Through specialization and international trade, a nation
A) can attain some combination of goods lying outside its production possibilities curve.
B) can move from a high consumption-low investment to a high investment-low consumption point on its production possibilities curve.
C) will only attain some combination of goods lying within its production possibilities curve.
D) will cause its production possibilities curve to shift leftward.

Question

Quizplus · Accepted Answer

Through specialization and international trade, a nation can specialize in the production of goods it can make most efficiently and trade for goods it cannot produce efficiently. This will allow the nation to attain some combination of goods lying outside its production possibilities curve.

Through Specialization and International Trade, a Nation