A society can consume a combination of goods outside its production possibilities if there is:
A) Lower unemployment
B) International specialization and trade
C) A change in consumers' tastes
D) A change in prices

Question

Quizplus · Accepted Answer

International specialization and trade allow a society to consume a combination of goods outside its production possibilities because it enables the society to trade goods it produces relatively efficiently for goods it produces less efficiently. This trade leads to a higher overall level of consumption and a wider variety of goods being available in the society without requiring an increase in its production capabilities.

A Society Can Consume a Combination of Goods Outside Its