In autarky, a country will maximize its standard of living when:
A) its production point is on the production possibilities frontier.
B) its productions point is inside the production possibilities frontier.
C) its production point is outside the production possibilities frontier.
D) when the production point is fixed.
E) None of the above

Question

Quizplus · Accepted Answer

A country maximizes its standard of living in autarky when its production point is on the production possibilities frontier (PPF), as this represents the most efficient use of its resources, producing the maximum possible output.

In Autarky, a Country Will Maximize Its Standard of Living