Japan
Japanese Economic Development:
19392904889500Sample questions from previous midterms
1734185317500Japan’s largest import in the 1870’s was raw cotton. It’s price fell 45 percent. Japan’s largest export in the 1870s was raw silk. Its price rose 50%.
(8 points) Show using a graph why if these were Japan’s only export good and only import good, this would imply that Japan would have gained from trade. (note: the specific numbers don't matter, just showing the kind of change from autonomy to trade). Label all parts of your diagram.
70866016764000
1798320161290Cotton
2255520106680E1
4000020000E1
95250052070
214122011303000708660673100021031206350
85725041275Production Possibility Frontier
00Production Possibility Frontier
-17145002159000
3947160155575Indifference curve 1
4000020000Indifference curve 1
7086601206500024612601206502103120121920E0
4000020000E0
239268074930
3794760167640Indifference curve 0
4000020000Indifference curve 0
30251401054100070866012065000319278076200P1
4000020000P1
299466074930
4038600168910Price ratio 0
4000020000Price ratio 0
336804095885Price ratio 1
4000020000Price ratio 1
76200015303500
Silk
Notes: The key element here is what happens to the price ratio of cotton/silk; since the price of cotton falls and silk rises, the price line becomes steeper (think about the intersection of the line with the X and Y axes—as price of cotton goes down , if spend all money on it can buy more than before; for silk can buy less. Production moves from E0 to P1; consumption moves from E0 to E1. I have left out labels for the points on the X and Y axes where the dotted lines intersect, but it would be advisable to label these too. Also note: I used this question 2 years ago, but have dropped it because I decided it involved too much drawing (i.e. takes too much time) for a midterm exam. But I might include something else that involves a diagram.
(4 points) Is your answer to a) contingent on Japanese consuming
19392904889500Sample questions from previous midterms
1734185317500Japan’s largest import in the 1870’s was raw cotton. It’s price fell 45 percent. Japan’s largest export in the 1870s was raw silk. Its price rose 50%.
(8 points) Show using a graph why if these were Japan’s only export good and only import good, this would imply that Japan would have gained from trade. (note: the specific numbers don't matter, just showing the kind of change from autonomy to trade). Label all parts of your diagram.
70866016764000
1798320161290Cotton
2255520106680E1
4000020000E1
95250052070
214122011303000708660673100021031206350
85725041275Production Possibility Frontier
00Production Possibility Frontier
-17145002159000
3947160155575Indifference curve 1
4000020000Indifference curve 1
7086601206500024612601206502103120121920E0
4000020000E0
239268074930
3794760167640Indifference curve 0
4000020000Indifference curve 0
30251401054100070866012065000319278076200P1
4000020000P1
299466074930
4038600168910Price ratio 0
4000020000Price ratio 0
336804095885Price ratio 1
4000020000Price ratio 1
76200015303500
Silk
Notes: The key element here is what happens to the price ratio of cotton/silk; since the price of cotton falls and silk rises, the price line becomes steeper (think about the intersection of the line with the X and Y axes—as price of cotton goes down , if spend all money on it can buy more than before; for silk can buy less. Production moves from E0 to P1; consumption moves from E0 to E1. I have left out labels for the points on the X and Y axes where the dotted lines intersect, but it would be advisable to label these too. Also note: I used this question 2 years ago, but have dropped it because I decided it involved too much drawing (i.e. takes too much time) for a midterm exam. But I might include something else that involves a diagram.
(4 points) Is your answer to a) contingent on Japanese consuming