Which of the following statements is NOT an explanation of Leontief's paradox?
A) Leontief ignored the fact that the United States imports a variety of products rather than just one.
B) He ignored the fact that U.S. labor is highly skilled.
C) He ignored the importance of land as a factor in many U.S. exports.
D) Trade patterns in 1947 might have been affected by the fact that World War II had ended only two years earlier.

Question

Quizplus · Accepted Answer

Leontief's paradox is the observation that the United States, a technologically advanced country, exports relatively more goods that are labor-intensive and imports relatively more goods that are capital-intensive compared to other developed countries. Leontief suggested that this was paradoxical as the United States has a higher capital-to-labor ratio than these other countries. This explanation does not contradict or address Leontief's paradox.

Which of the Following Statements Is NOT an Explanation of Leontief's