(Figure: PPF Goods X & Y) Refer to the figure. Which of thepoints representing various consumption possibilities for thecountry portrayed above is only attainable through foreigntrade?

Question

Quizplus · Accepted Answer

Point C is located outside the PPF curve, and thus is not attainable through domestic production alone. This implies that the country will need to engage in international trade to attain this consumption possibility. Points A and B are both on the PPF curve, and can technically be attained through domestic production without the need for international trade.

(Figure: PPF Goods X & Y) Refer to the Figure