The CGE Model Database: The

SAMSelf-Assessment

04/19/2023 1

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True or False Questions

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TRUE or FALSE?TRUE or FALSE?

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

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TRUE or FALSE?TRUE or FALSE?

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.

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TRUE or FALSE?TRUE or FALSE?

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

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TRUE or FALSE?TRUE or FALSE?

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

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Multiple Choice Questions

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A.

B.

C.

D.

The SAM format for a CGE model database

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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

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A.

B.

C.

D.

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.

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A.

B.

C.

D.

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.

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A.

B.

C.

D.

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 .

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A.

B.

C.

D.

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.

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A.

B.

C.

D.

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.

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A.

B.

C.

D.

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.

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DATABASE OF A CGE MODEL

04/19/2023

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