Question

The Leontieff Paradox: Seleccione una: a. Refers to the finding that the U.S. produces outside its Edgeworth Box b. Refers to the finding that U.S.exports were more labor intensive than its imports c. Refers to the finding that U.S exports were more capital intensive than its exports d. Still accurately applies to today's pattern of U.S. international trade

Answer 1

The correct answer is letter "B": Refers to the finding that U.S. exports were more labor intensive than its imports.

Step-by-step explanation:

Named after Russian-American economist Wassily Leontief (1906-1999) established that industrialized countries possess more labor-intensive than countries in ways of development. By 1947, Leontieff concluded after his research that the U.S. focused his exports in labor-intensive products and not in the capital.

The paradox was created because the U.S. operations opposed the idea during those years that leading economies in the world would be less labor-intensive than developing countries.

Answer 2

Answer: b. Refers to the finding that U.S.exports were more labor intensive than its imports

Step-by-step explanation:

Heckscher-Ohlin theory is an Economic theory that holds in it's basic form that a country that is more abundant in a resource will produce and export more of that product.

Wassily Leontief, a Russian American economist decided to test the theory. He observed that the United States was relatively rich in capital and so should in theory be exporting Capital intensive goods whilst importing labour intensive goods.

His finding was a bit shocking to say the least when he showed that the US was in fact, exporting more labour intensive goods and importing more capital intensive ones. This is why it was called a Paradox because it disputed the Heckscher-Ohlin theory.

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