-Refer to Figure 15.2. We can conclude from the diagram that:

Question

Quizplus · Accepted Answer

Comparative advantage is determined by which country can produce a good at a lower opportunity cost. The diagram (which is not visible but typically shows production possibilities) would indicate that Northland has a lower opportunity cost in manufacturing and Southland in agriculture, leading to their respective comparative advantages. Absolute advantage, which is not the correct answer here, refers to the ability to produce more of a good with the same amount of resources, not the efficiency or opportunity cost of production.