Although it is generally believed that the United States is a capital abundant country,it has been found on numerous occasions that its exports are more labor intensive than capital intensive. This is known as the:
A)Linder Concern
B)Adam Smith Conundrum
C)Heckscher-Ohlin Problem
D)Leontief Paradox
E)Ricardo Phenomenon

Question

Quizplus · Accepted Answer

The phenomenon where a capital abundant country like the United States exports goods that are more labor intensive than capital intensive is called the Leontief Paradox. This contradicts the predictions of the Heckscher-Ohlin theory, which suggests that in capital abundant countries, capital-intensive goods should be exported.

Although It Is Generally Believed That the United States Is