Through specialization and international trade a nation:
A)can achieve some combination of goods lying outside its production possibilities curve.
B)can move from a high consumption-low investment to a high investment-low consumption point on its production possibilities curve.
C)will achieve some combination of goods lying within its production possibilities curve.
D)will cause its production possibilities curve to shift leftward.

Question

Quizplus · Accepted Answer

By specializing in the production of goods that they have a comparative advantage in and trading with other nations, a country can produce a combination of goods that lie outside their own production possibility curve, allowing them to consume more than they would be able to if they only produced goods on their own.

Through Specialization and International Trade a Nation