One Potential Reasonable Explanation for the Leontief Paradox Is That

question 20

Multiple Choice

One potential reasonable explanation for the Leontief paradox is that

• A) The U.S. exports capital intensive goods
• B) U.S. labor is more productive than its foreign counterpart
• C) U.S. tastes were biased strongly in favor of capital intensive goods
• D) The two factor model that was used was incomplete

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Definitions:

Sources

The origins from which something is obtained or derived, often used in reference to gathering information or materials.

Destinations

The intended end points or locations where goods or travelers are headed.

Degeneracy

In operations research, this refers to a situation where a linear programming problem has more than one optimal solution path, possibly leading to an indefinite number of solutions.

Transportation Problem

A type of optimization and allocation problem in which goods are to be delivered from several suppliers to several consumers at the lowest cost.