讲解 MGEC82 Midterm讲解留学生Matlab编程

MGEC82 Midterm

Due: Tuesday, October 24, 2023 5:05 pm (Eastern Daylight Time)

Assignment description

This exam is designed to be 1 hour and 50 minutes in length. You have extra 15 minutes, totalling 125 minutes to complete the exam and upload the answers to Crowdmark. You are expected to submit your answers as you complete them along the way. Do not leave that portion of the exam until the end. You will be able to change your submitted answers throughout the exam. All answers must be handwritten.

Please note that although it may be possible on Crowdmark to submit after the deadline of 5:05 pm. Crowdmark time-stamps the submissions, and to be fair to everyone writing the exam, we will not mark anything submitted at 5:06 pm or later.

The University of Toronto's Code of Behaviour on Academic Matters applies to all University of Toronto Scarborough students. The Code prohibits all forms of academic dishonesty including, but not limited to, cheating, plagiarism, and the use of unauthorized aids. Students violating the Code may be subject to penalties up to and including suspension or expulsion from the University.

In submitting this exam in Crowdmark under my name, I confirm that my conduct during this exam adheres to the Code of Behaviour on Academic Matters. I confirm that I did NOT act in such a way that would constitute cheating, misrepresentation, or unfairness, including but not limited to, using unauthorized aids and assistance, collaborating with another person, impersonating another person, and committing plagiarism.

You are allowed to use their course notes, the course textbook, as well as a calculator for this exam. You need to upload to Crowdmark a separate picture for each question.

For full credit, you must show your work, or explain your answer fully in all cases. Answer all questions with complete sentences/paragraphs, in addition to diagrams and/or equations as appropriate. Pay attention to the proportion of marks assigned to each question, and allocate your time accordingly.

In case of technical issues, below is the IT help desk contact information that should be contacted immediately: Students help desk: [email protected] or (416) - 287 - 4357 (HELP)

Submit your assignment

After you have completed the assignment, please save, scan, or take photos of your work and upload your files to the questions below. Crowdmark accepts PDF, JPG, and PNG file formats.

Q1 (4 points)

What are the two factors that affect trade in the gravity model? Explain whether each factor increases or decreases trade. (4 marks)

Q2 (3 points)

Describe some limitations of the Ricardian model of trade (3 marks).

(Answer in complete sentences/paragraphs, with carefully-labelled diagrams as appropriate)

Q3 (2 points)

State whether the following statement is true, false, or uncertain in a model with two goods and two mobile factors, labour and capital. In evaluating each of the following statements, assume that the two countries have identical tastes and identical technology. Also assume that the two countries are engaged in trade. Explain your answer.

According to the Heckscher-Ohlin model, if two countries participating in international trade have identical technologies and produce the same two goods, factor prices in the two countries will be equalized.

(Answer in complete sentences/paragraphs, with carefully-labelled diagrams as appropriate).

Q4(a) (1 point)

For this question, you need not draw any diagrams, or even add curves to the diagrams presented. Just answer the questions clearly.

a) Albania refused to engage in international trade for ideological reasons. To maximize its economic welfare it would choose to produce at which point in the diagram above? Suppose the PB/PA at point a is equal to 1.

(Answer in complete sentences/paragraphs, with carefully-labelled diagrams as appropriate)

Q4(b) (2 points)

For this question, you need not draw any diagrams, or even add curves to the diagrams presented. Just answer the questions clearly.

b) Now that the Cold War is over, Albania is interested in obtaining economic welfare gains from trade. The relevant international relative price is PB/PA = 2. Albania would therefore choose to produce at which point (a, b, or c)? Which good would Albania export?

(Answer in complete sentences/paragraphs, with carefully-labelled diagrams as appropriate)

Q4(c) (3 points)

For this question, you need not draw any diagrams, or even add curves to the diagrams presented. Just answer the questions clearly.

c) Now, suppose that the relative price of A is actually not higher than Albania's autarkic level of 1, but quite the opposite (e.g. PB/PA = 0.5). Would Albania still be able to gain from trade? If so, where would be its production point? Which good would Albania export?

(Answer in complete sentences/paragraphs, with carefully-labelled diagrams as appropriate)

Q4(d) (5 points)

For this question, you need not draw any diagrams, or even add curves to the diagrams presented. Just answer the questions clearly.

d) Suppose, as a result of various dynamic factors associated with exposure to international competition, Albania's economy grew, and is now represented by the rightmost production possibility frontier in the Figure above. If its point of production with trade was point b, would you consider this growth to be export-biased or import biased? If Albania were a large country with respect to the world trade of A and B, would this growth affect Albania's terms of trade? Its real income (or welfare)? What if Albania were a small country?

(Answer in complete sentences/paragraphs, with carefully-labelled diagrams as appropriate)

Q5(b) (13 points)

Consider the same model from 5a, copied here: [There are two countries, Home and Foreign, and two goods, wheat and cars (put cars on the horizontal axis). There is a single factor of production, labour. The unit labour requirements for Home in wheat and cars are 2 and 4 respectively and for Foreign, they are 6 and 5. Home has 1800 units of labour, while Foreign has 1200 units of labour.]

b) Draw and carefully label both of the production possibility frontiers for these countries. Place cars on the horizontal axis. In the absence of trade and assuming that both goods are produced in each country, then what are the prices in each country? What are the production and consumption points?