(Table: Capital Intensity Across Industries) Suppose that
The United States is labor abundant relative to Canada.
According to the table, which of the following U.S.
Industry(ies) is (are) MOST likely to export products to
Canada?
A)Furniture
B)Electronic and electrical equipment
C)Primary metal industries
D)Paper and allied products

Question

(Table: Capital Intensity Across Industries) Suppose that
The United States is labor abundant relative to Canada.
According to the table, which of the following U.S.
Industry(ies) is (are) MOST likely to export products to
Canada?
A)Furniture 
B)Electronic and electrical equipment 
C)Primary metal industries 
D)Paper and allied products

Quizplus · Accepted Answer

The United States is labor abundant relative to Canada, meaning that it has a comparative advantage in labor-intensive industries. Looking at the table, Furniture is the industry with the lowest capital intensity, indicating a higher reliance on labor. Therefore, it is most likely that the U.S. Furniture industry would export products to Canada.

(Table: Capital Intensity Across Industries) Suppose That