November 27, 2012
Background: This essay is part of the Economics Department’s assessment of how well we are educating our students, as well as part of our assessment of how well writing is taught in the Williams school. Your score on this essay will be part of a participation score for the capstone, but more importantly it is an opportunity to make our department better. Thank you for working and writing carefully on this essay.
Time limit: 30 minutes
Approximate Length: 1-2 pages, double-spaced, 200-400 words.
China is currently the 2nd largest source of imports for the United States, behind only Canada. Trade between the two countries (exports plus imports) in dollar terms has increased from $2 billion in 1979 to approximately $459 billion in 2010. Based on economic theory, does the increase in trade with China increase, decrease, or have an ambiguous effect on the economic wellbeing of the United States?
This is a closed note / closed book assignment.
Please submit a pdf file via email by December 4, 2012.