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Table 3-4 -Refer to Table 3-4

Question 135

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Table 3-4
 Labour hours needed to make one unit of:  Amount Produced in 40 hours:  Cheese  Bread  Cheese  Bread  England 3213.320 Spain 15408\begin{array}{|l|c|c|c|c|}\hline&\text { Labour hours needed to make one unit of: }&&\text { Amount Produced in } 40 \text { hours: }\\\hline & \text { Cheese } & \text { Bread } & \text { Cheese } & \text { Bread } \\\hline \text { England } & 3 & 2 & 13.3 & 20 \\\hline \text { Spain } & 1 & 5 & 40 & 8 \\\hline\end{array}
-Refer to Table 3-4.If England reduced the labour hours needed for it to produce cheese by 2.5 hours, it would:


A) have a comparative advantage over Spain in the production of cheese
B) have an absolute advantage over Spain in the production of both goods
C) have a comparative advantage over Spain in the production of both goods
D) have an absolute advantage over Spain in the production of cheese but not in the production of bread

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