ECO 336 USM MIDTERM EXAM WITH
CORRECT ACTUAL QUESTIONS AND
CORRECTLY WELL DEFINED ANSWERS
LATEST 2025 - 2026 ALREADY GRADED A+
Mercantilists perceived trade as a zero sum game.
True
False - ANSWERS-True
The Stolperminus
Samuelson
Theorem predicts
A.
the income distribution effects of trade.
B.
which goods will be exported.
C.
which factors are abundant.
D.
the level of productivity in export industries. - ANSWERS-A
,Using the specific factors model, assume that strawberry production requires
the specific factor of land, tractor production requires the specific factor of
capital, and labor is variable. If the United States is capital abundant
compared to Mexico, and Mexico is land abundant compared to the United
States, then in the short run with trade, which of the following is TRUE?
A.
The owners of land in Mexico will see a smaller increase in their incomes in
percentage terms than th - ANSWERS-D
After trade opens, the short run impact on the income of the variable factor
will be
A.
a decrease.
B.
indeterminate, income effects are not possible to know.
Your answer is correct.
C.
zero.
D.
an increase. - ANSWERS-B
Using the HO model, assume that the United States is capital abundant and
Mexico is labor abundant. If soybeans are capital intensive and avocados are
labor intensive, it would be reasonable to expect the United States to
A.
specialize completely in soybean production.
,B.
increase avocado production, but still produce some soybeans.
C.
specialize completely in avocado production.
D.
increase soybean production, but still produce some avocados. - ANSWERS-D
A production possibilities curve that is bowed out represents the case of
A.
constant costs.
B.
external costs.
C.
increasing costs.
Your answer is correct.
D.
decreasing costs. - ANSWERS-C
While the world was fairly integrated at the turn of the last century, most
trade was in agricultural and raw materials, whereas today manufactured
consumer and producer goods play a much greater role in determining
exports and imports.
True
False - ANSWERS-True
Labor mobility was
, A.
less in 1900 than in 2010.
B.
unimportant to global integration until the 1960s.
C.
greater in 1900 than in 2010.
D.
never controversial. - ANSWERS-C
One of the reasons we know that international labor mobility has been
higher at other times is because
A.
labor was important in agriculture.
B.
the population was younger.
C.
the percent of our population that was foreign born was higher.
D.
wages were lower. - ANSWERS-C
Suppose Turkey has exports of 2 billion Turkish Lira, while its imports are 2
billion Turkish Lira. Calculate Turkey's "Index of Openness" (Trade-to-GDP
ratio) assuming Turkey has 10 billion Turkish Lira of output, or GDP. -
ANSWERS-Turkey's Trade-to-GDP ratio = . 4
.
(Enter your response rounded to one decimal place.)
CORRECT ACTUAL QUESTIONS AND
CORRECTLY WELL DEFINED ANSWERS
LATEST 2025 - 2026 ALREADY GRADED A+
Mercantilists perceived trade as a zero sum game.
True
False - ANSWERS-True
The Stolperminus
Samuelson
Theorem predicts
A.
the income distribution effects of trade.
B.
which goods will be exported.
C.
which factors are abundant.
D.
the level of productivity in export industries. - ANSWERS-A
,Using the specific factors model, assume that strawberry production requires
the specific factor of land, tractor production requires the specific factor of
capital, and labor is variable. If the United States is capital abundant
compared to Mexico, and Mexico is land abundant compared to the United
States, then in the short run with trade, which of the following is TRUE?
A.
The owners of land in Mexico will see a smaller increase in their incomes in
percentage terms than th - ANSWERS-D
After trade opens, the short run impact on the income of the variable factor
will be
A.
a decrease.
B.
indeterminate, income effects are not possible to know.
Your answer is correct.
C.
zero.
D.
an increase. - ANSWERS-B
Using the HO model, assume that the United States is capital abundant and
Mexico is labor abundant. If soybeans are capital intensive and avocados are
labor intensive, it would be reasonable to expect the United States to
A.
specialize completely in soybean production.
,B.
increase avocado production, but still produce some soybeans.
C.
specialize completely in avocado production.
D.
increase soybean production, but still produce some avocados. - ANSWERS-D
A production possibilities curve that is bowed out represents the case of
A.
constant costs.
B.
external costs.
C.
increasing costs.
Your answer is correct.
D.
decreasing costs. - ANSWERS-C
While the world was fairly integrated at the turn of the last century, most
trade was in agricultural and raw materials, whereas today manufactured
consumer and producer goods play a much greater role in determining
exports and imports.
True
False - ANSWERS-True
Labor mobility was
, A.
less in 1900 than in 2010.
B.
unimportant to global integration until the 1960s.
C.
greater in 1900 than in 2010.
D.
never controversial. - ANSWERS-C
One of the reasons we know that international labor mobility has been
higher at other times is because
A.
labor was important in agriculture.
B.
the population was younger.
C.
the percent of our population that was foreign born was higher.
D.
wages were lower. - ANSWERS-C
Suppose Turkey has exports of 2 billion Turkish Lira, while its imports are 2
billion Turkish Lira. Calculate Turkey's "Index of Openness" (Trade-to-GDP
ratio) assuming Turkey has 10 billion Turkish Lira of output, or GDP. -
ANSWERS-Turkey's Trade-to-GDP ratio = . 4
.
(Enter your response rounded to one decimal place.)
