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In the Early 1950s, the United States Was Abundant in Capital

Question 23

Multiple Choice

In the early 1950s, the United States was abundant in capital and, therefore, should have been exporting more capital-intensive goods.However, contrary to the factor proportions theory, the United States was importing more capital-intensive goods and exporting labor-intensive goods.This is an example of:


A) the product life cycle.
B) mercantilism.
C) the Leontief Paradox.
D) protectionism.
E) neo-mercantilism.

Correct Answer:

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