Suppose there are only two people in the world.Each person's production possibilities frontier also represents his or her consumption possibilities when
A)neither person faces trade-offs.
B)the frontiers are straight lines.
C)the frontiers are bowed out.
D)they choose not to trade with one another.

Question

Quizplus · Accepted Answer

When they choose not to trade with one another, each person's production possibilities frontier represents their consumption possibilities, as they can only consume what they produce themselves.

Suppose There Are Only Two People in the World