The United States Requires 20 Hours of Labor to Produce

Multiple Choice

The United States requires 20 hours of labor to produce 1 ton of steel and 30 hours of labor to produce 1,000 board feet of lumber. In Canada, 20 hours of labor are required to produce 1 ton of steel and 25 hours of labor to produce 1,000 board feet of lumber. Which country has a comparative advantage in the production of lumber?

A) the United States
B) Canada
C) Neither the United States nor Canada has a comparative advantage.
D) Both the United States and Canada have a comparative advantage.