Leontief discovered a "paradox" in his test of the HOmodel for the United States. He expected the United States to export _____intensive goods and import _____ intensive goods; but his study indicated the reverse was TRUE.
a. land; technology
b. labor; land
c. capital; labor
d. labor; capital
Answer: c. capital; labor
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Which of the following statements is true?
A) Cultural and geographical conditions of a nation can be considered proximate causes of prosperity. B) Stock of human capital and the geography of a nation can be considered fundamental causes of prosperity. C) Stock of human capital and physical capital available to a nation can be considered proximate causes of prosperity. D) Stock of human capital and the geography of a nation can be considered proximate causes of prosperity.
One reason the aggregate demand curve is downward sloping is because of the
A) interest rate effect. B) tariff effect. C) welfare effect. D) price effect.
Refer to Figure 15-2. The firm's profit-maximizing price is
A) P1. B) P2. C) P3. D) P4.
The long-run price elasticity of demand for a good is usually larger than its short-run price elasticity because
a. as the saying goes, "out of sight, out of mind" b. more goods are demanded in the long run than in the short run c. people have more time to find substitute goods d. incomes tend to rise over time e. supply curves shift outward over time