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

question 141

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, Belgium should specialize in linen production because it:

• A) has an absolute advantage in producing linen and pasta.
• B) can do so at a greater opportunity cost.
• C) has a comparative advantage in producing linen.
• D) already can produce enough pasta to meet demand.

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Definitions:

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