Draw production possibilities curves for Iceland and Snowland as they might look if Snowland had
an absolute advantage in making both goods and neither country could benefit from trade
with the
other country.
Gallons
of Ice
A
Iceland
Snowland
Cream
Pairs of Ice Skates



Answer :

I'm happy to help with that! 1. If Snowland has an absolute advantage in making both goods, their production possibilities curve will show that they can produce more gallons of ice cream and more pairs of ice skates compared to Iceland at any given point. 2. For Iceland, its production possibilities curve will reflect that it is less efficient than Snowland in producing both goods. This means Iceland will have a lower maximum potential production of both ice cream and ice skates compared to Snowland. 3. Since neither country can benefit from trade with the other country in this scenario, each country will operate independently and produce only what they can within their own production possibilities. 4. Therefore, the production possibilities curve for Snowland will be positioned further out in terms of both goods compared to Iceland, showcasing Snowland's absolute advantage in production. 5. In summary, the production possibilities curves for Iceland and Snowland in this scenario would illustrate Snowland's superior ability to produce more ice cream and ice skates compared to Iceland, indicating their absolute advantage in production without trade between the two countries.