With trade,the slope of the Consumption Possibilities Curve (CPC)is equal to
A)the world price of the good on the horizontal axis.
B)the world price of the good on the vertical axis.
C)the opportunity cost of the good on the horizontal axis.
D)the opportunity cost of the good on the vertical axis.

Question

Quizplus · Accepted Answer

The slope of the Consumption Possibilities Curve (CPC) in a trading environment is determined by the world price of the good on the horizontal axis, as this reflects the rate at which the country can trade this good for others on the international market.

With Trade,the Slope of the Consumption Possibilities Curve (CPC)is Equal