Table 3-24
Assume that England and Spain can switch between producing cheese and producing bread at a constant rate.

-Refer to Table 3-24. England has an absolute advantage in the production of
A)cheese and Spain has an absolute advantage in the production of bread.
B)bread and Spain has an absolute advantage in the production of cheese.
C)both goods and Spain has an absolute advantage in the production of neither good.
D)neither good and Spain has an absolute advantage in the production of both goods.

Question

Table 3-24
Assume that England and Spain can switch between producing cheese and producing bread at a constant rate.
​  ​
-Refer to Table 3-24. England has an absolute advantage in the production of
A)cheese and Spain has an absolute advantage in the production of bread. 
B)bread and Spain has an absolute advantage in the production of cheese. 
C)both goods and Spain has an absolute advantage in the production of neither good. 
D)neither good and Spain has an absolute advantage in the production of both goods.

Quizplus · Accepted Answer

An absolute advantage means being able to produce more of a good with the same resources. If England has an absolute advantage in both goods, it means it can produce more cheese and bread than Spain with the same resources.

Table 3-24 Assume That England and Spain Can Switch Between Producing Cheese