Suppose that a country's post-trade consumption point lies inside of its production possibilities curve.This means that the country
A) gains from trade
B) loses from trade
C) is not affected by trade
D) none of the above

Question

Quizplus · Accepted Answer

If a country's post-trade consumption point is inside its production possibilities curve, it indicates that the country is not utilizing its resources efficiently and is worse off with trade, thus losing from trade.

Suppose That a Country's Post-Trade Consumption Point Lies Inside of Its