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What Is a Possible Explanation for Observing the Leontief Paradox

Question 41

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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