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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