Moderate

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

Correct answer: A. calculate the capital and labor required to produce $1 million of U.S exports and imports

  • 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

Explanation

Leontief's input-output analysis estimated the quantities of capital and labor embodied in a fixed value of U.S. exports and imports. Comparing these factor requirements tested whether U.S. trade matched its presumed capital abundance.

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