Iceland can produce 32 units of food per person per year or 16 units of clothing per person per year, but Lavaland can produce 16 units of food per year or 8 units of clothing. Which of the following is true?

Question

Quizplus · Accepted Answer

Iceland can produce more units of both food and clothing per person per year than Lavaland, indicating that Iceland has an absolute advantage in producing both goods. Comparative advantage is not assessed in the given choices directly, but Iceland's higher production capacity in both categories demonstrates its absolute advantage.

Iceland Can Produce 32 Units of Food Per Person Per