The Leontief paradox questioned the validity of:
A)the comparative advantage model.
B)the HeckscherOhlin model.
C)the Riparian model.
D)the specificfactors model.

Question

The Leontief paradox questioned the validity of:
A)the comparative advantage model.
B)the Heckscher­Ohlin model.
C)the Riparian model.
D)the specific­factors model.

Quizplus · Accepted Answer

The Leontief paradox questioned the validity of the Heckscher-Ohlin model, which suggests that countries export goods that require factors of production in which they are abundant and import goods that require factors of production in which they are scarce. Leontief found evidence that the United States, which was abundant in capital, was exporting goods that were labor-intensive and importing goods that were capital-intensive, contrary to the predictions of the model.

The Leontief Paradox Questioned the Validity Of