-Refer to Exhibit 2-8.If Maria and Maya each specialize in the good in which she has a comparative advantage and then engage in trade,____________________ can consume a combination of goods that lies beyond her PPF.
A) Maria,but not Maya,
B) Maya,but not Maria,
C) both Maria and Maya
D) neither Maria nor Maya

Question

-Refer to Exhibit 2-8.If Maria and Maya each specialize in the good in which she has a comparative advantage and then engage in trade,____________________ can consume a combination of goods that lies beyond her PPF.
A) Maria,but not Maya, 
B) Maya,but not Maria, 
C) both Maria and Maya 
D) neither Maria nor Maya

Quizplus · Accepted Answer

When individuals specialize in producing goods in which they have a comparative advantage and then trade, both can consume beyond their individual production possibilities frontiers (PPFs), benefiting from the trade.