Engaging in trade allows a country to shift its consumption possibilities curve outward but leaves its production possibilities curve unchangeD.

Question

Quizplus · Accepted Answer

Engaging in trade allows a country to consume more goods and services than it would be able to produce on its own, which means its consumption possibility curve shifts outward. However, it does not change the country's ability to produce goods and services, so its production possibility curve remains unchanged.

Engaging in Trade Allows a Country to Shift Its Consumption