If the opportunity cost is constant (the PPF is a straight line), then a country will:
A) partially specialize in the production of its exported product.
B) completely specialize in the production of its exported product.
C) not benefit from importing goods from another country.
D) benefit by raising trade barriers.

Question

Quizplus · Accepted Answer

If the opportunity cost is constant, the PPF is a straight line, which means the country has a comparative advantage in producing one good over the other at all levels of production. This allows the country to completely specialize in the production of its exported product and gain maximum efficiency and output.

If the Opportunity Cost Is Constant (The PPF Is a Straight