FUNDAMENTALLY, THE ANALYSIS UNDERTAKEN BY AUTOR, DORN AND HANSON (HEREAFTER, ADH) COMPARES

17 Jul FUNDAMENTALLY, THE ANALYSIS UNDERTAKEN BY AUTOR, DORN AND HANSON (HEREAFTER, ADH) COMPARES

Fundamentally, the analysis undertaken by Autor, Dorn and Hanson (hereafter, ADH) compares

diFFerent US locations that are subject to di?erent degrees of exposure to Chinese import competition
di?erent Chinese industries that di?er according to their export growth to the US
di?erent US workers who are subject to di?erent degrees of exposure to Chinese import competition
di?erent US industries that are subject to di?erent degrees of exposure to Chinese import competition

Question
Readings quiz (set 1)
Started: Sep 5 at 4:33pm

Quiz Instructions
This quiz is based on the first set of required readings (click here for the readings).

Question 1

1 pts

Fundamentally, the analysis undertaken by Autor, Dorn and Hanson (hereafter, ADH) compares

diFFerent US locations that are subject to di?erent degrees of exposure to Chinese import competition
di?erent Chinese industries that di?er according to their export growth to the US
di?erent US workers who are subject to di?erent degrees of exposure to Chinese import competition
di?erent US industries that are subject to di?erent degrees of exposure to Chinese import competition

Question 2

1 pts

According to ADH, which of the following is true?

The impacts of trade with China show that the US neither gains nor loses from trade
The impacts of trade with China highlight the distributional implications of trade
The impacts of trade with China have been long known and well understood by economists
The impacts of trade with China show that the US should impose trade restrictions

Question 3

1 pts

Since the 1980s, trade economists have studied the impact of rising imports from developing countries as an explanation
for adverse labor market outcomes of US manufacturing workers. According to ADH, which of the following was the
standard explanation prior to their paper?

Trade was the primary explanation

Trade and technological change were equally important explanations
The root causes remained a puzzle
Technological change was the primary explanation

Question 4

1 pts

According to ADH, what is the key reason behind the surge in Chinese import penetration?

US consumers deciding they want to buy lots of cheap goods from China
Reforms happening within China
Trade policy decisions taken by the US
The slumping global economy

Question 5

1 pts

In US locations that are very exposed to import penetration from China, what are the impacts on workers outside of the
manufacturing sector according to the anlaysis of ADH?

They are not impacted because they do not work in the tradable sector
They su?er lower wages
They benefit from higher wages
They benefit because their wages are una?ected but they face cheaper prices

Question 6
In the analysis of ADH, what leads a US location to be highly exposed to Chinese import penetration?

Its residents work in industries where import growth from China is high

1 pts

Its residents buy a lot of cheap goods from China
It has a lot of Chinese owned factories
It has a lot of immigrants from China

Question 7

1 pts

According to ADH, the recent surge in Chinese import penetration explains how much of the decline in US manufacturing
employment over the same time period?

75%
100%
25%
5%

Question 8

1 pts

Pierce and Schott (hereafter, PS) argue that the US saw a substantial jump in Chinese import penetration after 2000
because of

the elimination of uncertainty regarding the tari?s imposed by the US on China
US consumers deciding that they want to buy a lot of cheap goods from China
reforms within China
tari? cuts granted by the US to China upon China’s accession to the WTO

Question 9

Fundamentally, the analysis in PS is a comparison of

di?erent US industries that are exposed to di?erent degrees of rising Chinese import competition

1 pts

di?erent US workers that are exposed to di?erent degrees of rising Chinese import competition
di?erent Chinese industries who di?er in their export growth to the US
di?erent US locations that are exposed to di?erent degrees of rising Chinese import competition

Question 10

1 pts

According to PS, which of the following is true?

The impacts of trade with China show that the US should impose trade restrictions
The impacts of trade with China have been long known and well understood by economists
The impacts of trade with China show that the US neither gains nor loses from trade
The impacts of trade with China highlight the distributional implications of trade

Question 11

1 pts

Prior to 2000, what was the rule determining the set by the US on China?

The US set tari?s on China according to a schedule of tari?s that was written in the 1930s (i.e. the non-NTR
tari?s)
Each year, the US Congress decided whether to set the MFN or the non-NTR tari?s on China
The US had to set the same tari?s on China as it did on all other countries (i.e. the MFN tari?s)
Each year, the US Excecutive branch decided whether to set the MFN or the non-NTR tari?s on China

Question 12

1 pts

When PS compare an industry at the 75th percentile of the NTR gap with an industry at the 25th percentile of the NTR
gap, they estimate that, all else equal, the former will have about

8% lower employment

the same employment
8% higher employment
25% lower employment

1 pts

Question 13

In the regression model, the

‘s are

variables that can be observed
the control variables
known numbers observed in the data
unkown numbers that need to be estimated via regression analysis

Question 14

1 pts

Consider the regression model
where a workers wage depends on their
years of education and their years of experience. When can we interpret the estimate of
causally?

When the unobserved variables in u are uncorrelated with the control variables
Always
Never
Only if education and experience are the sole determinants of a workers wage

Question 15

What is the difference between an economic model and a regression model?

An economic model describes a general relationship but a regression model gives a functional form for the
relationship

1 pts

There is no di?erence
An economic model describes causal relationships but a regression model only describes correlations
An economic model describes economic phenomena but a regression model describes statistical phenomena

1 pts

Question 16

Suppose the true economic model that relates wages to education is given by
but you use the regression model
to
estimate
. Also suppose that education is negatively correlated with experience and, all else equal, more experience
generates higher wages. How would you expect your estimate of
to compare with its true value
?

gamma_1 < beta_1
There’s no way to know
gamma_1 = beta_1
gamma_1 > beta_1

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