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

question 241

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 has comparative advantage in:

• A) both goods, while Belgium has comparative advantage in neither good.
• B) linen, while Belgium has comparative advantage in pasta.
• C) pasta, while Belgium has comparative advantage in linen.
• D) neither good, while Belgium has comparative advantage in both goods.

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