The Leontief Paradox
A) failed to support the validity of the Heckscher-Ohlin model.
B) supported the validity of the Ricardian theory of comparative advantage.
C) supported the validity of the Heckscher-Ohlin model.
D) failed to support the validity of the Ricardian theory.
E) proved that the U.S. economy is different from all others.
A
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The productive resource that includes all the "gifts of nature" is called
A) land. B) labor. C) capital. D) entrepreneurshi
When price was 5, quantity demanded was 10. When price increased to 6, quantity demanded decreased to 9. Therefore, when price increased, total revenue
A. decreased from 54 to 50, indicating that demand is inelastic. B. increased from 50 to 54, indicating that demand is elastic. C. increased from 50 to 54, indicating that demand is inelastic. D. decreased from 54 to 50, indicating that demand is elastic.
Laura's Pizza Place incurs $800,000 per year in explicit costs and $100,000 in implicit costs. The restaurant earns $1.3 million in revenues and has $5 million in net worth. Based on this information, what is the economic profit for Laura's Pizza Place?
A) $200,000 B) $400,000 C) $500,000 D) $2.8 million
If the unemployment rate rises because the number of people not working but searching for work rises, economists would attribute this to the
A. discouraged worker effect. B. fallacy of composition. C. encouraged worker effect. D. none of the options are correct.