Reference: Ref 2-7 (Table: Production Possibilities for Italy and Belgium)

question 31

Multiple Choice

Reference: Ref 2-7 (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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