FIN 4510 Screenshot Questions - FINAL EXAM

EX1 - 41) In lecture, we said that the assumption of _______ was the best explanation of __________.

Absolute advantage: wages

EX3 - 27) Refer to Figure 5 for the Home country. Which of the following statements is most correct?

Both a and b

EX2- 20) Image C and Image D are examples of production possibility frontiers we used to demonstrate different trade theories. From these images, we eventually derived the curves for the international markets. Choose the best answer below/

Image C was used to build export supply curves and import demand curves that appear "smooth and continuous."

EX3 - 36) Consider the hypotheticals we did for the He theory in immigration. A higher L-K ratio (from some initial level)

Implies workers become relatively less productive

EX2 - 47) Consider diagram 9 from the He theory. We referred to the vertical line in the x-y plane as

None of the above

EX2- 28) Consider Diagram 7, which shows the autarky positions of Home and Foreign for the He model. In class, which of the following did we do regarding the indifference curves?

None of the above work

EX2 - 48) We described the economy-wide relative demand (EWRD) curve as

Shifting towards the sector of the exported good after trade opened for a country.

EX2- 31) The S-F model says that the impact of trade for capital-owners "depends on where they spend the majority of their incomes", while the Ricardian lecturers says that capital owners will experience "gains from trade."

TRUE

EX2- 15) When comparing the Ricardian theory to the He model, which of the following statements is incorrect?

The Ricardian theory said there are "gains from trade" to be realized while the He theory said that labor loses in the short run but gained in the long run.

EX2- 13) Consider the tangent line to point A in Diagram 5. Which statement is most true?

The relative price of agriculture equals the inverse of the slope of the tangent line.

EX3 - 43) Consider Figure X. Based on our discussions in class, which of the following statements is most true?

This diagram is likely used by the Federal Trade Commission to justify a lot of programs

EX1 -45) One of the conclusions we reached at the end of the Ricardian theory regarding wages across countries was

a country paying lower wages can potentially improve things by encouraging technological advance to increase productivity.

EX3 - 12)Consider figure 4. If P' is some higher price resulting from a quota policy, then which statement is incorrect?

area "c" will be equivalent to tariff revenues under a tariff policy

EX3 - 37) Consider the hypotheticals we did for the He theory in immigration. A higher L-K ratio (from some initial level). Which of the following is most correct regarding the outcome for capital-owners and workers if this hypothetical took place?

capital-owners see their purchasing power rise, workers see their purchasing power fall

EX3 - 22) One of our main points when examining the impact of immigration on wages in the long-run was that

e. All of the above work (not including d)