Which of the following explanations resolve the Leontief paradox?a. Leontief assumed that U.S. and foreign technologies were the same, while the Heckscher-Ohlin model assumes they are different. b. Leontief ignored land abundance in the United States.c. Leontief wrongly assumed that the United States was abundant in capital.d. Leontief’s test distinguished between skilled and unskilled labor, but ignored capital.

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29-02-2020
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Which of the following explanations resolve the Leontief paradox?a. Leontief assumed that U.S. and foreign technologies were the same, while the Heckscher-Ohlin model assumes they are different. b. Leontief ignored land abundance in the United States.c. Leontief wrongly assumed that the United States was abundant in capital.d. Leontief’s test distinguished between skilled and unskilled labor, but ignored capital.

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osondumartins osondumartins · Answer 1 · 2020-03-01T03:39:08+01:00

Answer:A. Leontief assumed that U.S. and foreign technologies were the same, while the Heckscher-Ohlin model assumes they are different

B. Leontief ignored land abundance in the United States

D. Leontief’s test distinguished between skilled and unskilled labor, but ignored capital.

Explanation:Leontief paradox is a Russian-American economist, his work was based on the work of Wassily W. Leontief he attempted to test the Heckscher–Ohlin theory ("H–O theory") empirically.

in economics tries to explain that a country with a higher capital per worker has a lower Capital per labor ratio in export than when compared to Import.

LEONTIEF IGNORED THE ABUNDANCE OF LAND IN MAKING HIS ASSUMPTIONS

HE ALSO CLASSIFIED THE U.S TECHNOLOGY AND OTHERS AS THE SAME WHICH IS NOT IN LINE WITH THE H-O MODEL ASSUMPTION.

LEONTIEF THEORY IGNORED CAPITAL DURING HIS TEST.