Question $17($Mandatory$)(4$ points$)$

Table: Production Possibilities for Italy and Belgium

$\backslash$table$[[,\backslash$table$[[$Labor Hours Needed to Make$],[1$ Pound of:$]],\backslash$table$[[$Pounds Produced in $40],[$Hours$]]],[$Linen$,$Pasta,Linen,Pasta$],[$Italy$,10,4,4,10],[$Belgiam$,2,8,20,5]]$

According to the table on production possibilities for Italy and Belgium, Italy and Belgium both could benefit if Italy were to specialize in:

a$)$ linen and Belgium were to specialize in pasta.

b$)$ pasta and Belgium were to specialize in linen.

C$)$ neither good and Belgium were to specialize in both goods.

d$)$ both goods and Belgium were to specialize in neither good.