Which of the Following Offers an Explanation for the Leontief

question 113

Multiple Choice

Which of the following offers an explanation for the Leontief
Paradox?
I.Leon tief's assumption that U.S.and foreign
Technologies are the same is incorrect.
II.Leontief did not incorporate land a nd other resources.
III.Leontief did not distinguish between skilled and.
Unskilled labor.

• A)I, II, and III
• B)I and II
• C)I and III
• D)I

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Definitions:

Established Corporations

Corporations that have been in existence for a considerable period and have a stable position in the market, often characterized by a wide customer base and significant assets.

Interest-Rate Cost-of-Funds Curve

A graphical representation showing the relationship between the interest rates on loans and the total amount of funds loaned by banks.

MB = MC Decision Framework

A decision-making framework where optimal resource allocation occurs when marginal benefits (MB) equal marginal costs (MC).

Marginal Cost Element

An increase in total cost that results from producing one additional unit of a good or service.