A society can consume a combination of goods outside its production possibilities if there is
A) lower unemployment and increased capacity utilization.
B) specialization in production and International trade.
C) a change in consumers' tastes or preference for one good over another.
D) a change in prices of the two products.

Question

Quizplus · Accepted Answer

Specialization in production allows a society to produce more efficiently, which can increase its production possibilities. International trade allows a society to consume goods that it cannot produce by trading with other countries that specialize in producing those goods. Therefore, a combination of goods can be consumed outside of a society's production possibilities if it engages in specialization and trade.

A Society Can Consume a Combination of Goods Outside Its