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319-midterm-fall-2014-ans319-midterm-fall-2014-ans.docx

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319-midterm-fall-2014-ans319-midterm-fall-2014-ans

Concordia University Department of EconomicsEconomics 319 Fall 2014MIDTERM EXAMINATION AND ANSWERSName: _____________________________C. Lau Student ID: _________________________ Oct 23rd 2014Maximum Mark: 100 + 5 bonus marksTime Limit: 90 minutesPart I: Multiple Choice Questions (15*2 marks = 30 marks)Which of the following region has experienced a substantial increase in its share of world trade between 1948 and 2010?a. North Americab.Africac. Asiad. South and Central AmericaWhich of the following is FALSE about Canada?a. Exports account for about 5% of our GDP.b. We export and import similar products.c. Most of our imports come from the US.d. We are more open to trade than the US as measured by openness index.Which of the following countries has the highest openness index in 2006 or 2010?a. The US. b. Ireland. c. Japan.d. Singapore.In 2009-2010, Canada has been running a trade ____ with the world. This is mainly due to ____.a. Surplus; strong economic growth in China and Indiab. Surplus; strong growth in South Africa and Malawic. Deficit; recession in the USd. Deficit; recession in AsiaWith the economic recession in 2009-2010, the openness indices of most countries have _________ relative to 2006. This is because during an economic downturn, countries tend to _______ imports and _________ exports.a. Increased; decrease; increaseb. Decreased; decrease; decreasec. Stayed relatively constant; decrease; increased. Stayed relatively constant; increase; decreaseThe income gap between the top 10 richest countries and bottom 10 poorest countries in the world has been ____ over the century. In the 2009-2010 recession, the income gap has __. According to studies, the economic freedom index seems to be ___ correlated to income growth.a. Increasing; decreased; positivelyb. Increasing; increased; positivelyc. Decreasing; decreased; negativelyd. Decreasing; increased; negativelyIf the US wants to shrink its trade deficits with China, the US would like to see the US dollar ____