The Leontief Paradox can best be described as __________.

Question

Quizplus · Accepted Answer

The Leontief Paradox refers to the phenomenon where a country with a capital-intensive economy (like the U.S.) ends up importing goods that are less capital-intensive, while exporting goods that are more capital-intensive. This was surprising because it contradicted the predictions of the Heckscher-Ohlin model, which states that countries should export goods that use their abundant factors of production (in this case, capital). Therefore, option C is the correct answer as it describes the paradox.

The Leontief Paradox Can Best Be Described as __________