Question

f there is international trade, then a nation's consumption possibilities are __________ its production possibilities.

Select one:

a. less than

b. the same as

c. greater than

d. steeper than

Answer 1

Production possibility curve can be defined as the line by joining the points of different combination of two goods which can be produced by using all available resources efficiently.

A international trade allows a country to have more choices for the consumption compared to without trade. Hence with international trade, a nation's consumption possibilities are greater than its production possibilities.

Hence option c is the correct answer.

Option c ; greater than.