Use the accompanying table to answer the following questions.
Table 3-4

-According to Table 3-4, if England and Spain trade according to the principle of comparative advantage, they will import _____ respectively.
A) bread and cheese
B) bread and bread
C) cheese and cheese
D) cheese and bread

Question

Use the accompanying table to answer the following questions.
Table 3-4
 
-According to Table 3-4, if England and Spain trade according to the principle of comparative advantage, they will import _____ respectively.
A) bread and cheese 
B) bread and bread 
C) cheese and cheese 
D) cheese and bread

Quizplus · Accepted Answer

According to Table 3-4, England has a comparative advantage in producing cheese (lower opportunity cost) and Spain has a comparative advantage in producing bread (lower opportunity cost). Therefore, England will import bread and Spain will import cheese if they trade according to comparative advantage. Therefore, the correct answer is D) cheese and bread.

Use the Accompanying Table to Answer the Following Questions