IS and Econ 13 - First Midterm Examination 5. Which of these attributes are NOT associated
KEY (correct answered starred “*”) with the rise of agriculture?
S. Skaperdas – February 1, 2012 a. less protein, more carbs
Version A b. nomadic lifestyle*
Fill in your scantron, INCLUDING YOUR c. more generalized trade
VERSION (A). Be sure to mark (blacken) the d. emergence of states
appropriate boxes. (You will not get a grade e. none of the above
6. In terms of Purchasing Power Parity, the
There are 35 questions in the exam. Questions United States' GDP/capita is around the
1-30 are worth 1 point each. Questions 31-35 following percentage of China's GDP/capita.
are worth 2 points each. a. 50%
1. The Democratic Republic of the Congo c. 200%
(former Zaire) d. 650%*
a. has a large amount of natural resources but e. 10,000%
is one of the poorest countries on earth.*
b. has few natural resources and is one of the 7. The building of railroads during the
poorest countries on earth. nineteenth century
c. has few natural resources and is one of the a. was a direct consequence of the
richest countries in sub-Saharan Africa. invention of the internal combustion
d. has a large amount of natural resources engine.
and is one of the richest countries in sub-Saharan b. required large amounts of capital
e. is smaller but richer than South Africa. c. was the catalyst of computer and
2. Corporations d. was the catalyst of the second part of
a. were the main form of firm organization the industrial revolution and was
since the beginning of the industrial revolution. characterized by the emergence and
b. became the dominant form of firm development of the modern corporation
organization in the US in the late 19th century.* e. b and d.*
c. have always been the most efficient form
of firm organization. 8. The Industrial Revolution began in
d. arose in the late Middle ages and have a. Great Britain.*
been dominant since then. b. The United States.
e. a and c. c. France.
3. A factor of production e. Scandinavia
a. is a resource used to produce goods and
services. 9. Since the late nineteenth century the
b. may include final consumption goods. economies of rich countries have been
c. may include labor and land. characterized by the following EXCEPT
d. a and c.* a. continued specialization in production.
e. All of the above. b. reductions in the division of labor.*
c. the growth of governments.
4. According to the 2009 data on Gross d. the hierarchical organization of firms.
National Income (“GNI”) we examined e. the spread of joint-stock companies.
a. Bangladesh has a higher GNI per capita
than China. 10. Coinage was invented
b. Nigeria has a higher GNI per capita a. in Western Turkey 27 centuries ago.*
than India and China. b. in Ancient Greece 27 centuries ago.
c. India and China have a higher GNI per c. Egypt 8000 years ago.
capita than Mexico. d. in Iraq 8000 years ago.
d. China had a higher GNI per capita than e. In China 8000 years ago.
e. a and b. Sweden and Finland produce only two goods, 15. The following statement is true:
herring and cell phones. This table shows the a. Sweden has comparative advantage
maximum amount that each nation can produce (“CA”) in herring production.*
of the two goods b. Sweden has CA in cell phone
Sweden Finland c. Finland has CA in both herring and cell
Herrings 100,000 30,000 phone production and therefore does not
Cell phones 20,000 10,000 need to import anything.
d. Finland has CA in herring production.
e. Comparative advantage cannot be
Assume the production possibilities frontier is
linear and Sweden and Finland are the only two determined from the information
countries that can trade. Use this information in provided.
the questions bellow.
16. The following statement is true:
11. The opportunity cost of one herring in a. Finland has comparative advantage
(“CA”) in herring production.
Sweden is b. Sweden has CA in cell phone
a. 100,000 herrings
b. 20,000 cell phones. production.
c. 5 cell phones. c. Sweden has CA in both herring and cell
d. 1/5 of a cell phone.* phone production and therefore does not
e. 5 herrings need to import anything.
d. Finland has CA in cell phone
12. The opportunity cost of one herring in e. Comparative advantage cannot be
a. 10,000 cell phones. determined from the information
b. 3 cell phones. provided.
c. 1/3 of a cell phone*
d. 1/5 of a cell phone. Now suppose that cell phones can be used for
electronic warfare and for each country to defend
e. 10 cell phones. itself against the other (either under autarky or
13. The opportunity cost of one cell phone in under trade), it needs to produce 5,000 cell
Finland is phones and solely dedicate them to “defense.”
a. 3 herrings.* Questions 17 -19 apply to this new situation but
b. 5 herrings. with the same production possibilities as in the
c. 30,000 herrings previous table (but now with the necessary
production of 5,000 cell phones devoted solely to
d. 1/3 of a herring. “defense”).
e. 1/5 of a cell phone.
14. The following statement is true: 17. The maximum amount of herrings that
a. Sweden has an absolute advantage Sweden can produce for consumption or trade is
(“AA”) in the production of cell phones. a. 0
b. Finland has an AA in cell phone b. 25,000
production. d. 75,000*
c. Sweden has an AA in herring
production. e. 100,000
d. b and c.
e. Absolute advantage cannot be 18. The maximum amount of herrings that
determined from the information Finland can produce for consumption or trade is
provided.* a. 10,000