In the absence of trade, a nation is in equilibrium where an indifference
Curve:
A)lies above its production possibilities frontier.
B)is tangent to its production possibilities frontier.
C)intersects its production possibilities frontier.
D)lies below its production possibilities frontier.

Question

Quizplus · Accepted Answer

In the absence of trade, a nation is in equilibrium where an indifference curve is tangent to its production possibilities frontier. This is because at this point, the nation is producing the optimal combination of goods and services, given its resources and technology.

In the Absence of Trade, a Nation Is in Equilibrium