With no international trade,a country ________ consume at a point outside of its PPF; with international trade,a country ________ consume at a point outside of its PPF.

Question

Quizplus · Accepted Answer

Without international trade, a country is limited to consuming at a point on its production possibility frontier (PPF). However, with international trade, a country can consume at a point outside of its PPF by importing goods it cannot produce efficiently and exporting goods it can produce efficiently. Therefore, the correct answer is A) cannot; can.

With No International Trade,a Country ________ Consume at a Point