. Trash cans will be higher than for ice skates c. Ice skates will be same as for trash cans d. Ice skates will be equal or higher than for trash cans e. Trash cans will be equal or higher than for ice skates
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This note was uploaded on 02/13/2012 for the course ECON 452 taught by Professor Vacaflores during the Spring '06 term at Texas A&M.

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E452exs1S10 - Name FIRST MIDTERM EXAM Economics 452...

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