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What Is a Possible Explanation for the Leontief Paradox

Question 88

Multiple Choice

What is a possible explanation for the Leontief paradox?


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 all other foreign nations because of its advantageous factor endowments.

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