Q.

Suppose the world consists of two countries: the UK and Spain. Further, suppose there are only two goods--food and clothing. Which of the following statements is true?

A. If the UK has an absolute advantage in the production of food, then Spain must have an absolute advantage in the production of clothing.
B. If the UK has a comparative advantage in the production of food, Spain might also have a comparative advantage in the production of food.
C. If the UK has a comparative advantage in the production of food, it must also have a comparative advantage in the production of clothing
D. If the UK has a comparative advantage in the production of food, then Spain must have a comparative advantage in the production of clothing
Answer» D. If the UK has a comparative advantage in the production of food, then Spain must have a comparative advantage in the production of clothing
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