A country's consumption possibilities frontier can be moved outside its production possibilities frontier:
A)by producing a greater variety of goods and services
B)by allocating resources differently
C)through trade
D)by lowering unemployment in the country

Question

Quizplus · Accepted Answer

Through trade, a country can obtain goods and services that it cannot produce efficiently or at all. By specializing in the production of goods in which it has a comparative advantage and trading for those goods in which another country has a comparative advantage, both countries can consume more than they would be able to produce on their own, moving their consumption possibilities frontier beyond their production possibilities frontier.

A Country's Consumption Possibilities Frontier Can Be Moved Outside Its