Table 3-6

-Refer to Table 3-6. If England and Spain trade based on the principle of comparative advantage, which product will Spain export to England?
A)Bread
B)both bread and cheese
C)Cheese
D)Spain cannot benefit from trade with England.

Question

Table 3-6
 
-Refer to Table 3-6. If England and Spain trade based on the principle of comparative advantage, which product will Spain export to England?
A)Bread 
B)both bread and cheese 
C)Cheese 
D)Spain cannot benefit from trade with England.

Quizplus · Accepted Answer

Spain has a comparative advantage in producing cheese, which means they can produce it at a lower opportunity cost than England. Therefore, they should export cheese to England and import bread from England to maximize the benefits of trade.

Table 3-6 -Refer to Table 3-6. If England and Spain Trade Based