The finding that U.S. exports tend to come from labor-intensive industries, while U.S. imports are produced using relatively capital intensive techniques is known as
A) the Leontief paradox.
B) the balance of trade enigma.
C) the Heckscher-Ohlin paradox.
D) the Krugman finding.
A
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Refer to Table 8-15. Consider the following data on nominal GDP and real GDP (values are in billions of dollars): The GDP deflator for 2015 equals
A) 94.1. B) 105.1. C) 106.2. D) 108.5.
Macland can produce 210 sweaters or 30 airplanes. Microland can produce 150 sweaters or 10 airplanes. Since Macland can produce more than Microland,
a. Macland will benefit from trading, but Microland will not as it does not have an absolute advantage. b. neither country will benefit from trade because Macland has an absolute advantage in both goods. c. both Macland and Macroland will benefit as the opportunity costs are different. d. Microland will benefit, but Macroland will not because it has an absolute advantage in both goods.
Suppose computer prices at an office supply store fall from $1,000 to $900 and as a result the quantity demanded of typewriters decreases from 40 to 20 per month. The cross-price elasticity of demand is closest to
A. 6.3. B. 5.0. C. 0.16. D. 0.2.
A monopoly is most likely to emerge and be sustained when:
A. economies of scale are large relative to market demand. B. firms have U-shaped average total cost curves. C. output demand is relatively elastic. D. fixed capital costs are small relative to total costs.