Leontief's result were considered paradoxical because the United Stated was believed to be ?
Correct answer: B. capital abundant relative to the rest of the world
- A. technologically efficient relative to the rest of the world
- B. capital abundant relative to the rest of the world
- C. labor abundant relative to the rest of the world
- D. All of the above
Explanation
The paradox arose because the United States was widely regarded as relatively capital-abundant, so Heckscher-Ohlin theory predicted capital-intensive exports. Leontief's results instead suggested relatively labor-intensive exports.
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