A Problem with Leontief's Methodology Is That

question 41

Multiple Choice

A problem with Leontief's methodology is that

• A)he had no information on U.S. and foreign factor endowments.
• B)he did not use information on foreign factor intensities.
• C)he ignored the roles of other factors of production such as natural resources.
• D)All of the above are problems.

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Definitions:

Quantity Supplied

The cumulative volume of a specific good or service that suppliers are enthusiastic and able to sell at a given price within a set timeframe.

Price Floor

A government- or authority-set minimum price for certain goods or services, aimed at preventing prices from falling below a certain level.

Black Markets

Illegal trading of goods and services that occurs outside the official channels sanctioned by authorities.

Price Ceilings

An imposed limit on the price charged for a product or service, often set by government regulation to protect consumers from excessively high prices.