Asked by
Michelle Elisa
on Oct 26, 2024Verified
Because of trade,a country may:
A) consume outside its production possibility frontier.
B) consume inside its production possibility frontier.
C) find its production possibility frontier shifting outward.
D) avoid opportunity costs.
Production Possibility Frontier
A curve depicting all maximum output possibilities for two or more goods given a set of inputs (resources, labor, etc.).
Trade
Conducting transactions involving the exchange, sale, or purchase of goods and services by or among people and countries.
Consuming Outside
The act of purchasing and enjoying goods or services outside one’s home, such as dining at restaurants or outdoor markets.
- Understand how trade enables consumption beyond a country's production possibility frontier.
Verified Answer
KD
Learning Objectives
- Understand how trade enables consumption beyond a country's production possibility frontier.