By specialization and trade, two individuals can
A) consume at a point beyond their individual production possibilities frontiers.
B) increase their comparative advantage.
C) increase their absolute advantage.
D) shift their individual production possibilities frontiers outward.

Question

Quizplus · Accepted Answer

Specialization and trade allow individuals to consume at a point beyond their individual production possibilities frontiers because they can focus on producing goods for which they have a comparative advantage and trade for other goods, effectively consuming more than they could produce on their own.

By Specialization and Trade, Two Individuals Can