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Name: _______________________ Economics 3563: International Trade Spring 2017 Data/Excel Assignment (70 Points Total) Due: TBD Answer Sheet Spreadsheet Answers (points in parentheses) (Do not write anything in the spaces for questions 1 – 7) 1) Ente r the proper quantities ( 2)______ 2) Use formula to calculate relative price of food (3)______ 3) Use formula to calculate relative price of cars (3)_______ 4) Writ e out the zero profit conditions as a system of four equations in four unknowns (10 )___ 5) Write out the proper matrix of coefficients ( 8)______ 6) Use the MINVERSE function to calculate the inverse of the coefficient matrix (8)_____ 7) Use the MMULT function to calculate the real factor payments (8)_____ 8) Use of formula to calculate the income gap for each country (4) Written Answers (points in parenthese s) Based on the numbers generated in your spreadsheet answer the following questions 8) Does this exercise confirm the Stolper -Samuelson theorem? (6) YES / NO Explain: 9) Does this exercise confirm the Factor Price Equalization theorem?(6 ) YES / NO Explain: 10) How does income inequality change in Home?( 6) INCREASE / DECREASE 11) How does income inequality change in Foreign?( 6) INCREASE / DECREASE Note for questions 8 – 11 your Excel spreadsheet should b ack up your answers. If not, they will be marked incorrect.