Table 3-6

-Refer to Table 3-5.Which country has an absolute or comparative advantage in each product?
A)England has an absolute advantage in bread, and Spain has a comparative advantage in bread.
B)England has an absolute advantage in bread, and Spain has a comparative advantage in neither good.
C)England has an absolute advantage in cheese, and Spain has a comparative advantage in both goods.
D)England has an absolute advantage in both goods, and Spain has a comparative advantage in cheese.

Question

Table 3-6
 
-Refer to Table 3-5.Which country has an absolute or comparative advantage in each product?
A)England has an absolute advantage in bread, and Spain has a comparative advantage in bread. 
B)England has an absolute advantage in bread, and Spain has a comparative advantage in neither good. 
C)England has an absolute advantage in cheese, and Spain has a comparative advantage in both goods. 
D)England has an absolute advantage in both goods, and Spain has a comparative advantage in cheese.

Quizplus · Accepted Answer

England has an absolute advantage in both goods if it can produce more of both bread and cheese than Spain. Spain has a comparative advantage in cheese if it can produce cheese at a lower opportunity cost than England.

Table 3-6 -Refer to Table 3-5.Which Country Has an Absolute or Comparative