The table given below represents butter and ham production by two countries Norway and Sweden.Table 2.5

-Economists refer to the ability of one person or nation to do something with a lower opportunity cost than another as _____.

Question

The table given below represents butter and ham production by two countries Norway and Sweden.Table 2.5
 
-Economists refer to the ability of one person or nation to do something with a lower opportunity cost than another as _____.

Quizplus · Accepted Answer

The concept described in the question is comparative advantage. Norway has a lower opportunity cost of producing butter than Sweden, while Sweden has a lower opportunity cost of producing ham than Norway. By specializing in their respective comparative advantages and trading with each other, both countries can increase their overall production and consumption, leading to gains from trade. Therefore, the best choice is E, comparative advantage.

The Table Given Below Represents Butter and Ham Production by Two