(Table: Capital Intensity Across Industries) Suppose that the United States is labor abundant relative to Canada. According to the table, which U.S. industry is 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 U.S. industry is 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

According to the table, the furniture industry has the lowest capital intensity, meaning it relies more on labor than capital. Since the United States is labor abundant relative to Canada, it would make sense for the U.S. furniture industry to export products to Canada.

(Table: Capital Intensity Across Industries) Suppose That the United States