Use the following to answer question:
-(Figure: The Production Possibilities for Two Countries)Use Figure: The Production Possibilities for Two Countries.Indonesia has a comparative advantage in producing _____,while Malaysia has a comparative advantage in producing _____.

Question

Use the following to answer question: 
-(Figure: The Production Possibilities for Two Countries)Use Figure: The Production Possibilities for Two Countries.Indonesia has a comparative advantage in producing _____,while Malaysia has a comparative advantage in producing _____.

Quizplus · Accepted Answer

From the graph, Indonesia has a lower opportunity cost for producing microchips compared to Malaysia, meaning it has a comparative advantage in producing microchips. On the other hand, Malaysia has a lower opportunity cost for producing tires compared to Indonesia, meaning it has a comparative advantage in producing tires. Therefore, the correct answer is D.

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