One potential reasonable explanation for the Leontief paradox is that
A) The U.S. exports capital intensive goods
B) U.S. labor is more productive than its foreign counterpart
C) U.S. tastes were biased strongly in favor of capital intensive goods
D) The two factor model that was used was incomplete

Question

Quizplus · Accepted Answer

The two factor model that was used in the original Leontief paradox analysis did not include factors such as technological differences and comparative advantage, which could have played a significant role in explaining the results. This suggests that the paradox may have been a result of using an incomplete model.

One Potential Reasonable Explanation for the Leontief Paradox Is That