(Figure: Home Production and Consumption) The figure gives Home's international trading pattern. Point P is production with trade, and point C is consumption with trade. Which product does Home import? A) clothing B) chemicals C) It imports neither chemicals nor clothing. D) It imports both chemicals and clothing.

Question

Quizplus · Accepted Answer

Home imports clothing, as it consumes more clothing than it produces (point C is to the right of point P on the clothing axis). It does not import chemicals, as it produces and consumes the same amount of chemicals.

(Figure: Home Production and Consumption) the Figure Gives Home's International