Table 3-6

-Refer to Table 3-6. Which of the following is correct?
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 3-6. Which of the following is correct?
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

According to Table 3-6, England can produce more bread and cheese than Spain with the same amount of resources, indicating that England has an absolute advantage in both goods. However, Spain has a lower opportunity cost of producing cheese compared to bread, implying that Spain has a comparative advantage in cheese. Therefore, the correct option is D.

Table 3-6 -Refer to Table 3-6. Which of the Following Is Correct