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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Economies of scope exist between book publishing and magazine publishing if
A) the cost of publishing a magazine is lower for book publishers than for other firms. B) the cost of publishing a magazine is lower for firms that publish many magazines than for firms that publish only one magazine. C) the cost of publishing a book falls over time as the publisher acquires more experience. D) the cost of a publishing a book is not subject to diminishing marginal returns.
If a nation moves upward along its per-worker production function relating output per worker to capital per worker, then: a. labor productivity rises
b. labor productivity falls. c. the amount of capital decreases, other things constant. d. labor input decreases. e. the productivity of capital rises.