A country can achieve some combination of goods outside its production possibilities curve by:
A)idling some of its resources.
B)specializing and engaging in international trade.
C)buying the debt (bonds and stocks) of foreign nations.
D)producing more consumption goods and fewer capital goods.

Question

Quizplus · Accepted Answer

Specializing and engaging in international trade allows a country to access goods and services that are beyond its production possibilities curve by trading with other countries who have a comparative advantage in producing those goods. This allows both countries to benefit from the trade and consume a combination of goods that is not possible through domestic production alone.

A Country Can Achieve Some Combination of Goods Outside Its