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When Wassily Leontief Tested the Predictions of the Heckscher-Ohlin Theory

Question 8

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When Wassily Leontief tested the predictions of the Heckscher-Ohlin theory, he found that in 1947 the United States was exporting relatively labor-intensive goods and importing relatively capital-intensive goods. His findings:


A) contradicted the Heckscher-Ohlin theory, because the United States was relatively capital-abundant.
B) contradicted the Heckscher-Ohlin theory, because the United States was relatively labor-abundant.
C) were never supported by other studies and has thus been labeled a paradox.
D) were consistent with the predictions of the Heckscher-Ohlin theory.

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