When can a country's consumption possibilities frontier be outside its production possibilities frontier?
A) if additional resources become available
B) if there is an increase in the level of technology
C) if the country engages in trade
D) if resources are adaptable.

Question

Quizplus · Accepted Answer

Trade allows a country to consume goods that it cannot produce efficiently or at all. This means that the consumption possibilities frontier can be higher than the production possibilities frontier because the country can import goods that it cannot produce domestically.

When Can a Country's Consumption Possibilities Frontier Be Outside Its