-A nation can consume at a point outside its PPF
A) never.
B) when it trades with other nations.
C) when its PPF is bowed out.
D) when it produces inefficiently.

Question

-A nation can consume at a point outside its PPF
A) never. 
B) when it trades with other nations. 
C) when its PPF is bowed out. 
D) when it produces inefficiently.

Quizplus · Accepted Answer

When a nation trades with other nations, it can consume at a point outside its PPF. This is because trade allows a nation to specialize in producing goods and services that it can produce relatively efficiently, and then trade with other nations to obtain goods and services that it cannot produce as efficiently.

-A Nation Can Consume at a Point Outside Its PPF