Question 4 1 pts Assume that Sweden has a comparative advantage in chocolate and Italy has...

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Question 4 1 pts Assume that Sweden has a comparative advantage in chocolate and Italy has a comparative advantage in wine. Also assume that Sweden has an absolute advantage in both chocolate and wine. If these two countries specialize and trade so as to maximize the benefits of specialization and trade, then the two countries will consume less than they would in the absence of trade. O the two countries' combined output of both goods will be lower than it would be in the absence of trade. Sweden will produce more chocolate than it would produce in the absence of trade. Italy will produce less wine than it would produce in the absence of trade. Question 4 1 pts Assume that Sweden has a comparative advantage in chocolate and Italy has a comparative advantage in wine. Also assume that Sweden has an absolute advantage in both chocolate and wine. If these two countries specialize and trade so as to maximize the benefits of specialization and trade, then the two countries will consume less than they would in the absence of trade. O the two countries' combined output of both goods will be lower than it would be in the absence of trade. Sweden will produce more chocolate than it would produce in the absence of trade. Italy will produce less wine than it would produce in the absence of trade.

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