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

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 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.