Leontief found that:
A) U.S. exports are neither labor nor capital intensive.
B) U.S. exports are capital intensive relative to U.S. imports.
C) U.S. imports are capital intensive relative to U.S. exports.
D) U.S. trade conforms perfectly to the predictions of the factor-proportions model.
E) capital was scarce in the U.S.

Question

Quizplus · Accepted Answer

Leontief's paradox found that contrary to the expectations of the Heckscher-Ohlin theory (which would predict that the U.S. would export capital-intensive goods due to its capital abundance), U.S. exports were less capital intensive than U.S. imports.

Leontief Found That