Suppose the figure shown represents the production possibilities frontier for Country A. Which of the following combinations of goods could Country A consume in the absence of trade?

Question

Quizplus · Accepted Answer

In the absence of trade, Country A can only consume the combination of goods that falls directly on the production possibilities frontier curve. The point corresponding to (5 airplanes, 30 trucks) is the only one that falls on the curve. Choosing any other combination would require Country A to produce beyond its production capacity, which is not feasible.

Suppose the Figure Shown Represents the Production Possibilities Frontier for Country