Question

Specializing in the production of a good or service in which one has a comparative advantage enables a country to do all of the following except A. increase the quantity of products that it can consume with no increase in resources. B. engage in mutually beneficial trade with other nations. C. produce a combination of goods that lie outside its own production possibilities frontier. D. consume a combination of goods that lie outside its own production possibilities frontier.

Answer 1

Answer:

C. produce a combination of goods that lie outside its own production possibilities frontier

Explanation:

A country has comparative advantage in production if it produces at a lower opportunity cost when compared with other countries.

Producing outside a production possibility frontier is impossible. Efficient production takes place on the production possibility frontier.

By importing goods from trade partners , a country can increase the quantity of products that it can consume with no increase in resources.

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