With no international trade, a country_{--------------------} consume at a point outside of its PPF; with international trade, a country _{--------------------}consume at a point outside of its PPF.

Question

Quizplus · Accepted Answer

Without international trade, a country is limited to consuming within its Production Possibility Frontier (PPF). With international trade, a country can consume beyond its PPF by specializing in the production of goods where it has a comparative advantage and trading for other goods.

With No International Trade, a Country-------------------- Consume at a Point

With No International Trade, a Country_{--------------------} Consume at a Point