Question

Please state and explain the Leontief Paradox

Please state and explain the Leontief Paradox

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Factor proportion theory (HO Model) of International trade is one of the most influential idea in international economics. Therefore, it has been a subject matter of extensive imperical testing. The most important emperical testing was done by Leontief on US data. As we know US continuous to be high on the ranking of capital-labor ratio. Therefore, we can expect US to be exporter of capital intensive good and importer of labor intensive good but this was not the case during 25 years after Second World War. Leontief study found that US exports were less capital intensive than US imports. This result is known as Leontief paradox.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
What is the Leontief Paradox? Provide 4 examples of the paradox in real-life.
What is the Leontief Paradox? Provide 4 examples of the paradox in real-life.
4. Resolution of the Leontief paradox The factor-endowment theory predicts that because the United States is...
4. Resolution of the Leontief paradox The factor-endowment theory predicts that because the United States is relatively abundant in capital and relatively scarce in labor, it will export capital-intensive goods, and its import-competing goods will be labor intensive. In the 1950s, Wassily Leontief, a Russian-American economist, tested this proposition by analyzing the capital/labor ratios of export industries and import-competing industries, using U.S. data. He found that the capital/labor ratio for U.S. export industries was lower than that of the United...
The Leontief Paradox found that U.S. exports were more capital-intensive than U.S. import-competing goods directly contradicting...
The Leontief Paradox found that U.S. exports were more capital-intensive than U.S. import-competing goods directly contradicting the factor-endowment theory. True False
1.       Explain and evaluate the paradox of Buridan’s donkey and what Spinoza’s view and use of...
1.       Explain and evaluate the paradox of Buridan’s donkey and what Spinoza’s view and use of this paradox.
Use the Marginal Propensity to Save (MPS) to explain the ‘paradox of thrift’.
Use the Marginal Propensity to Save (MPS) to explain the ‘paradox of thrift’.
Briefly explain whether the following statement is true or false. "The ‘paradox of thrift’ is the...
Briefly explain whether the following statement is true or false. "The ‘paradox of thrift’ is the argument that an increase in desired saving shifts the LM curve to the left as individuals increase their demand for money, thus lowering real GDP." Please answer elaborately with proper reasoning, graphs and equations. Also include a policy example.
Explain the paradox that establishing a union can increase both wages and employment, but once the...
Explain the paradox that establishing a union can increase both wages and employment, but once the union is established it must trade off increases in one for the other.
Explain the paradox that Durkheim’s theory of suicide addresses: that the most personal of acts (suicide)...
Explain the paradox that Durkheim’s theory of suicide addresses: that the most personal of acts (suicide) is influenced by society. Briefly define and offer an example of each kind of suicide. In your view, which type is most prevalent in our society, and why? (In 50 words)
Explain the paradox that the income tax generates excess burden even if the labor supply curve...
Explain the paradox that the income tax generates excess burden even if the labor supply curve is perfectly inelastic. In explaining your answer, highlight the difference between the regular (perfectly inelastic) supply curve and the compensated labor supply curve.
Political Economy Question: Explain the tendency for underconsumption crisis. Include in your answer, the paradox of...
Political Economy Question: Explain the tendency for underconsumption crisis. Include in your answer, the paradox of thrift, the absolute income hypothesis, the rising rate of exploitation and how these effect the tendency for the rate of growth of output to exceed the rate of growth of consumption.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT