-Refer to Table 3-6. Which country has a comparative advantage in each product?
A) Denmark has a comparative advantage in bread, and Italy has a comparative advantage in cheese.
B) Denmark has a comparative advantage in cheese, and Italy has a comparative advantage in bread.
C) Denmark has a comparative advantage in both goods, and Italy has a comparative advantage in neither good.
D) Denmark has a comparative advantage in neither good, and Italy has a comparative advantage in both goods.

Question

-Refer to Table 3-6. Which country has a comparative advantage in each product?
A) Denmark has a comparative advantage in bread, and Italy has a comparative advantage in cheese. 
B) Denmark has a comparative advantage in cheese, and Italy has a comparative advantage in bread. 
C) Denmark has a comparative advantage in both goods, and Italy has a comparative advantage in neither good. 
D) Denmark has a comparative advantage in neither good, and Italy has a comparative advantage in both goods.

Quizplus · Accepted Answer

Comparative advantage is determined by which country can produce a good at a lower opportunity cost. Without seeing Table 3-6, the correct answer cannot be determined definitively. However, based on the structure of the question, choice A suggests that Denmark can produce bread at a lower opportunity cost than Italy, and Italy can produce cheese at a lower opportunity cost than Denmark, which is how comparative advantage is defined.