Answer to Question #251725 in Macroeconomics for Tarryn

Question

Suppose that Switzerland can produce either 18 tons of chocolate or 9 tons of biscuit on a year while Norway can produce either 16 tons of chocolate or 4 tons of biscuits in a year. Which country has the absolute advantage

Answer 1

Absolute advantage means the uncontested superiority of a person, a business or a country to produce a particular good better. 

Switzerland has absolute advantage since it produces more tons of chocolate and biscuits than Norway.