A country can achieve some combination of goods outside its production possibilities curve by
A) idling some of its resources.
B) specializing and engaging in international trade.
C) buying the debt (bonds and stocks) of foreign nations.
D) producing more capital goods and fewer consumer goods.

Question

Quizplus · Accepted Answer

Specializing and engaging in international trade allows a country to exchange some of its produced goods for goods that are not produced domestically, thus achieving a combination of goods outside its production possibilities curve. This is known as the theory of comparative advantage. The other options either do not result in achieving a combination of goods outside the production possibilities curve or are not feasible ways to do so.

A Country Can Achieve Some Combination of Goods Outside Its