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Country X and Country Y are trading partners, and both produce furnaces and solar panels. The countries can produce the following amounts using equal amounts of resources. Country X: 6 furnaces or 8 solar panels Country Y: 6 furnaces or 12 solar panels Which country has an absolute advantage in producing solar panels?

Answer :

Final answer:

Country Y has an absolute advantage in producing solar panels.

Explanation:

Country Y has an absolute advantage in producing solar panels. An absolute advantage occurs when a country can produce a good using fewer resources.

In this case, Country Y can produce 12 solar panels with the same amount of resources that Country X uses to produce 8 solar panels.

Therefore, Country Y has an absolute advantage in producing solar panels.

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