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?

In the trade scenario between Country X and Country Y, Country Y has an absolute advantage in the production of solar panels. This is because it can produce more solar panels using the same amount of resources.

Explanation:

In this context, we need to determine which country, Country X or Country Y, has an absolute advantage in the production of solar panels. Absolute advantage refers to the ability of a trading partner to produce a specific good more efficiently using the same amount of resources.

According to the given data, Country X can produce 8 solar panels and Country Y can produce 12 solar panels using equal resources. Thus, Country Y has an absolute advantage in producing solar panels because it can produce more with the same amount of resources. This means that Country Y can potentially offer cheaper solar panels to its trading partners due to its efficient production.

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