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Ivan
3 years ago
14

If you have a nation that has a production possibilities curve whereas its economy must give up 500 toys to get 1 additional lap

top. Suppose it can get the laptop from another country it trades with in exchange for 4,00 toys. Considering what we learn this class that through international specialization and trade, a nation can consume at a point outside its production possibilities curve, and that reduces its opportunity cost of obtaining goods
Business
1 answer:
taurus [48]3 years ago
3 0

Answer:

International trade and specialization allows us to gain from trade. If a nation uses international specialization and trade to obtain the Laptop it needs to give up 400 units of toys as compared to 500 units if it was to produce it  by itself. This reduces the opportunity cost of producing laptops by 100 toys and “thus move outside its production possibilities curve.”

So, the above statement is true.

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