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 a comparative advantage in cheese.
B)bread and Spain has a comparative advantage in neither good.
C)cheese and Spain has a comparative advantage in both goods.
D)both goods and Spain has a comparative advantage in cheese.

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 a comparative advantage in cheese. 
B)bread and Spain has a comparative advantage in neither good. 
C)cheese and Spain has a comparative advantage in both goods. 
D)both goods and Spain has a comparative advantage in cheese.

Quizplus · Accepted Answer

England has an absolute advantage in both goods if it can produce more of both bread and cheese than Spain. Spain has a comparative advantage in cheese if it can produce cheese at a lower opportunity cost than England.

Use the Accompanying Table to Answer the Following Questions