Cashews(pounds)150Pakistan240 Cotton(bolts)Cashews(pounds)120Indonesia320 Cotton(bolts)The figure above shows the production possibilities frontiers for Pakistan andIndonesia. Each country produces two goods, cotton and cashews.If the two countries have the same amount of resources and the same technologicalknowledge, which country has an absolute advantage in the production of cotton? The figure above shows the production possibilities frontiers for Pakistan andIndonesia. Each country produces two goods, cotton and cashews.If the two countries have the same amount of resources and the same technologicalknowledge, which country has an absolute advantage in the production of cotton?They have the same advantage.Indonesia.cannot be determined.Pakistan.

Opportunity cost is the next best alternative.Opportunity cost shows the forgone units of one good…

Cashews (pounds) 150 Pakistan 240 Cotton (bolts) Cashews (pounds) 120 Indonesia 320 Cotton (bolts) The figure above shows the production possibilities frontiers for Pakistan and Indonesia. Each country produces two goods, cotton and cashews. If the two countries have the same amount of resources and the same technological knowledge, which country has an absolute advantage in the production of cotton?

Cashews (pounds) 150 Pakistan 240 Cotton (bolts) Cashews (pounds) 120 Indonesia 320 Cotton (bolts) The figure above shows the production possibilities frontiers for Pakistan and Indonesia. Each country produces two goods, cotton and cashews. If the two countries have the same amount of resources and the same technological knowledge, which country has an absolute advantage in the production of cotton?

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter18: Trading With Other Nations

Section: Chapter Questions

Problem 10AA

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Question

Cashews
(pounds)
150
Pakistan
240 Cotton
(bolts)
Cashews
(pounds)
120
Indonesia
320 Cotton
(bolts)
The figure above shows the production possibilities frontiers for Pakistan and
Indonesia. Each country produces two goods, cotton and cashews.
If the two countries have the same amount of resources and the same technological
knowledge, which country has an absolute advantage in the production of cotton?

The figure above shows the production possibilities frontiers for Pakistan and
Indonesia. Each country produces two goods, cotton and cashews.
If the two countries have the same amount of resources and the same technological
knowledge, which country has an absolute advantage in the production of cotton?
They have the same advantage.
Indonesia.
cannot be determined.
Pakistan.

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