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

question 341

Multiple Choice

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.If England and Spain each spends all its time producing the good in which it has a comparative advantage and the countries agree to trade 2 units of bread for 6 units of cheese,then England will consume

• A) 34 units of cheese and 2 units of bread and Spain will consume 6 units of cheese and 3 units of bread.
• B) 34 units of cheese and 2 units of bread and Spain will consume 16 units of cheese and 3 units of bread.
• C) 34 units of cheese and 12 units of bread and Spain will consume 6 units of cheese and 3 units of bread.
• D) 34 units of cheese and 12 units of bread and Spain will consume 16 units of cheese and 3 units of bread.

---

Definitions:

Tons Of Beans

A measure of quantity, typically used in the agricultural or commodity markets, referring to the mass of beans.

World Exports

The total value or volume of goods and services sent from one country to be sold or traded in other countries.

Trade Deficits

A situation in which a country's imports of goods and services exceed its exports, leading to a net outflow of domestic currency to foreign markets.

Industrially Advanced

Refers to countries or regions that have highly developed industries, technology, and infrastructure, contributing to a strong economy.