Assume a country is initially operating on its production possibilities curve.If it specializes in the production of a good and trades,the country will:

Question

Quizplus · Accepted Answer

Specializing in the production of a good and engaging in trade allows a country to consume at a point outside its production possibilities curve. This is because trade enables a country to obtain goods and services it cannot produce as efficiently itself, effectively increasing its consumption possibilities beyond its own production capabilities.

Assume a Country Is Initially Operating on Its Production Possibilities