The United States Requires 20 Hours of Labor to Produce

question 151

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.

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Definitions:

365-Day Year

A standard year length used in some financial calculations, ignoring leap years.

Exact Simple Interest

Interest calculated precisely based on the principal amount, a fixed interest rate, and the number of days between payments.

365-Day Year

A method used in finance that assumes all years have 365 days for the purpose of interest calculation.

High-Speed Copy Machine

An office machine designed for rapid copying of documents and images, capable of producing numerous copies within a short period.