Which of the following is most likely to be a possible explanation for the Leontief paradox observed in the case of the United States?
A) U.S. imports goods that heavily use skilled labor and innovative entrepreneurship.
B) U.S. has a special advantage in producing new products made with innovative technologies.
C) U.S. exports heavy manufacturing products that use large amounts of capital.
D) U.S. has a strong absolute advantage over other nations because of its advantageous factor endowments.
E) U.S. imports goods that make intensive use of factors that are locally abundant.
Correct Answer:
Verified
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