Table 3-6 -Refer to Table 3-6. If England and Spain Trade Based

question 45

Multiple Choice

Table 3-6

-Refer to Table 3-6. If England and Spain trade based on the principle of comparative advantage, which product will Spain export to England?

• A)Bread
• B)both bread and cheese
• C)Cheese
• D)Spain cannot benefit from trade with England.

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Definitions:

Sixth Unit

Refers to the additional, often specifically the sixth item or unit in a sequence or series in various contexts, possibly emphasizing its incremental impact.

Average Fixed Cost

The total fixed costs of production divided by the quantity of output, showcasing how fixed costs per unit change with production levels.

Output

The total quantity of goods or services produced by a firm, industry, or economy in a specific period.

Variable Inputs

Inputs or resources whose usage changes according to the level of production.