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.

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