The "Leontief paradox" refers to the empirical finding obtained by Wassily Leontief that, even though the United States was generally thought to be a relatively __________ country, it was found to be __________.
A) capital-abundant; exporting relatively labor-intensive goods and importing
Relatively capital-intensive goods
B) labor-abundant; exporting relatively capital-intensive goods and importing
Relatively labor-intensive goods
C) skilled-labor-abundant; exporting relatively unskilled-labor-intensive goods
And importing relatively skilled-labor-intensive goods
D) capital-abundant; exporting relatively skilled-labor-intensive goods and
Importing relatively unskilled-labor-intensive goods

Question

Quizplus · Accepted Answer

The Leontief Paradox challenges the Heckscher-Ohlin theory of international trade, which suggests that a country will export goods that utilize its abundant factors of production. Contrary to expectations, Leontief found that the U.S., despite being capital-abundant, exported labor-intensive goods and imported capital-intensive goods.

The "Leontief Paradox" Refers to the Empirical Finding Obtained by Wassily