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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The objective of creating value is the same as
A) maximizing shareholder value. B) maximizing profit. C) maximizing added value. D) all of these choices.
Suppose the cost of flying a 200-seat plane for an airline is $100,000 and there are 10 empty seats on a flight. If the marginal cost of flying a passenger is $200 and a standby passenger is willing to pay $300, the airline should
a. sell the ticket because the marginal benefit exceeds the marginal cost. b. sell the ticket because the marginal benefit exceeds the average cost. c. not sell the ticket because the marginal benefit is less than the marginal cost. d. not sell the ticket because the marginal benefit is less than the average cost.