If two countries have production possibilities curves with different slopes, there is no possibility for gains from trade.

Question

Quizplus · Accepted Answer

If two countries have production possibilities curves with different slopes, it indicates that they have different opportunity costs for producing goods. This creates the potential opportunity for gains from trade, as they can specialize in producing the goods they have a lower opportunity cost for, and trade with each other. By doing so, they can both consume more than they would if they tried to produce all goods domestically.

If Two Countries Have Production Possibilities Curves with Different Slopes