samplemidterm - Advanced International Economics ECON 758...

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Advanced International Economics Prof. Yamin Ahmad ECON 758 Sample Midterm Exam Name___________________________________ Id # _______________________ Instructions: There are two parts to this midterm. Part A consists of multiple choice questions. Please mark the answers to the multiple choice questions on the exam paper Part A has 25 questions and is worth 60%. Part B is worth 40% and consists of short answer questions. Part A: MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) If the relative price of S in terms of T is 2 and S has a nominal price of $1, then the relative price of T is A) $2. B) 1/2 S. C) 50 cents. D) Need more information to answer. 1) 2) If a country has a straight (downward sloping) production possibilities frontier, then production is said to be subject to A) first increasing and then decreasing opportunity costs. B) constant opportunity costs. C) increasing opportunity costs. D) decreasing opportunity costs. 2) 3) A country gains from international trade if its post - trade ________ point lies outside its production possibility frontier. A) autarky B) production C) consumption D) All of the above 3) 4) An indifference curve A) is a locus of bundles of goods such that the consumer is indifferent between each of the bundles. B) is a locus of bundles of goods such that each good in every bundle yields equal satisfaction. C) is a locus of bundles of goods such that the consumer is indifferent between each good in every bundle. D) All of the above. 4) 1
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Answer the question(s) below based on the following diagram. 5) Refer to the figure above. In autarky equilibrium, the relative price is given by the slope of the production possibility frontier at point A) F. B) D.
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This note was uploaded on 04/08/2008 for the course ECON 758 taught by Professor Ahmid during the Fall '07 term at Wisc Whitewater.

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samplemidterm - Advanced International Economics ECON 758...

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