Problem
1. What was the "Leontief paradox," and why was it a paradox?
2. What do you think is the major defect in the Leontief test that might have caused the paradox to occur? Why?
3. How might the existence of factor-intensity reversals be a reason for the Leontief paradox? How might the existence of demand reversal?
4. If you have traveled in a foreign country, would your observations confirm the view that the country's demand patterns reflect consumer preferences in that country for goods produced with the country's relatively abundant factor of production?