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The figure shows the production possibility frontiers for two countries, Jackson and Tahoe. In autarky, Jackson produces and consumes 30 units of cattle and 80 units of wheat, while Tahoe produces and consumes 80 units of cattle and 60 units of wheat. Based on this information:
Jackson has a comparative advantage in the production of cattle.
Tahoe has a comparative advantage in the production of wheat.
Jackson has a comparative advantage in the production of wheat.
Jackson has an absolute advantage in the production of wheat.
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