Table 3-5
Assume that England and Spain can switch between producing cheese and producing bread at a constant rate.

-Refer to Table 3-5.England has a comparative advantage in the production of
A) cheese and Spain has a comparative advantage in the production of bread.
B) bread and Spain has a comparative advantage in the production of cheese.
C) both goods and Spain has a comparative advantage in the production of neither good.
D) neither good and Spain has a comparative advantage in the production of both goods.

Question

Table 3-5
Assume that England and Spain can switch between producing cheese and producing bread at a constant rate.
 
-Refer to Table 3-5.England has a comparative advantage in the production of
A) cheese and Spain has a comparative advantage in the production of bread. 
B) bread and Spain has a comparative advantage in the production of cheese. 
C) both goods and Spain has a comparative advantage in the production of neither good. 
D) neither good and Spain has a comparative advantage in the production of both goods.

Quizplus · Accepted Answer

Comparative advantage is determined by the lower opportunity cost of producing a good. If England has a comparative advantage in cheese, it means it can produce cheese at a lower opportunity cost than Spain, while Spain has a comparative advantage in bread, meaning it can produce bread at a lower opportunity cost than England.

Table 3-5 Assume That England and Spain Can Switch Between Producing Cheese