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Q. Why do we observe the Leontief paradox?
Answer: There are several possible answers that they may be categorized into three groups. One would argue that the theory or model is wrong. The other would dispute that the theory is correct (internally consistent and descriptive of real world data) however the real world data is incorrectly defined perceived, or measured. The third would dispute that the statement itself is wrong, and that in reality the Leontieff paradox itself isn't actually observed, but somewhat is due to faulty logical rendering of the original model.
Discuss the differences between Absolute PPP and Relative PPP . Answer: Absolute Purchasing Power Parity (PPP) states that the exchange rate between two currencies equals the
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Q. The two deadweight triangles are the Production distortion and Consumption distortion losses. It is simple to understand why the Consumption distortion constitutes a loss for
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