Use the following to answer questions: Table: Production Possibilities for Italy and Belgium Labor Hours Needed to Make One
$\begin{array}{lcccc}
&{\text { Pound of: }} && \text { Pounds produced in } \mathbf{4 0} \text { hours: } \
\hline & \text { Linen } & \text { Pasta } & \text { Linen } & \text { Pasta } \
\hline \text { Italy } & 10 & 4 & 4 & 10 \
\text { Belgium } & 2 & 8 & 20 & 5 \
\hline
\end{array}$
-(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 Belgium is:
A) 5 pounds of linen.
B) 20 pounds of linen.
C) 1/4 pound of linen.
D) 4 pounds of linen.

Question

Use the following to answer questions: Table: Production Possibilities for Italy and Belgium Labor Hours Needed to Make One
$\begin{array}{lcccc} 
&{\text { Pound of: }} && \text { Pounds produced in } \mathbf{4 0} \text { hours: } \
\hline & \text { Linen } & \text { Pasta } & \text { Linen } & \text { Pasta } \
\hline \text { Italy } & 10 & 4 & 4 & 10 \
\text { Belgium } & 2 & 8 & 20 & 5 \
\hline
\end{array}$
-(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 Belgium is:
A) 5 pounds of linen.
B) 20 pounds of linen.
C) 1/4 pound of linen.
D) 4 pounds of linen.

Quizplus · Accepted Answer

The opportunity cost of 1 pound of pasta for Belgium is 4 pounds of linen because Belgium can produce 20 pounds of linen in the time it takes to produce 5 pounds of pasta, so the opportunity cost is 20/5 = 4 pounds of linen per pound of pasta.

Use the Following to Answer Questions: Table: Production Possibilities for Italy