Table 3-5
Assume that England and Spain can switch between producing cheese and producing bread at a constant rate.

-Refer to Table 3-5.England should specialize in the production of
A) cheese and Spain should specialize in the production of bread.
B) bread and Spain should specialize in the production of cheese.
C) both goods and Spain should specialize in the production of neither good.
D) neither good and Spain should specialize in the production of both goods.

Question

Table 3-5
Assume that England and Spain can switch between producing cheese and producing bread at a constant rate.
 
-Refer to Table 3-5.England should specialize in the production of
A) cheese and Spain should specialize in the production of bread. 
B) bread and Spain should specialize in the production of cheese. 
C) both goods and Spain should specialize in the production of neither good. 
D) neither good and Spain should specialize in the production of both goods.

Quizplus · Accepted Answer

England should specialize in the production of cheese and Spain in bread if England has a comparative advantage in cheese and Spain in bread, meaning they can produce these goods at a lower opportunity cost compared to the other country.

Table 3-5 Assume That England and Spain Can Switch Between Producing Cheese