The Leontief Paradox refers to the finding that U.S. exports were more labor intensive than its imports, which contradicted the Heckscher-Ohlin model's prediction that a capital-abundant country like the U.S. would export capital-intensive goods and import labor-intensive ones. Although this finding was first observed in the 1950s, subsequent studies have provided mixed evidence on its persistence.

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The Leontief Paradox

Question 54

Multiple Choice

A) still accurately applies to today's pattern of U.S. international trade.
B) refers to the fact that Leontief-an American economist-had a Russian name.
C) refers to the finding that the U.S. produces outside its Edgeworth Box.
D) refers to the finding that U.S. exports were more labor intensive than its imports.
E) refers to the finding that U.S. Exports were more capital intensive than its exports.

Correct Answer: