If the US Trade Pattern Is as Indicated by the Leontief Test

question 17

Multiple Choice

If the U.S. trade pattern is as indicated by the Leontief test, this would suggest that participation in trade rather than in autarky by the United States has __________ the real return to U.S. capital and __________ the real wage of U.S. labor.

• A) increased; also has increased
• B) increased; has decreased
• C) decreased; has increased
• D) decreased; has decreased

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Definitions:

Decision-making Authority

The power or right to make decisions within an organization, group, or system.

Free Rider

An individual who benefits from the goods, services, or advantages provided by a group without contributing to the cost or effort involved.

Agency Shop Agreements

Labor agreements that require employees to either join the union or pay a fee equivalent to union dues, even if they choose not to become union members.

Fair Representation

The legal duty of a union to represent all members impartially and effectively, especially in negotiations and grievance processes.