JUN21.docx

Professor Nguyen
Daniel Martinez Chacon
June 21, 2021
ECO 4303

Take-home exam 1

Question #7 (Chapter 6)
a) In what way does monopolistic competition resemble monopoly?
b) How is it different?
c) Why is the difference between monopolistic competition and monopoly important for consumer welfare in our intra-industry trade model?

Question #8 (Chapter 6) Explain how increased intellectual property (IP) pirating or production and sale of counterfeit American goods without paying royalties by foreign producers might affect the product cycle and revenue in the United States.
Give an example of how an American product is affected and explain how a theft of intellectual property is detrimental to a US firm.

Question #9 (Chapter 7)
The data in Table 7.2 indicate that the United States has the smallest increase in output per worker, no improvements in efficiency, and a small improvement in technology in relation to other developed countries in the table. This seems to contradict the information in Table 6.5. How can this seeming contradiction be resolved?
Explain why the US became more competitive after the 1990’s.
Also, please list a latest competitiveness ranking for about 7 to 10 most productive economies in the world -in a ranking beginning with the most competitive one as evidence of the US competitive position in world’s rankings.

Question #10 (Chapter 7)

a) Refer to the above graph. What is the relationship between average yearly changes in merchandise export and average yearly change in per-capita income.
b) List at least 3 major economic reasons that trade can cause economic growth.

References