A nation that gains from trade will find its consumption point being located
A) inside its production possibilities frontier.
B) along its production possibilities frontier.
C) outside its production possibilities frontier.
D) below its production possibilities frontier.

Question

Quizplus · Accepted Answer

If a nation gains from trade, it means that it can consume more goods and services than it can produce domestically. This implies that its consumption point will be located outside its production possibilities frontier, enabling it to trade with other nations and access goods and services that it cannot produce efficiently on its own.

A Nation That Gains from Trade Will Find Its Consumption