Opening trade between two nations would
A) shift their production possibilities curves outward.
B) shift their production possibilities curves inward.
C) leave the production possibilities unchanged and increase their consumption possibilities.
D) leave the production possibilities unchanged and decreased their consumption possibilities.

Question

Quizplus · Accepted Answer

Opening trade allows countries to specialize in the production of goods where they have a comparative advantage, leading to more efficient allocation of resources and increased consumption possibilities without changing the production possibilities curve.

Opening Trade Between Two Nations Would