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.Spain should export
A) cheese and import bread.
B) bread and import cheese.
C) both goods and import neither good.
D) neither good and import 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.Spain should export
A) cheese and import bread. 
B) bread and import cheese. 
C) both goods and import neither good. 
D) neither good and import both goods.

Quizplus · Accepted Answer

Spain should export bread and import cheese if it has a comparative advantage in producing bread, meaning it can produce bread at a lower opportunity cost than cheese.

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