If Demand Reversal Is the Explanation for the Leontief Paradox

question 8

Multiple Choice

If demand reversal is the explanation for the Leontief paradox, this would imply that the demand by the United States for labor-intensive goods is relatively __________ and therefore that U.S. wages would be relatively __________ in comparison to wages in U.S. trading partners.

• A) low; low
• B) low; high
• C) high; low
• D) high; high

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Definitions:

Technology

The application of scientific knowledge for practical purposes, especially in industry.

Structure

The arrangement of and relations between the parts or elements of something complex, often referring to organizations or systems.

Felt Need

A personal perception of what is lacking and necessary for one's well-being, leading to motivation to fulfill that need.

Self-Esteem

An individual's subjective evaluation of their own worth or abilities.