Without trade it is impossible for a country to consume a mix of goods and services beyond its production possibilities curve.

Question

Quizplus · Accepted Answer

The production possibilities curve shows the maximum combination of goods and services that can be produced by a country with its available resources and technology. Without trade, a country can only consume within its production possibilities curve, as it cannot access goods and services produced by other countries. Therefore, it is true that without trade, a country cannot consume beyond its production possibilities curve.

Without Trade It Is Impossible for a Country to Consume