When a nation achieves autarky equilibrium,
A) input price equals final product price.
B) labor productivity equals the wage rate.
C) imports equal exports.
D) production equals consumption.

Question

Quizplus · Accepted Answer

In autarky equilibrium, a nation is producing and consuming on its production possibilities frontier. This means that it is producing the maximum amount of goods and services it can with the resources it has available, and is also consuming this same amount. Therefore, production equals consumption.

When a Nation Achieves Autarky Equilibrium