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

With international trade, a country can consume at a point outside of its PPF because it can import goods or services that are more efficiently produced by other countries, enabling it to reallocate resources towards producing goods or services in which it has a comparative advantage. Without international trade, a country can only consume at a point on or inside its PPF because it is limited to producing goods or services using its own resources, which may not allow for the production of all desired goods or services beyond a certain point.

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