Consider the following scenario to answer the next four questions: Two friends, Rachel and Joey, enjoy baking bread and making apple pies. Rachel takes two hours to bake 1 loaf of bread and one hour to make 1 pie. Joey takes four hours to bake 1 loaf of bread and four hours to make 1 pie.
-Specialization and trade allow individuals to:
A) consume outside their own production possibilities frontier (PPF).
B) shift their PPF outward.
C) produce more goods with less technology.
D) eliminate scarcity.
E) produce fewer goods with less technology.

Question

Quizplus · Accepted Answer

Specialization and trade allow individuals to consume outside their own production possibilities frontier (PPF) by focusing on producing goods where they have a comparative advantage and trading for others.

Consider the Following Scenario to Answer the Next Four Questions