As a test of the _____ theory, Leontief found (in the 1950s) that American exports embodied a _____ K/L ratio than American imports.
A) Stopler-Samuelson; higher
B) factor-proportions; lower
C) Ricardo; higher
D) Schumpeter; lower
E) Krugman; lower

Question

Quizplus · Accepted Answer

Leontief's paradox challenged the factor-proportions theory by finding that contrary to expectations, American exports were less capital-intensive than American imports, despite the U.S. being capital-abundant.

As a Test of the _____ Theory, Leontief Found (In