Leontief's results were considered paradoxical because the United States was believed to be
A) technologically efficient relative to the rest of the world.
B) capital abundant relative to the rest of the world.
C) labor abundant relative to the rest of the world.
D) All of the above.
B
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If a nation has the lowest opportunity cost of producing a good, that nation has a(n) ________ in the production of that good.
A. comparative advantage B. absolute advantage and possibly a comparative advantage. C. absolute advantage D. comparative advantage and an absolute advantage
The face value of money or income is called its ________ value
A) external B) real C) marginal D) nominal
In long-run competitive equilibrium, a firm that owns factors of production will have an
A) economic profit = $0 and accounting profit > $0. B) economic profit > $0 and accounting profit = $0. C) economic and accounting profit = $0. D) economic and accounting profit > $0. E) economic and accounting profit can take any value.
According to the classical economists, unemployment was a temporary deviation from equilibrium, and certain forces in the economy would return it to full employment. Such forces did not include
a. price competition. b. wage competition. c. a variable rate of interest. d. discretionary government spending.