The Leontief paradox provided:
A) Support for the principle of absolute advantage
B) Support for the factor endowment model
C) Evidence against the factor endowment model
D) Evidence against the principle of absolute advantage

Question

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The Leontief paradox was an unexpected finding from a study by Wassily Leontief, who found that the United States, despite having a relative abundance of capital and a scarcity of labor, was exporting labor-intensive goods and importing capital-intensive goods. This contradicted the predictions of the factor endowment model, which suggests that a country should export goods that use its abundant factors of production and import goods that use its scarce factors. Therefore, the Leontief paradox provided evidence against the factor endowment model.

The Leontief Paradox Provided