In the absence of international importing and exporting:
A)a country's consumption possibilities frontier is always below the production possibilities frontier
B)a country will be able to specialise more in producing goods it is most productive in
C)a country's production possibilities frontier is also its consumption possibilities frontier
D)a country will have access to greater product variety

Question

Quizplus · Accepted Answer

In the absence of international importing and exporting, a country cannot trade with other countries and hence it needs to produce all the goods it needs for consumption. Therefore, the country's production possibilities frontier is also its consumption possibilities frontier.

In the Absence of International Importing and Exporting