Table 3-4
$\begin{array}{|l|c|c|c|c|}\hline&\text { Labour hours needed to make one unit of: }&&\text { Amount Produced in } 40 \text { hours: }\
\hline & \text { Cheese } & \text { Bread } & \text { Cheese } & \text { Bread } \
\hline \text { England } & 3 & 2 & 13.3 & 20 \
\hline \text { Spain } & 1 & 5 & 40 & 8 \
\hline
\end{array}$
-Refer to Table 3-4.If England and Spain trade according to the principle of comparative advantage, Spain will export which product to England?
A)bread
B)both bread and cheese
C)cheese
D)Spain cannot benefit from trade with England

Question

Table 3-4
 $\begin{array}{|l|c|c|c|c|}\hline&\text { Labour hours needed to make one unit of: }&&\text { Amount Produced in } 40 \text { hours: }\
\hline & \text { Cheese } & \text { Bread } & \text { Cheese } & \text { Bread } \
\hline \text { England } & 3 & 2 & 13.3 & 20 \
\hline \text { Spain } & 1 & 5 & 40 & 8 \
\hline
\end{array}$
-Refer to Table 3-4.If England and Spain trade according to the principle of comparative advantage, Spain will export which product to England?
A)bread
B)both bread and cheese
C)cheese
D)Spain cannot benefit from trade with England

Quizplus · Accepted Answer

According to the principle of comparative advantage, a country should export the product that it has a lower opportunity cost of producing. In this case, Spain has a lower opportunity cost of producing cheese than bread compared to England. Therefore, Spain will export cheese to England.

Table 3-4 -Refer to Table 3-4