Use the following to answer questions:
-(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 questions: 
-(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

In the production possibilities graph, Indonesia has a steeper slope for microchips and Malaysia has a steeper slope for tires. This means Indonesia can produce microchips more efficiently than Malaysia, while Malaysia can produce tires more efficiently than Indonesia. Therefore, Indonesia has a comparative advantage in microchips, while Malaysia has a comparative advantage in tires.

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