When can a country's consumption possibilities frontier be outside its production possibilities frontier?
A)if additional resources become available
B)if there is an increase in the level of technology
C)if the country engages in trade
D)if resources are shiftable

Question

Quizplus · Accepted Answer

Trade allows a country to specialize in producing the goods and services for which it has a comparative advantage and import the goods and services that it cannot produce efficiently. This allows the country to consume beyond its production possibilities frontier.

When Can a Country's Consumption Possibilities Frontier Be Outside Its