Suppose the figure shown represents the production possibilities frontier for Country A. Which of the following combinations of goods could Country A consume in the absence of trade?

Question

Quizplus · Accepted Answer

The point (5 airplanes, 30 trucks) lies on the production possibilities frontier, indicating that it is a possible combination of goods that Country A can produce in the absence of trade. Any point inside the production possibilities frontier represents a combination of goods that is inefficient, while any point outside the frontier is unattainable given Country A's current resources and technology. Therefore, choices A, B, and C are all inefficient or unattainable.

Suppose the Figure Shown Represents the Production Possibilities Frontier for Country