Why do we observe the Leontief paradox?

What will be an ideal response?

There are many possible answers. They may be classified into three groups. One would argue that the model, or theory is wrong. The second would argue that the theory is correct (internally consistent and descriptive of real world data), but the real world data is incorrectly perceived, defined or measured. The third would argue that the statement itself is wrong, and that in fact the Leontief paradox itself is not actually observed, but rather is due to faulty logical rendering of the original model. Empirical studies conducted since Leontief's work was published suggest that, by relaxing the model's restrictive assumptions regarding technology, goods, and trade costs, evidence in support of the HO model was strengthened and evidence of the Leontief effect was diminished.

Economics

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Refer to Figure 13.1. Assume the voting method used to select a location for the recreation center is the Borda-count method, where if a town gets ranked #1, it gets 3 points, a town ranked #2 gets 2 points,

a town ranked #3 gets 1 point, and a town ranked #4 gets no points. With this method, the town that gets the least number of points is A) Desert Sands. B) Glacier Cove. C) Mountain View. D) Oceanside.

Economics

Which of the following represents the equation that would be used to determine the yield to maturity of a corporate bond with a face value of $1000, price of $1100, coupon rate of 5%, and maturity in three years?

A) $1100 = $1500/(1 + i)3 B) $1100 = $500/(1 + i) + $500/(1 + i)2 + 1000/(1 + i)3 C) $1100 = $500/(1 + i) + $500/(1 + i)2 + 500/(1 + i)3 D) $1100 = $500/(1 + i) + $500/(1 + i)2 + 1500/(1 + i)3

Economics