A country gains from international trade if its post-trade ________ point lies outside its production possibility frontier.
A)production
B)autarky
C)consumption
D)All of the above

Question

Quizplus · Accepted Answer

The production possibility frontier (PPF) shows the maximum combinations of two goods that a country can produce given its resources and technology. Autarky refers to a situation where a country does not participate in international trade and produces everything it consumes. 
Therefore, if a country's post-trade consumption point lies outside its PPF, it means that it can consume more than it could under autarky. This occurs when a country specializes in the production of the good it has a comparative advantage in and trades with other countries. As a result, the country can benefit from international trade and consume more goods than it could produce on its own.

A Country Gains from International Trade If Its Post-Trade ________