The Leontief paradox provided:
A) support for the specific-factors model.
B) support for the factor-proportions theory.
C) evidence against the factor-proportions theory.
D) evidence against the Stopler-Samuelson theorem.
E) evidence favorable to Mercantilism.

Question

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The Leontief paradox challenged the factor-proportions theory (also known as the Heckscher-Ohlin theorem) by showing that the United States, which was relatively abundant in capital, exported labor-intensive goods and imported capital-intensive goods, contrary to what the theory would predict.

The Leontief Paradox Provided