Macro Economics Practice Exam

2091 Words Sep 7th, 2015 9 Pages
Question 1 (Essay Worth 15 points)

Exchange Rates | Year | U.S.
Dollar | South Korean
Won | Malaysian
Ringgits | Indonesian
Rupiahs | 2008 | 1 | 9,046 | 3.49 | 9,022 | 2009 | 1 | 9,046 | 3.78 | 9,087 | 2010 | 1 | 8,995 | 3.65 | 9,144 |

a. Given the change in the value of the dollar between 2008 and 2009, as indicated in the table above, describe the effects this will have on United States tourism in each of these countries. b. Explain what impact the change in the value of the dollar between 2008 and 2009 will have on the United States current account.

Question 2 (Essay Worth 15 points)

Suppose the United States decides to impose a tariff on all wood products coming into the nation. a. Using a supply
…show more content…
a car that was imported from Korea wheat that was exported to Somalia a factory site purchased in Ireland
$2 million in U.S. aid to rebuild schools in Afghanistan
$500 in interest earned on Swedish bonds

Question 6 (Multiple Choice Worth 2 points)
Lindsay can either wash two dogs or clean four windows in two hours. Amy can either wash two dogs or clean ten windows in two hours. Based on this information, which of the following is true?
Lindsay has an absolute advantage in washing dogs, while Amy has an absolute advantage in cleaning windows.
Lindsay has a comparative advantage in washing dogs, while Amy has a comparative advantage in cleaning windows.
Lindsay has a comparative advantage in cleaning windows, while Amy has a comparative advantage in washing dogs.
Lindsay has a comparative advantage in the production of both goods.
Amy has a comparative advantage in the production of both goods

Question 7 (Multiple Choice Worth 2 points) | Oranges | Bananas | United States | 4 acres | 5 acres | Costa Rica | 3 acres | 2 acres |
The table above lists the number of acres it takes to produce one cargo container of oranges and one cargo container of bananas in the United States and Costa Rica. Which of the following is true?
I. The U.S. has the comparative advantage in producing oranges.
II. Costa Rica has the comparative advantage in producing oranges.
III. The U.S. has the comparative advantage in producing bananas.
IV.…

More about Macro Economics Practice Exam