The input-output table, when divided vertically shows ?

Related Mcqs:

1. Wassily Leontief used an input output table in order to test the ?

   A. Ricardian theory of comparative advantage
   B. Heckscher Ohl in theory of comparative advantage
   C. Linder theory of overlapping demand
   D. All of the above

2. In his empirical tests, Wassily Leontief used an input-output table to ?

   A. calculate the capital and labor required to produce $1 million of U.S exports and imports
   B. calculate the labor productivity of America workers relative to foreign workers
   C. calculate the capital productivity of American capital relative to foreign capital
   D. All of the above

3. Engineers for the All-Terrain Bike Company have determined that a 15% increase in all inputs will cause a 15% increase in output Assuming that input prices remain constant, you correctly deduce that such a change will cause ________ as output increases?

   A. average costs to remain constant
   B. average costs to decrease
   C. average costs to increase
   D. marginal costs to increase

4. Micheal Roemer’s three-sector model shows that growth in the booming export sector I- reduces the price of foreign exchange II- retards other sectors’ growth by reducing incentives to export other commodities III- reduces incentives to replace domestic goods for imports IV- raises factor and input prices for non-booming sectors ?

   A. I and III only
   B. II and III only
   C. I, II and III only
   D. I, II , III only IV

5. Which of the following assumptions underlying input-output analysis raises about its validity ?

   I- The technical coefficients are fixed which means so substitution between inputs occurs
   II- There are no externalities so that the total effect of carrying out several activities is the sum of the separate effects
   III- Each good is produced by only one industry and each industry produces only one commodity
   IV- There is no technical change

   A. I and II only
   B. I, II, III only
   C. I, II, IV only
   D. I, II, III and IV

6. The functional distribution of income shows how national income is divided between ?

   A. employees
   B. the population
   C. the factors of production
   D. the working population

7. If both input and output markets are competitive and firms are profit maximizing, then in equilibrium each factor of production earns ?

   A. an amount equal to the price of output times total output
   B. the amount allocated by the political process
   C. an equal share of output
   D. the value of its marginal product

8. If input price prices adjusted very rapidly to output prices as classical economists argue the Philips curve would be ?

   A. Vertical or nearly vertical
   B. upward sloping
   C. downward sloping
   D. horizontal or nearly horizontal

9. The ability-to-pay principle of taxation suggests that if a tax system is to be vertically equitable it should be ?

   A. efficient
   B. progressive
   C. regressive
   D. proportional

10. Higher export demand __________ output and a higher MPZ __________ output?

    A. reduces, reduces
    B. reduces, increase
    C. increase, reduces
    D. increases, increases