If the opportunity cost is constant (the PPF is a straight line), then a
Country will:
A)partially specialize in the production of its exported product.
B)completely specialize in the production of its exported product.
C)not benefit from importing goods from another country.
D)benefit by raising trade barriers.

Question

Quizplus · Accepted Answer

If the opportunity cost is constant, the PPF will be a straight line, meaning that the country can produce either product with the same amount of resources. In this case, the country will completely specialize in the production of its exported product because it can produce that product more efficiently than the other product. It will also benefit from importing goods from another country because it can trade its exported product for goods that it cannot efficiently produce itself. Trade barriers would not be beneficial in this situation because they would limit the country's ability to trade and benefit from specialization.

If the Opportunity Cost Is Constant (The PPF Is a Straight