US and Canada Can Both Grow Wheat and Can Do

Multiple Choice

US and Canada can both grow wheat and can do mining. Use the following table to look for which country has a comparative advantage in mining. (HINT: Find the cost of mining in terms of wheat in each country.)

A) Canada has a comparative advantage in mining.
B) The US has a comparative advantage in mining.
C) No comparative advantage in mining exists for either nation.
D) We must first know the exchange rate to be able to answer this question.
E) Both a and b.