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.If England and Spain each spends all its time producing the good in which it has a comparative advantage and the countries agree to trade 2 units of bread for 6 units of cheese,then England will consume
A) 34 units of cheese and 2 units of bread and Spain will consume 6 units of cheese and 3 units of bread.
B) 34 units of cheese and 2 units of bread and Spain will consume 16 units of cheese and 3 units of bread.
C) 34 units of cheese and 12 units of bread and Spain will consume 6 units of cheese and 3 units of bread.
D) 34 units of cheese and 12 units of bread and Spain will consume 16 units of cheese and 3 units of bread.

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.If England and Spain each spends all its time producing the good in which it has a comparative advantage and the countries agree to trade 2 units of bread for 6 units of cheese,then England will consume
A) 34 units of cheese and 2 units of bread and Spain will consume 6 units of cheese and 3 units of bread. 
B) 34 units of cheese and 2 units of bread and Spain will consume 16 units of cheese and 3 units of bread. 
C) 34 units of cheese and 12 units of bread and Spain will consume 6 units of cheese and 3 units of bread. 
D) 34 units of cheese and 12 units of bread and Spain will consume 16 units of cheese and 3 units of bread.

Quizplus · Accepted Answer

England will trade 2 units of bread for 6 units of cheese, resulting in a consumption of 34 units of cheese and 2 units of bread. Spain will consume the remaining 6 units of cheese and 3 units of bread.

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