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This Table Shows How Much Wine and Cheese Can Be

Question 39

Multiple Choice

This table shows how much wine and cheese can be produced in Spain and Portugal with one unit of equivalent resources. Initially there is no trade. Once trade opens up, transportation costs are assumed to be zero.  Wine  (units)   Cheese  (units)   Spain 28 Portugal 23 TABLE 33- 5\begin{array}{l}\begin{array} { | l | l | l | } \hline & \begin{array} { l } \text { Wine } \\\text { (units) }\end{array} & \begin{array} { l } \text { Cheese } \\\text { (units) }\end{array} \\\hline \text { Spain } & 2 & 8 \\\hline \text { Portugal } & 2 & 3 \\\hline\end{array}\\\text { TABLE 33- } 5\end{array}
-Refer to Table 33- 5. The comparative advantage in cheese is held by


A) -- insufficient information to know.
B) both countries.
C) Spain.
D) neither country.
E) Portugal.

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