POS 486 FINAL EXAM LATEST 2021 QUESTIONS AND ANSWERS GRADED A (VERIFIED).

POS 486 FINAL EXAM • Question 1 Free trade alters supply and demand by Selected Answer: 4. providing gains in the form of increased revenue to domestic producers Correct Answer: 2. lowering the price, thereby increasing the quantity demanded Response Feedback: See Chapter 3, "The Economic Case for Free Trade" and Lecture 3 • Question 2 In a liberalized country with an abundance of labor and land but little capital, we would expect Selected Answer: 2. agricultural interests to be export-oriented Correct Answer: 2. agricultural interests to be export-oriented Response Feedback: See Oatley Chapter 4 & Lecture 4 on abundant factors & trade preferences & the midterm exam. • Question 3 When U.S. automakers (the Big 3) sought a bailout from the federal government in 2008, the sectoral model would predict Selected Answer: 2. that the automakers and autoworkers would both support the bailout Correct Answer: 2. that the automakers and autoworkers would both support the bailout Response Feedback: Refer to the differences between the sector and factor models, Chapter 4 • Question 4 In a factor-based model of trade, if a developing country begins producing more shoes and fewer aviation systems, who benefits? Selected Answer: 1. labor Correct Answer: 1. labor Response Feedback: See Oatley Chapter 4 on Trade Policy Preferences, and Lecture 4, and the midterm. • Question 5 If Toyota purchased its parts manufacturers to internalize inputs, this would be an example of which the following? Selected Answer: 2. vertical integration Correct Answer: 2. vertical integration Response Feedback: Refer to Oatley's Chapter 8, pp. 168-169 on market imperfections • Question 6 The number of MNCs Selected Answer: 3. has grown as a result of market reforms implemented globally since the 1980s Correct Answer: 3. has grown as a result of market reforms implemented globally since the 1980s Response Feedback: See Oatley, Chapter 8 & Lecture 8