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Replicate Leontief's test using the data shown in the following table, compute the capital/labor ratio for exports and imports, and enter each value in the
Replicate Leontief's test using the data shown in the following table, compute the capital/labor ratio for exports and imports, and enter each value in the last column of the table. Capital Labor Capital/Labor Ratio Used to produce $1 Million Worth of... (Dollars) (Person-years) (Dollars per person-year) Exports 1,600,000 80 Imports 1,500,000 100 The numbers in the previous table show that U.S. exports are and U.S. imports are What do the results of your test illustrate? Check all that apply The Leontiel paradox The Heckscher Ohlin theory Which of the following explanations resolve the Leontief paradox? Check all that apply. Leontief wrongly assumed that the United States was abundant in labor, Leontief's test focused on labor and capital only, ignoring other factors of production The Heckscher-Ohlins model indudes only two goods, while U.S. exports and imports include many goods Leontiel did not distinguish between skilled and unstalled labor
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