By specializing and trading,a country is able to
A) obtain the absolute advantage in the goods it produces.
B) consume but not to produce combinations of goods that lie beyond its production possibilities frontier.
C) produce but not to consume combinations of goods that lie beyond its production possibilities frontier.
D) both produce and consume combinations of goods that lie beyond its production possibilities frontier.
E) neither produce nor consume combinations of goods that lie beyond its production possibilities frontier.

Question

Quizplus · Accepted Answer

By specializing in the production of goods for which it has a comparative advantage and trading for other goods, a country can consume at a point beyond its production possibilities frontier. This means it can enjoy a combination of goods that it would not be able to produce on its own, thus improving its overall consumption possibilities.

By Specializing and Trading,a Country Is Able to