1.Which of the following statements best describes a possible resolution to the Leontief Paradox concerning U.S. factor abundance in 1947?

A. By adjusting the data to account forlabor skill level, the United States can be shown to be relatively scarcein effective labor.

B. By adjusting the data toaccount productivities of capital in different industries, the United States can be shown to be relatively scarcein effective capital.

c. By adjusting the data toaccount labor skill level, the United States can be shown to be relatively abundant in effective labor.

d. Corrected data indicate that the United States was actually was a capital-abundant and labor-scarce country in 1947.

2. We expect the value of the Intra-Industry Trade(IIT) Indexto vary by industry. Which of the following statements best describes our expectations about the value of the index for the industries identified below?

A. Shoes will have a larger index value than clothing.

B. Corn will have a larger index value than agricultural products.

C. Corn will have a larger index value than shoes.

D. Corn will have a smaller index value than shoes.

3. The source of trade in the Imperfect Competition Model is based on __________.

A. cost reductions from monopoly regulations.

B. comparative advantage from resource endowments.

c. comparative advantage from productivity differences.

d. cost reductions from accessing larger consumer markets.