Which of the following statements is true of the Leontief Paradox?

A. It shows an anomaly that occurs when a nation has high domestic demand for a product.

B. It explains the relationship between domestic demand and comparative advantage.

C. It disproved Ricardo’s theory of comparative advantage.

D. It raised questions about the validity of the Heckscher-Ohlin theory.

ANSWER:

D. It raised questions about the validity of the Heckscher-Ohlin theory.