Figure: Home Production and Consumption (Figure: Home Production and Consumption) The figure gives Home's
International trading pattern.Point P is production with trade, and point
C is consumption with trade.Which product does Home import?
A)clothing
B)chemicals
C)It imports neither chemicals nor clothing.
D)It imports both chemicals and clothing.

Question

Figure: Home Production and Consumption  (Figure: Home Production and Consumption) The figure gives Home's
International trading pattern.Point P is production with trade, and point
C is consumption with trade.Which product does Home import?
A)clothing 
B)chemicals 
C)It imports neither chemicals nor clothing. 
D)It imports both chemicals and clothing.

Quizplus · Accepted Answer

Home imports clothing as point C lies to the right of its production possibility frontier for clothing, indicating that it consumes more clothing than it produces domestically.