Which of the following will enable a nation to obtain a combination of consumer goods and capital goods outside its production possibilities curve?
A) Full employment.
B) International specialization and trade.
C) Full production.
D) Productive efficiency.

Question

Quizplus · Accepted Answer

International specialization and trade allows a nation to obtain goods outside its production possibilities curve by exchanging goods it produces relatively efficiently for goods produced more efficiently by other nations. This leads to an increase in consumption and investment, expanding the nation's production possibilities curve over time. The other options (A, C, and D) do not enable a nation to obtain goods outside of its production possibilities curve.

Which of the Following Will Enable a Nation to Obtain