Table 3-24 Assume That England and Spain Can Switch Between Producing Cheese

Multiple Choice

Table 3-24
Assume that England and Spain can switch between producing cheese and producing bread at a constant rate.
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-Refer to Table 3-24. Without trade, England produced and consumed 32 units of cheese and 2 units of bread and Spain produced and consumed 6 units of cheese and 2 units of bread. Then, each country agreed to specialize in the production of the good in which it has a comparative advantage and trade 7 units of cheese for 2.5 units of bread. As a result, England gained

A) 0 units of cheese and 0.5 unit of bread and Spain gained 1 unit of cheese and 0.5 unit of bread.
B) 1 unit of cheese and 0.5 unit of bread and Spain gained 1 unit of cheese and 0.5 unit of bread.
C) 7 units of cheese and 2.5 units of bread and Spain gained 7 units of cheese and 2.5 units of bread.
D) 33 units of cheese and 2.5 units of bread and Spain gained 7 units of cheese and 2.5 units of bread.