Leontief's Results Can Be Interpreted as

question 21

Multiple Choice

Leontief's results can be interpreted as

• A)evidence against the classical model.
• B)evidence against the Heckscher-Ohlin model.
• C)support for the classical model.
• D)support for the Heckscher-Ohlin model.

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Definitions:

Fixed Manufacturing Overhead

The set of production costs that do not change with the level of production, including salaries, rent, and insurance of the factory.

Direct Labor

The labor costs directly attributed to the production of goods, including wages of workers who are actively involved in the manufacturing process.

Raw Material

The basic materials from which a product is made, used in the manufacturing or production process.

Work in Process

Partially finished goods that are still undergoing manufacturing processes but are not yet complete products.