Table 2-5
Table 2-5 shows the number of labor hours required to produce a cell phone and a board foot of lumber in Estonia and Finland.
-Refer to Table 2-5.Estonia has a comparative advantage in the production of
A)both products.
B)lumber.
C)cell phones.
D)neither product.

Question

Table 2-5
  Table 2-5 shows the number of labor hours required to produce a cell phone and a board foot of lumber in Estonia and Finland.
-Refer to Table 2-5.Estonia has a comparative advantage in the production of
A)both products. 
B)lumber. 
C)cell phones. 
D)neither product.

Quizplus · Accepted Answer

Estonia requires fewer labor hours to produce a board foot of lumber than Finland, indicating that Estonia has a comparative advantage in lumber production. There is no clear indication of comparative advantage in cell phone production, as Finland requires fewer labor hours to produce a cell phone than Estonia, but the difference is minimal. Therefore, the correct answer is B, lumber.

Table 2-5 Table 2-5 Shows the Number of Labor Hours