Leontief’s paradox is an example of testing a trade model using actual data observations. If Leontief had observed that the amount of labor needed per $1 million of U.S. exports was 392 person-years instead of 182, would he have reached the same conclusion? Explain.

Leontief’s paradox is an example of testing a trade model using actual data observations. If Leontief had observed that the amount of labor needed per $1 million of U.S. exports was 392 person-years instead of 182, would he have reached the same conclusion? Explain.

Macroeconomics

13th Edition

ISBN:9781337617390

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter21: International Trade

Section: Chapter Questions

Problem 2QP

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Leontief’s paradox is an example of testing a trade model using actual data observations. If

Leontief had observed that the amount of labor needed per $1 million of U.S. exports was 392 person-years instead of 182, would he have reached the same conclusion? Explain.

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