Leontief's factor-proportions study found that U.S.:
A) imports were more labor intensive than exports.
B) imports were more capital intensive than exports.
C) imports were primarily agricultural products.
D) exports were not internationally competitive.
E) was not a competitive nation.

Question

Quizplus · Accepted Answer

Leontief's factor-proportions study, also known as the Leontief Paradox, found that contrary to the Heckscher-Ohlin theory, the U.S. (a capital-abundant country) was importing more capital-intensive goods and exporting more labor-intensive goods. This was unexpected because the Heckscher-Ohlin theory predicted that countries would export goods that intensively use their abundant factors of production.

Leontief's Factor-Proportions Study Found That U.S