Table 3-6

-Refer to Table 3-6. If England and Spain specialize and trade according to their respective comparative advantage, which of the following is correct?
A)All individuals in both countries will benefit.
B)Spain will specialize in and export bread.
C)England will produce more bread than in the absence of trade.
D)England will produce more cheese than in the absence of trade.

Question

Table 3-6
 
-Refer to Table 3-6. If England and Spain specialize and trade according to their respective comparative advantage, which of the following is correct?
A)All individuals in both countries will benefit. 
B)Spain will specialize in and export bread. 
C)England will produce more bread than in the absence of trade. 
D)England will produce more cheese than in the absence of trade.

Quizplus · Accepted Answer

When countries specialize according to their comparative advantage, they produce more of the good for which they have a lower opportunity cost. If England has a comparative advantage in producing bread, it will produce more bread than it would without trade.

Table 3-6 -Refer to Table 3-6. If England and Spain Specialize and and Spain