Which of the following is true of a country's production possibilities frontier?
A) International trade makes it possible for a country's consumption possibilities to exceed its production possibilities.
B) International trade requires that a country's production possibilities exceed its consumption possibilities.
C) A country's production possibilities always equal its consumption possibilities.
D) A country's consumption possibilities can never equal its production possibilities because of leakages in the system.
E) The slope of a country's production possibilities frontier is equal to the absolute advantage of producing a particular good.
Correct Answer:
Verified
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