CA Foundation P4 · Chapter 9 · Question 15 of 15
Leontief's empirical test of the Heckscher-Ohlin theory found that the United States, a capital-abundant country, exported relatively labour-intensive goods. This finding is known as:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) The Leontief paradox
Explanation
Contrary to the Heckscher-Ohlin prediction, Leontief (1953) found US exports were more labour-intensive than its import-competing goods. Explanations offered include the high productivity (skill) of US labour and the role of natural resources.
More International Trade MCQs
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