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 will be consuming inside their production possibility frontiers.
D)they will be consuming outside their production possibility frontiers.

Question

Quizplus · Accepted Answer

When countries engage in international trade, they can consume outside their production possibility frontiers by trading with other countries who specialize in producing goods that they are less efficient at producing themselves. This allows for higher levels of consumption and a more efficient allocation of resources.

If Countries Engage in International Trade