In his test of the HO model for the United States, Leontief found that :
a. the United States was importing labor intensive commodities.
b. the U.S. capital/labor ratio for imported goods was larger than that for the exported goods.
c. the U.S. capital/labor ratio for imported goods was smaller than that for
d. the exported goods there was a trade imbalance in the United States.
Answer: b. the U.S. capital/labor ratio for imported goods was larger than that for the exported goods.
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Since 1998, the U.S. federal government has continuously run a budget surplus
Indicate whether the statement is true or false
The MPC is 0.90 and there are no income taxes or imports. If government expenditures on goods and services increases by $2.0 billion, after the multiplier effect works out, aggregate expenditure increases by
A) $2.22 billion. B) $2.0 billion. C) $10 billion. D) $20 billion. E) $1.8 billion.
Which of the following is a Nobel Prize winning economist who argued that theories should be tested based on the validity of their predictions?
A) Milton Friedman. B) Ben Bernanke. C) Alan Greenspan. D) Larry Summers.
If K-12 education is determined to be an inframarginal positive externality, this means that K-12 education is being underproduced
a. True b. False