What Is a Possible Explanation for Observing the Leontief Paradox

question 49

Multiple Choice

What is a possible explanation for observing the Leontief paradox?

• A) The Leontief paradox makes perfect sense.
• B) The U.S. has a special advantage in producing new products or goods made with innovative technologies.
• C) Other countries don't have the technologies that the U.S. has.
• D) Labour costs are much lower in developing countries.
• E) For many products the market size is much larger in India and China.

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