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    Modern Principles of Economics Study Set 2
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    Exam 2: The Power of Trade and Comparative Advantage
  5. Question
    Reference: Ref 2-7 (Table: Production Possibilities for Italy and Belgium)
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Reference: Ref 2-7 (Table: Production Possibilities for Italy and Belgium)

Question 71

Question 71

Multiple Choice

  Reference: Ref 2-7 (Table: Production Possibilities for Italy and Belgium)  According to the table on Production Possibilities for Italy and Belgium, the opportunity cost of 1 pound of pasta for Italy is: A)  2/5 pound of linen. B)  4 pounds of linen. C)  1/4 pound of linen. D)  2 hours of labor. Reference: Ref 2-7 (Table: Production Possibilities for Italy and Belgium) According to the table on Production Possibilities for Italy and Belgium, the opportunity cost of 1 pound of pasta for Italy is:


A) 2/5 pound of linen.
B) 4 pounds of linen.
C) 1/4 pound of linen.
D) 2 hours of labor.

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