Assume it takes Venezuela 3 hours to produce a batch of apples and 7.5 hours to produce a batch of pumpkins, and it takes the United States 3 hours to produce a batch of apples and 8.5 hours to produce a batch of pumpkins. Which nation has an absolute advantage in producing pumpkins?

The nation with an absolute advantage in the production of pumpkins would be Venezuela.

In economics, absolute advantage refers to the ability of an entity to produce a good or service at a lower cost/time per unit given the same resources as another entity.

In other words, given the same quantity of input and time, an individual, a company, or a nation that produces greater output over the other has an absolute advantage at producing such an output.

Hence, if it takes Venezuela 7.5 hours to produce the same batch of pumpkins that the United States produces in 8.5 hours, then, Venezuela has an absolute advantage in producing pumpkins over the United States.

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