Table 3-6

-Refer to Table 3-5.Which country has an absolute advantage in each product?
A)England has an absolute advantage in bread, and Spain has an absolute advantage in cheese.
B)England has an absolute advantage in cheese, and Spain has an absolute advantage in bread.
C)England has an absolute advantage in neither good, and Spain has an absolute advantage in both goods.
D)England has an absolute advantage in both goods, and Spain has an absolute advantage in neither good.

Question

Table 3-6
 
-Refer to Table 3-5.Which country has an absolute advantage in each product?
A)England has an absolute advantage in bread, and Spain has an absolute advantage in cheese. 
B)England has an absolute advantage in cheese, and Spain has an absolute advantage in bread. 
C)England has an absolute advantage in neither good, and Spain has an absolute advantage in both goods. 
D)England has an absolute advantage in both goods, and Spain has an absolute advantage in neither good.

Quizplus · Accepted Answer

An absolute advantage occurs when a country can produce more of a good with the same resources compared to another country. If England has an absolute advantage in both goods, it means it can produce more bread and cheese than Spain using the same resources.

Table 3-6 -Refer to Table 3-5.Which Country Has an Absolute Advantage in an Absolute