Consumption possibilities, during a given time period, refer to the
A) Maximum amount of imported goods and services that a country can consume.
B) Amount by which a country can expand its production possibilities by engaging in international trade.
C) Alternative combinations of goods and services that a country can consume.
D) Maximum amount that a country can produce if it imports and does not export.

Question

Quizplus · Accepted Answer

Consumption possibilities refer to the alternative combinations of goods and services that a country can consume during a given time period. It is the range of choices available to a country for the use of its resources, including both domestic production and imports. The consumption possibilities curve shows the various combinations of goods and services that a country can consume given its resource endowment and technology, assuming full employment of resources and efficient production.

Consumption Possibilities, During a Given Time Period, Refer to the