Which of the Following Is Most Likely an Explanation for the Leontief

question 104

Multiple Choice

Which of the following is most likely an explanation for the Leontief paradox observed in the case of the United States?

• A)The United States imports goods that heavily use skilled labor and innovative entrepreneurship.
• B)The United States has a special advantage in producing new products made with innovative technologies.
• C)The United States exports heavy manufacturing products that use large amounts of capital.
• D)The United States has a strong absolute advantage over other nations because of its advantageous factor endowments.
• E)The United States imports goods that make intensive use of factors that are locally abundant.

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Definitions:

Supplies

Items used in the operation of a business but not directly related to the production of goods or services, such as office supplies.

Accounts Receivable

Money owed to a business by its clients or customers for goods or services delivered on credit.

Notes Payable

Written agreements in which one party agrees to pay another party a certain sum of money at a future date or on demand.

Debit

An accounting entry that results in either an increase in assets or a decrease in liabilities on a company's balance sheet.