Which of the following is NOT an explanation of Leontief's
Paradox?
A)Leontief did not distinguish between highskilled and lowskilled labor.
B)The United States was not engaged in completely free trade in 1947 as the HO assumes.
C)The data from 1947 might be unusual because the war had recently ended.
D)United States' trading partners gave preferential treatment to US exports.

Question

Which of the following is NOT an explanation of Leontief's
Paradox?
A)Leontief did not distinguish between high­skilled and low­skilled labor.
B)The United States was not engaged in completely free trade in 1947 as the HO assumes.
C)The data from 1947 might be unusual because the war had recently ended.
D)United States' trading partners gave preferential treatment to US exports.

Quizplus · Accepted Answer

The preferential treatment given by trading partners to US exports is not considered as an explanation of Leontief's Paradox. The paradox arises from the fact that the United States, despite being capital-abundant, was importing labor-intensive goods and exporting capital-intensive goods, contrary to the predictions of the Heckscher-Ohlin model. The other options are explanations that have been proposed for the paradox.

Which of the Following Is NOT an Explanation of Leontief's