E452exs2S11

E452exs2S11 - Name SECOND MIDTERM EXAM Economics 452...

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Name SECOND MIDTERM EXAM Economics 452 International Trade Theory and Policy Spring 2011 1 HECKSCHER-OHLIN MODEL 1-4 Japan is relatively scarce in land to labor compared to the United States. Agricultural production relatively intensively uses land to labor compared to manufactures. Japan is assumed to have the same technology and relative demand as the United States. 1. Under free trade, Japan produces less _____ than the United States. a) agricultural output b) manufactures c) agricultural output relative to manufactures d) manufactures relative to agricultural output e) cannot tell from the information provided 2. Under free trade, Japan imports a) agricultural output b) manufactures c) both agricultural output and manufactures d) neither agricultural output nor manufactures e) cannot tell from the information provided 3. If loses land, Japan would produce _____ than before. a) less agricultural output and less manufactures b) less agricultural output and the same amount of manufactures c) less agricultural output and more manufactures d) more agricultural output and less manufactures e) more agricultural output and more manufactures 4. If loses labor, Japan would produce _____ than before. a) less agricultural output and less manufactures b) less agricultural output and the same amount of manufactures c) less agricultural output and more manufactures d) more agricultural output and less manufactures e) more agricultural output and more manufactures
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2 5-8 The United States is relatively scarce in less skilled to more skilled labor compared to China. Clothing production relatively intensively uses less skilled labor to more skilled labor compared to electronics. Both countries produce both clothing and electronics and have the same technology and relative demand. 5. As China moves from autarky to free trade, the wage paid to more skilled workers: a) rises by more than the price of goods b) rises by less than the price of goods c) stays the same d) falls by less than the price of goods e) falls by more than the price of goods 6. Who in China is hurt by trade? a) less skilled workers b) more skilled workers c) both less skilled and more skilled workers d) no one e) cannot tell from the information provided 7. As the United States moves from autarky to free trade, the wage paid to less skilled workers: a) rises by more than the price of goods b) rises by less than the price of goods c) stays the same d) falls by less than the price of goods e) falls by more than the price of goods 8. Who in the United States, who is hurt by trade? a) less skilled workers b) more skilled workers c) both less skilled and more skilled workers d) no one e) cannot tell from the information provided
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3 STANDARD TRADE MODEL 9-12 Free trade prevails between Japan and the ROW. Suppose Japan experiences negative economic growth (a contraction), while the ROW has no growth. Suppose the contraction causes Japan to
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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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E452exs2S11 - Name SECOND MIDTERM EXAM Economics 452...

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