Table 3-5 Assume that England and Spain can switch between producing cheese and producing bread at a constant rate.   Labor Hours Needed to Make 1 Unit of Number of Units Produced in 24 Hours Cheese Bread Cheese Bread England 2 3 12 8 Spain 3 6 8 4   Refer to Table 3-5. Which of the following combinations of cheese and bread could Spain produce in 24 hours?   a. 7 units of cheese and 1.5 units of bread     b. 3 units of cheese and 3 units of bread     c. 4 units of cheese and 3 units of bread     d. 6 units of cheese and 1 units of bread

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Comparative Advantage and Absolute Advantage Analysis

The theory of absolute advantage was given by Adam Smith in the year 1776.