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.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? [email protected]
About Microeconomics
Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
Practise Microeconomics
1,742 free Microeconomics MCQs from Economics, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
Exams that ask Economics questions like this
Economics is on 3 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Microeconomics questions
Wassily Leontief's results can be interpreted as ?
The factor endowment theory was pioneered by ?
Assume that Country A is relatively abundant in labor and Country B is relatively abundant in land Note that wages are the returns to labor and rents are the returns to land According to the factor price equalization theorem, once Country A begins specializing according to comparative advantage and trading with Country B: A. wages and rents should fall in Country A B. wages and rents should rise in Country A C. wages should rise and rents should fall in Country A D. wages should fall and rents should raise in Country A ?
In his empirical tests, Wassily Leontief used an input-output table to ?
Wassily Leontief used an input output table in order to test the ?
The Heckscher-Ohlin theorem states that a country will have comparative advantage in the good whose production in relatively intensive in the with which the country is relatively abundant ?