Which of the following offers an explanation for the Leontief paradox?
I. Leontief's assumption that U.S. and foreign technologies are the same is incorrect.
II. Leontief did not incorporate land and other resources.
III. Leontief did not distinguish between skilled and unskilled labor.
a. I, II, and III
b. I and II
c. I and III
d. I
Answer: a. I, II, and III
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The table below shows four alternative techniques for assembling a car. The cost of labor is $20 per hour, and the cost of capital is $10 per hour. Which of the four techniques for assembling a car is not technologically efficient?
A) T-1 B) T-2 C) T-3 D) T-4
A speculator becomes the floating-rate payer in an interest-rate swap. She hopes that
A) long rates rise. B) long rates fall. C) short rates rise. D) short rates fall.
The process by which union and management representatives negotiate a mutually agreeable contract specifying wages, benefits, and working conditions is called
a. collective bargaining b. mediation c. arbitration d. striking e. litigation
If a perfectly competitive market is in equilibrium and then market demand increases, which of the following would happen?
a. producer surplus would definitely increase and consumer surplus may increase or decrease b. producer surplus would definitely decrease and consumer surplus may increase or decrease c. consumer surplus would definitely decrease and producer surplus may increase or decrease d. consumer surplus would definitely increase and producer surplus may increase or decrease e. producer and consumer surplus would remain unchanged