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:

Treatments

Interventions or conditions that researchers apply to experimental units or subjects to observe their effect on outcomes.

Level of Significance

A threshold of probability set before testing hypotheses, below which the null hypothesis is rejected.

Treatments

Specific conditions applied to the participants or subjects in an experimental study.

Total

The sum of all values in a set of numbers.