Question 12(Multiple Choice Worth 4 points)
(05.04 MC)
A table showing worker hours to produce one unit of two common resources. Canada can produce lumber in 5 and oil in 20 worker hours. Russia produces lumber in 10 and oil in 10 worker hours. Saudi Arabia produces lumber in 60 and oil in 5 worker hours. United States produces lumber in 10 and oil in 15 worker hours. Venezuela produces lumber in 40 and oil in 15 worker hours. A third column, Worker Hours to Produce Oil instead of Lumber, has question marks instead of numbers for each country.
Given the data in the chart, over which country does the United States have a comparative advantage in oil production?
Canada
Russia
Saudi Arabia
Venezuela
