The Leontief Paradox
A) failed to support the validity of the Heckscher-Ohlin model.
B) supported the validity of the Ricardian theory of comparative advantage.
C) supported the validity of the Heckscher-Ohlin model.
D) failed to support the validity of the Ricardian theory.
E) proved that the U.S. economy is different from all others.

Question

Quizplus · Accepted Answer

The Leontief Paradox showed that the US was exporting capital-intensive goods and importing labor-intensive goods, which was contrary to the predictions of the Heckscher-Ohlin model. This failure to support the model's predictions led to the questioning of its validity. Therefore, the correct option is A.