The Leontief Paradox Refers to the Empirical Finding That U

question 9

Multiple Choice

The Leontief paradox refers to the empirical finding that U.S.

• A)import substitutes are more K-intensive than exports
• B)imports are more K-intensive than exports
• C)exports are more L-intensive than imports
• D)exports are more K-intensive than import substitutes

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Definitions:

Equity Securities

Financial assets representing ownership interest in a company, such as stocks.

Common Shares

Equity securities that signify ownership in a corporation and entitle the holder to a vote at shareholders' meetings and to receive dividends.

Preferred Shares

A class of ownership in a corporation that has a higher claim on its assets and earnings than common shares, often paid dividends before common shareholders.

Treasury Shares

Previously outstanding shares repurchased by a corporation that are not canceled or restored to unissued status.