The CGE Model Database: The SAM

1. The CGE Model Database: The SAM Self-Assessment

2. How to Do the Self-Assessment • View the presentation as a slide show. • Move your cursor over the bottom left corner of the page to display navigation buttons. • Follow the instructions to select or write your answers. • Click on the right-arrow in the lower left corner to view the correct answer. • After completing a question and viewing the answer, click on the right-arrow to move to the next question. • Click on the left-arrow in the lower left corner to return to the previous question.

3. True or False Questionsclick on your answer

4. The commodity “steel” includes a country’s domestic steel production plus steel imports.

5. An activity’s column account in the SAM describes all of the inputs used in its production process. The column sum is therefore the total cost of production and the gross value of the output.

6. GDP from the income side reports total spending by 4 categories of aggregate demand: household consumers, government, investors and the rest-of-world.

7. Factor cost shares are a measure of the importance of each factor in an industry’s production process.

8. Multiple Choice Questionsclick on your answer

9. The SAM format for a CGE model database illustrates the circular flow of income and expenditure. describes expenditures in its columns and income flows in its rows. displays microeconomic data about an economy. All of the above

10. The import share of consumption is relevant only for household consumers. excludes the cost of import tariffs. is calculated as imports/production. is a measure of the linkage between consumers and world markets.

11. Trade margins include insurance and freight charges plus export taxes. are excluded from calculations of the share of imports in consumption. are excluded from calculations of the balance of trade in goods and services. include insurance and freight charges incurred when shipping goods from the exporting country to the importing country.

12. The column sum of an activity account in the SAM All of the above. describes the value added of a domestic industry. describes the GDP of a domestic industry. describes the gross value of output of a domestic industry .

13. The Regional Household account in the RunGTAP model is a macroeconomic account that describes the sources of national income from factor earnings and taxes. is a macroeconomic account that is equivalent to GDP from the income and expenditure sides. is a macroeconomic account that describes aggregate spending by households and government, and national savings. Only A and B.

14. The Private Household’s account reports households’ industries of employment. usually excludes sales taxes. describes household demand for goods along its row account. describes household demand for goods in its column account.

15. Which of the four statements is incorrect: The structure of SAM’s differ across models due to differences in dimensions, placement of taxes, and the structure and theory of the CGE models. Each cell in the SAM can be interpreted simultaneously as an expenditure from one account and income to another. A SAM is square because each agent has both a row (income) account and a column (expenditure) account. The SAM database describes the underlying disequilibrium in an economy, before the analysis begins.

16. Congratulations! You have completed the CGE Cloud ClassroomSelf-Assessment on DATABASE OF A CGE MODEL _______ Dated

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