Write an essay on the Leontief Paradox. Include in your discussion what Leontief found that was so paradoxical as well as a brief description of several of the various reconciliations that have been offered to explain the Paradox
What will be an ideal response?
Leontief found U.S. exports were relatively labor intensive, implying within the context of the Heckscher-Ohlin model that the United States is relatively labor abundant. Several reconciliations have been offered, including U.S. labor relatively more efficient (Leontief), importance of natural resources (Vanek), U.S. tariff structure (Travis), and international differences in tastes and technologies.
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A constitutional balanced budget amendment would
A) require a majority vote of Congress to authorize spending increases. B) require that the federal government maintain a balanced operating budget only. C) require that federal expenditures equal revenues (excluding borrowing). D) divide the federal budget into a capital budget and an operating budget.
If the inflation rate is negative, the price level in an economy is
A) falling. B) rising slowly. C) constant. D) rising rapidly.
If a private bank lends money to another bank, the interest rate that is charged for the loan is the:
A. Discount rate B. Prime rate C. Federal funds rate D. Loan rate
If the price level were to rise from 160 to 200, in what direction and by how much would the value of a dollar change?