Which of the following statements is NOT an explanation of Leontief's paradox?
a. Leontief ignored the fact that the United States imports a variety of products rather than just one.
b. He ignored the fact that U.S. labor is highly skilled.
c. He ignored the importance of land as a factor in many U.S. exports.
d. rade patterns in 1947 might have been affected by the fact that World War II had ended only two years earlier.
Ans: a. Leontief ignored the fact that the United States imports a variety of products rather than just one.
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A player is playing a pure strategy when:
A. he chooses a rule to randomize over the choice of a strategy. B. he chooses a strategy without randomizing. C. there is uncertainty in his choice. D. it is not perfectly predictable.
Which of the following events must cause equilibrium quantity to rise?
a. demand increases and supply decreases b. demand and supply both decrease c. demand decreases and supply increases d. demand and supply both increase
To achieve the optimal provision of public goods, the
a. market should be allowed to arrive at an equilibrium without government intervention. b. government must limit the provision of the goods. c. government must tax producers of the goods. d. government must either provide the goods or subsidize their production.
Assume the marginal propensity to consume (MPC) is 0.80 and the government increases taxes by $100 billion. The aggregate demand curve will shift to the:
A. left by $80 billion. B. right by $200 billion. C. right by $400 billion. D. left by $400 billion.