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?

Microeconomics: Private and Public Choice (MindTap Course List)
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Chapter16: Gaining From International Trade
Section: Chapter Questions
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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?
Transcribed Image Text: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.
Transcribed Image Text: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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