Use the accompanying table to answer the following questions:
Table 3-6

-Refer to Table 3-6.England has an absolute advantage in
A)bread and Spain has an absolute advantage in cheese.
B)cheese and Spain has an absolute advantage in bread.
C)neither good and Spain has an absolute advantage in both goods.
D)both goods and Spain has an absolute advantage in neither good.

Question

Use the accompanying table to answer the following questions:
Table 3-6
 
-Refer to Table 3-6.England has an absolute advantage in
A)bread and Spain has an absolute advantage in cheese. 
B)cheese and Spain has an absolute advantage in bread. 
C)neither good and Spain has an absolute advantage in both goods. 
D)both goods and Spain has an absolute advantage in neither good.

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 they can produce more bread and cheese than Spain using the same resources.

Use the Accompanying Table to Answer the Following Questions