Which of the Following Was the Analysis Revealed by the "Leontief

question 93

Multiple Choice

Which of the following was the analysis revealed by the "Leontief paradox"?

• A) that despite having an abundant pool of labor, the U.S. was exporting capital-intensive goods
• B) that the U.S. often exported labor-intensive goods and imported more capital-intensive goods
• C) that international trade was simpler than perceived
• D) that contrary to the popular belief, new products are more likely to originate in developing economies

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Definitions:

Externality

A consequence of an economic activity experienced by unrelated third parties; can be positive or negative, affecting others not involved in the transaction.

Activity or Transaction

An economic event that involves a transfer or exchange of goods, services, or money between parties.

Environmental Economics

A subfield of economics dealing with the relationship between the economy and the environment, focusing on environmental policies and economic consequences.

Externalities

Economic side effects or consequences that affect uninvolved third parties; can be positive or negative.