When Wassily Leontief tested the predictions of the Heckscher-Ohlin theory, he found that in 1947 the United States was exporting relatively labor-intensive goods and importing relatively capital-intensive goods. His findings:
A)contradicted the Heckscher-Ohlin theory, because the United States was relatively capital-abundant.
B)contradicted the Heckscher-Ohlin theory, because the United States was relatively labor-abundant.
C)were never supported by other studies and has thus been labeled a paradox.
D)were consistent with the predictions of the Heckscher-Ohlin theory.

Question

Quizplus · Accepted Answer

Leontief's findings contradicted the Heckscher-Ohlin theory, which would predict that a capital-abundant country like the United States would export capital-intensive goods and import labor-intensive goods, opposite of what was observed.

When Wassily Leontief Tested the Predictions of the Heckscher-Ohlin Theory