Suppose that international trade results in an outward shift in a country's production possibilities frontier.This would be described as
A) dynamic gains from trade.
B) static gains from trade.
C) protectionist gains from trade.
D) allocative gains from trade.

Question

Quizplus · Accepted Answer

An outward shift in a country's production possibilities frontier due to international trade indicates dynamic gains from trade. This means that trade has allowed the country to produce more goods and services than before, increasing its economic growth and potential.

Suppose That International Trade Results in an Outward Shift in a Country's