Table 3-5
Assume that England and Spain can switch between producing cheese and producing bread at a constant rate.
-Refer to Table 3-5. Assume that England and Spain each has 40 labor hours available. Originally, each country divided its time equally between the production of cheese and bread. Now, each country spends all its time producing the good in which it has a comparative advantage. As a result, the total output of cheese increased by
A) 15.
B) 20.
C) 25.
D) 40.

Question

Table 3-5
Assume that England and Spain can switch between producing cheese and producing bread at a constant rate. 
-Refer to Table 3-5. Assume that England and Spain each has 40 labor hours available. Originally, each country divided its time equally between the production of cheese and bread. Now, each country spends all its time producing the good in which it has a comparative advantage. As a result, the total output of cheese increased by
A) 15. 
B) 20. 
C) 25. 
D) 40.

Quizplus · Accepted Answer

England has a comparative advantage in cheese production, and Spain has a comparative advantage in bread production. When each country specializes in producing the good in which it has a comparative advantage, the total output of cheese will increase by 20 units.

Table 3-5 Assume That England and Spain Can Switch Between Producing Cheese