Figure 2-14 Figure 2-14 shows the production possibilities frontiers for Greenland and Iceland. Each country produces two goods, snow cones and popsicles.
-Refer to Figure 2-14. If the two countries have the same amount of resources and the same technological knowledge, which country has an absolute advantage in the production of popsicles?

Question

Figure 2-14  Figure 2-14 shows the production possibilities frontiers for Greenland and Iceland. Each country produces two goods, snow cones and popsicles.
-Refer to Figure 2-14. If the two countries have the same amount of resources and the same technological knowledge, which country has an absolute advantage in the production of popsicles?

Quizplus · Accepted Answer

Greenland has an absolute advantage in the production of popsicles because it can produce more popsicles with the same amount of resources and technological knowledge than Iceland.

Figure 2-14 Figure 2-14 Shows the Production Possibilities Frontiers