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, 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.