If Norwegian workers are more productive than Albanian workers, then trade between Norway and Albania
A) will take place so long as each country has a comparative advantage in a good or service that buyers in the other country want.
B) cannot take place until Albanian workers become more productive.
C) can take place only if Albania has an absolute advantage in producing a good or service Norwegian buyers want.
D) cannot take place because Norwegian goods and services will be less expensive than Albanian goods and services.
Question 2
Refer to Figure 6-8. Identify the two goods which are substitutes.
A) Good X and Good Z
B) Good Y and Good Z
C) Good X and Good Y
D) It is not possible to distinguish any relationship among the goods.
Norwegian Buhund
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