Trade allows nations to attain and indifference curve that is
A) beyond the indifference curve it could attain without trade
B) inside the indifference curve it could attain without trade
C) is positively sloped
D) is negatively sloped

Question

Quizplus · Accepted Answer

Trade allows nations to access goods and services that they may not be able to produce efficiently domestically, and may also lead to lower prices for consumers. As a result, nations can attain a higher level of consumer satisfaction or utility, which is reflected by an indifference curve that is beyond the one it could attain without trade. Therefore, choice A is the correct answer.

Trade Allows Nations to Attain and Indifference Curve That Is