What Was "Paradoxical" About the Results of Leontief's Test of the Heckscher-Ohlin

question 4

Multiple Choice

What was "paradoxical" about the results of Leontief's test of the Heckscher-Ohlin model on U.S. trade?

• A) Leontief concluded that U.S. imports were more labor intensive than U.S. exports.
• B) Leontief concluded that U.S. imports were more capital intensive than U.S. exports.
• C) Leontief concluded that U.S. imports were primarily agricultural products.
• D) Leontief concluded that U.S. exports were not internationally competitive.

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Definitions:

Services Rendered

Work or assistance provided by someone following a request or agreement.

Payment Schedule

A predetermined plan outlining the specific dates and amounts for payments to be made by one party to another, often used in billing and financial agreements.

Charges

Fee for services rendered.

Double-Entry Bookkeeping System

A bookkeeping method in which every transaction is entered twice, to two separate accounts, with one being a debit and the other a credit, to maintain the balance of the accounting equation.