If countries engage in international trade:

A) they give up the ability to specialize in production.
B) worldwide levels of production are lower.
C) they can consume inside their production possibility frontiers.
D) they can consume outside their production possibility frontiers.

Question

Anwar Mohamed · Accepted Answer

Final Answer : D, Explanation :  When countries engage in international trade, they can specialize in producing goods and services in which they have a comparative advantage. This can lead to increased efficiency and productivity, allowing them to produce more goods and services than they would be able to do in isolation. As a result, they can consume outside their production possibility frontiers, meaning they can consume more than they would be able to produce domestically.

If countries engage in international trade:

A) they give up the ability to specialize in production.
B) worldwide levels of production are lower.
C) they can consume inside their production possibility frontiers.
D) they can consume outside their production possibility frontiers.

Definitions

Learning Objectives

Learning Objectives

Related questions

If countries engage in international trade:A) they give up the ability to specialize in production.B) worldwide levels of production are lower.C) they can consume inside their production possibility frontiers.D) they can consume outside their production possibility frontiers.

Definitions

Learning Objectives

Learning Objectives

Related questions

If countries engage in international trade:

A) they give up the ability to specialize in production.
B) worldwide levels of production are lower.
C) they can consume inside their production possibility frontiers.
D) they can consume outside their production possibility frontiers.