Question

Q
What does Leontief paradox state?
a) Country U exports and imports both were labor intensive
b) Country U exports were capital intensive and imports were labor intensive
c) Country U exports were labor intensive, and imports were capital intensive.
d) Country U exports and imports both were capital intensive
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Answer 1

Leontief's paradox in economics is that a country with a higher capital per worker has a lower capital/labor ratio in exports than in imports. Leontief inferred from this result that the U.S. should adapt its competitive policy to match its economic realities.

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