Exhibit 2-8 Refer to Exhibit 2-8. If Maria and Maya each specialize in the good in which she has a comparative advantage and then engage in trade, ____________________ can consume a combination of goods that lies beyond her PPF.

Question

Exhibit 2-8  Refer to Exhibit 2-8.  If Maria and Maya each specialize in the good in which she has a comparative advantage and then engage in trade, ____________________ can consume a combination of goods that lies beyond her PPF.

Quizplus · Accepted Answer

Maria specializes in producing good Y and Maya specializes in producing good X. By specializing in producing the good in which they have a comparative advantage, Maria and Maya can increase their overall production efficiency, allowing them to consume a combination of goods that lies beyond their individual PPF. Thus, both Maria and Maya can consume a combination of goods that lies beyond her PPF.