Scenario: Norway and Sweden each produce cloudberries (CB) and salted cod (SC). Their production possibilities curves for these two goods are shown below.

Production Possibilities: Norway and Sweden (thousands of kilos)

Opportunity Costs: Norway and Sweden

-Refer to the scenario above.________ has the absolute advantage in producing cloudberries,while ________ has the absolute advantage in producing salted cod.

Question

Scenario: Norway and Sweden each produce cloudberries (CB) and salted cod (SC). Their production possibilities curves for these two goods are shown below.
  
Production Possibilities: Norway and Sweden (thousands of kilos)
  
Opportunity Costs: Norway and Sweden
 
-Refer to the scenario above.________ has the absolute advantage in producing cloudberries,while ________ has the absolute advantage in producing salted cod.

Quizplus · Accepted Answer

Norway has the absolute advantage in producing both cloudberries and salted cod because it can produce more of these goods efficiently compared to Sweden, given the same amount of resources.

Scenario: Norway and Sweden Each Produce Cloudberries (CB) and Salted