E452exs3S10

E452exs3S10 - Name FINAL EXAM Economics 452 International...

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N a m e FINAL EXAM Economics 452 International Trade Theory and Policy Spring 2010 1 INTERPTEMPORAL TRADE 1-4 With intertemporal trade, the United States and China have identical ratios of current to future consumption, while the ratio of current to future production is higher in China than in the United States. 1. Prior to intertemporal trade, the interest rate in the United States must be _______ than in China. a) higher b) higher or the same c) the same d) lower or the same e) lower 2. Intertemporal trade causes the interest rate in the United States to a) rise b) rise or remain unchanged c) remain unchanged d) fall or remain unchanged e) fall 3. Intertemporal trade causes the interest rate in China to a) rise b) rise or remain unchanged c) remain unchanged d) fall or remain unchanged e) fall 4. Who gains due to intertemporal trade? a) China b) the United States c) both countries d)
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2 MIGRATION 5-8 The United States and Mexico produce oats using labor and land and share the same technology. Initially, the U.S. ratio of labor to land is lower in than in Mexico. Consider the effects of allowing labor to move freely between the two countries, with no barriers to migration. 5. Before migration occurs, how must the real wage in the United States compare to that in Mexico? a) higher in the United States b) higher in the United States or the same as in Mexico c) the same as in Mexico d) lower in the United States or the same as in Mexico e) lower in the United States 6. After migration occurs, how will the real wage in the United States compare to that in Mexico? a) higher in the United States b) higher in the United States or the same as in Mexico c) the same as in Mexico d) lower in the United States or the same as in Mexico e) lower in the United States 7 How does allowing immigration affect the marginal product of labor in the United States? a) rises b) rises or remains unchanged c) remains unchanged d) falls or remains unchanged e) falls 8 How does allowing immigration affect the ratio of labor to land in the United States? a) rises b) rises or remains unchanged c) remains unchanged d) falls or remains unchanged e) falls
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3 TRADE POLICIES 9-12 The United States removes a binding quota on imports of textiles. 9.
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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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E452exs3S10 - Name FINAL EXAM Economics 452 International...

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