Table 3-6

-Refer to Table 3-5.If England and Spain trade based on the principle of comparative advantage,which country will export or import each product?
A)England will export bread, and Spain will export cheese.
B)England will export bread, and Spain will export bread.
C)England will export cheese, and Spain will export cheese.
D)England will export cheese, and Spain will export bread.

Question

Table 3-6
 
-Refer to Table 3-5.If England and Spain trade based on the principle of comparative advantage,which country will export or import each product?
A)England will export bread, and Spain will export cheese. 
B)England will export bread, and Spain will export bread. 
C)England will export cheese, and Spain will export cheese. 
D)England will export cheese, and Spain will export bread.

Quizplus · Accepted Answer

England has a comparative advantage in producing bread, while Spain has a comparative advantage in producing cheese. Therefore, England will export bread, and Spain will export cheese.

Table 3-6 -Refer to Table 3-5.If England and Spain Trade Based on Spain