The Leontief paradox refers to the empirical result that:
A) U.S. exports were more capital intensive than U.S. imports, even though the U.S. is regarded as a capital abundant country.
B) U.S. exports were more labor intensive than U.S. imports, even through the U.S. is regarded as a capital abundant country.
C) U.S. exports were more capital intensive than U.S. imports, even though the U.S. is regarded as a labor abundant country.
D) U.S. exports were more labor intensive than U.S. imports, even though the U.S. is regarded as a labor abundant country.
E) the U.S. only trade with other developed countries

Question

Quizplus · Accepted Answer

The Leontief paradox found that contrary to the Heckscher-Ohlin theory (which suggests that a country will export goods that utilize its abundant factors of production), the U.S. (a capital-abundant country) was exporting more labor-intensive goods rather than capital-intensive goods.

The Leontief Paradox Refers to the Empirical Result That