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

-Refer to Table 3-6.England and Spain both could benefit,relative to a situation in which neither country is specializing,by England specializing in
A)bread and Spain specializing in cheese.
B)cheese and Spain specializing in bread.
C)both goods and Spain specializing in neither good.
D)neither good and Spain specializing in both goods.

Question

Use the accompanying table to answer the following questions:
Table 3-6
 
-Refer to Table 3-6.England and Spain both could benefit,relative to a situation in which neither country is specializing,by England specializing in
A)bread and Spain specializing in cheese. 
B)cheese and Spain specializing in bread. 
C)both goods and Spain specializing in neither good. 
D)neither good and Spain specializing in both goods.

Quizplus · Accepted Answer

England and Spain can benefit from specialization if each country focuses on producing the good for which it has a comparative advantage. If England specializes in bread and Spain specializes in cheese, both countries can trade to achieve better outcomes than if they did not specialize.

Use the Accompanying Table to Answer the Following Questions