Use the Following to Answer Questions: Table: Production Possibilities for Italy

question 96

Multiple Choice

Use the following to answer questions: Table: Production Possibilities for Italy and Belgium Labor Hours Needed to Make One
$\begin{array}{lcccc} &{\text { Pound of: }} && \text { Pounds produced in } \mathbf{4 0} \text { hours: } \\\hline & \text { Linen } & \text { Pasta } & \text { Linen } & \text { Pasta } \\\hline \text { Italy } & 10 & 4 & 4 & 10 \\\text { Belgium } & 2 & 8 & 20 & 5 \\\hline\end{array}$
-(Table: Production Possibilities for Italy and Belgium) According to the table on production possibilities for Italy and Belgium, Italy and Belgium both could benefit if Italy were to specialize in:

• A) neither good, and Belgium were to specialize in both goods.
• B) both goods, and Belgium were to specialize in neither good.
• C) pasta, and Belgium were to specialize in linen.
• D) linen, and Belgium were to specialize in pasta.

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Definitions:

Private Equity Fund

A fund that pools money from investors to acquire equity ownership in companies with the goal of earning a return on the investments.

Factors

Factors are elements or conditions that are influential in determining outcomes.

Target Markets

Specific groups of potential consumers at whom a company aims its products or services, identified by demographic, geographic, and psychographic characteristics, or by purchasing behavior.

Compensating Balances

Minimum balance requirements mandated by banks for borrowers, serving as a form of security for the loan.