Scenario: Norway and Sweden Each Produce Cloudberries (CB) and Salted

Scenario: Norway and Sweden each produce cloudberries (CB) and salted cod (SC) . Their production possibilities curves for these two goods are shown below.

Production Possibilities: Norway and Sweden (thousands of kilos)

Opportunity Costs: Norway and Sweden

-Refer to the scenario above.If the terms of trade are 1.5 kilos of cloudberries for a kilo of salted cod,the terms of trade are ________.

A) not advantageous for either Norway or Sweden
B) advantageous for Norway but not for Sweden
C) advantageous for Sweden but not for Norway
D) advantageous for both Norway and Sweden

Correct Answer:

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