Which of the following is the theory that is criticized that the data used in the analysis are not reliable enough and the study was conducted for the year immediately after the war? Please choose one: a

The correct option is 'leontiff paradox'. Leontiff paradox contradicts the H-O theory which states that a labour(capital)abundant country export labour(capital) intensive goods and import capital(labour) intensive goods. Leontiff did case study on US economy and through help of input output table found that US a capital abundant country actually exporting labour intensive goods and importing capital intensive goods.

 The correct option is 'international factor price equality theorem'. According to this theorem, as the price of the goods is equalised between two countries indulge in free trade then overtime price of factors of production such as wages of labour and rents on capital also get equalised.