Table 3-6

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

Question

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

Quizplus · Accepted Answer

England has a comparative advantage in bread if it can produce it at a lower opportunity cost than Spain. Spain has an absolute advantage in neither good if it cannot produce more of either good with the same resources compared to England.

Table 3-6 -Refer to Table 3-5.Which Country Has a Comparative or Absolute