Leontief discovered a "paradox" in his test of the Heckscher-Ohlin model for the United States. He expected the United States to export _____-intensive goods and import _____-intensive goods; but his study indicated the reverse was true.
A) land; technology
B) labor; land
C) capital; labor
D) labor; capital

Question

Quizplus · Accepted Answer

Leontief expected the United States to export capital-intensive goods and import labor-intensive goods, based on the Heckscher-Ohlin model, which suggests that countries will export goods that intensively use their abundant factors of production. However, his findings showed the opposite, leading to the "Leontief Paradox."

Leontief Discovered a "Paradox" in His Test of the Heckscher-Ohlin