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-(Table: Comparative Advantage I)Use Table: Comparative Advantage I.Sweden has an absolute advantage in producing:
A)cell phones only.
B)herring only.
C)both cell phones and herring.
D)neither cell phones nor herring.

Question

Use the following to answer question:

-(Table: Comparative Advantage I)Use Table: Comparative Advantage I.Sweden has an absolute advantage in producing:
A)cell phones only. 
B)herring only. 
C)both cell phones and herring. 
D)neither cell phones nor herring.

Quizplus · Accepted Answer

Absolute advantage is the ability of a country to produce a good using fewer resources than another country. Looking at the table, Sweden has lower unit labor costs for producing herring compared to Japan. Therefore, Sweden has an absolute advantage in producing herring only.

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