A) increase wages in developed countries, but decrease wages in lesser-developed countries. B) decrease wages in developed countries, but increase wages in lesser-developed countries. C) decrease wages in all countries. D) increase wages in all countries. A) increase wages in developed countries, but decrease wages in lesser-developed countries. B) decrease wages in developed countries, but increase wages in lesser-developed countries. C) decrease wages in all countries. D) increase wages in all countries.

Use the following to answer questions: Table: Production Possibilities for Kenya and Sri Lanka \[\begin{array} { l c c } \hline & \text { Beans (millions of tons) } & \text { Tea (millions of tons) } \\ \hline \text { Kenya } & 100 & 200 \\ \text { Sri Lanka } & 150 & 450 \\ \hline \end{array}\] -(Table: Production Possibilities for Kenya and Sri Lanka) According to the table on production possibilities for Kenya and Sri Lanka, Kenya's opportunity cost of producing beans is ________, while Sri Lanka's opportunity cost of producing beans is _________.

A) 0.5 teas; 0.33 teas B) two teas; 0.33 teas C) 200 teas; 450 teas D) two teas; three teas A) 0.5 teas; 0.33 teas B) two teas; 0.33 teas C) 200 teas; 450 teas D) two teas; three teas

Use the following to answer question 82: Table: Production in France and Italy \[\begin{array}{l} \text { Labor units required to produce: }\\ \begin{array} { l c c } & \text { One Bag of Truffles } & \text { One Pair of Wool Socks } \\ \hline \text { France } & 1 & 1 \\ \text { Italy } & 2 & 4 \\ \hline \end{array} \end{array}\] -In Colombia, it takes three workers to produce two pounds of coffee. In Mexico, it takes four workers to produce one pound of coffee. Therefore:

A) Colombia has a comparative advantage in the production of coffee. B) Mexico has a comparative advantage in the production of coffee. C) in Colombia, the opportunity cost of producing one pound of coffee is two-thirds. D) Colombia has an absolute advantage in the production of coffee. A) Colombia has a comparative advantage in the production of coffee. B) Mexico has a comparative advantage in the production of coffee. C) in Colombia, the opportunity cost of producing one pound of coffee is two-thirds. D) Colombia has an absolute advantage in the production of coffee.

Use the following to answer questions: Table: Production Possibilities for Italy and Belgium \[\begin{array}{l} \text { Labor Hours Needed to Make One }\\ \begin{array} { l c c c c } & { \text { Pound of: } } & &{ \text { Pounds produced in } 40 \text { hours: } } \\ \hline & \text { Linen } & \text { Pasta } & \text { Linen } & \text { Pasta } \\ \hline \text { Italy } & 10 & 4 & 4 & 10 \\ \text { Belgium } & 2 & 8 & 20 & 5 \\ \hline \end{array} \end{array}\] -(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. 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.