Assertion (A): The Leontief Paradox weakened the empirical credibility of the Heckscher-Ohlin model. Reason (R): The United States, being capital-abundant, was found to be exporting labour-intensive goods, contrary to the H-O prediction that capital-abundant nations export capital-intensive goods.

Which of the following is NOT a commonly proposed explanation for the Leontief Paradox?

In relation to the Heckscher-Ohlin theory, in comparison between countries X and Y, which of the following statements are true? a) Country X is capital-abundant if the relative price of capital in X is lower than in Y. b) Country X is capital-abundant if the relative price of capital in X is higher than in Y. c) Country Y is capital-abundant if the relative price of capital in Y is lower than in X. d) Country Y is capital-abundant if the relative price of capital in Y is higher than in X.