Which of the following is not a potential explanation for the Leontief paradox?
A) The U.S. imposed high tariffs on labor-intensive products.
B) U.S. exports are intensive in the use of skilled labor.
C) The U.S. exports products that intensively use high technology.
D) The U.S. is a relatively labor-abundant country.
E) U.S. tariffs are too low.

Question

Quizplus · Accepted Answer

The Leontief Paradox refers to the empirical finding that, contrary to the Heckscher-Ohlin theory of comparative advantage, the United States (a capital-abundant country) exports labor-intensive goods and imports capital-intensive goods. Option D is not a potential explanation for the Leontief Paradox because it contradicts the premise that the U.S. is capital-abundant, not labor-abundant.

Which of the Following Is Not a Potential Explanation for the Leontief