Figure 2.7 Figure 2.7 Shows the Production Possibility Frontiers for Pakistan and Possibility

question 67

Multiple Choice

Figure 2.7

Figure 2.7 shows the production possibility frontiers for Pakistan and Indonesia. Each country produces two goods, cotton and cashews.
-Refer to Figure 2.7. 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?

• A)Indonesia
• B)They have the same advantage.
• C)Pakistan
• D)cannot be determined

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