Gains from specialization and trade result in a country consuming:
A) inside its production possibilities frontier.
B) on its production possibilities frontier.
C) outside its production possibilities frontier.
D) less than it should.
E) None of the above

Question

Quizplus · Accepted Answer

Specialization and trade allow a country to consume beyond its production possibilities frontier because it can trade for goods and services it does not produce, or produces less efficiently, thus enjoying a higher level of consumption than it could achieve through domestic production alone.

Gains from Specialization and Trade Result in a Country Consuming