How are a nation’s production possibilities affected by specialization and trade based on the law of comparative advantage? A)Only a nation with an absolute advantage has a shift in the PPC B)A nation’s trading possibilities shifts the PPC curve to the right, or outside the original production possibilities. C)A nation’s trading possibilities shifts the PPC curve to the left, or inside the original production possibilities. D)The production possibilities curve, before and after trade does not change
How are a nation’s production possibilities affected by specialization and trade based on the law of comparative advantage? A)Only a nation with an absolute advantage has a shift in the PPC B)A nation’s trading possibilities shifts the PPC curve to the right, or outside the original production possibilities. C)A nation’s trading possibilities shifts the PPC curve to the left, or inside the original production possibilities. D)The production possibilities curve, before and after trade does not change
Chapter1: Making Economics Decisions
Section: Chapter Questions
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In the picture below is the full question. The highlighted one is my guess which is wrong.
How are a nation’s production possibilities affected by specialization and trade based on the law of
A)Only a nation with an
B)A nation’s trading possibilities shifts the PPC curve to the right, or outside the original production possibilities.
C)A nation’s trading possibilities shifts the PPC curve to the left, or inside the original production possibilities.
D)The
Transcribed Image Text:How are a nation's production possibilities affected by specialization and trade based on the law of comparative advantage?
Only a nation with an absolute advantage has a shift in the PPC
A nation's trading possibilities shifts the PPC curve to the right, or outside the original production possibilities.
A nation's trading possibilities shifts the PPC curve to the left, or inside the original production possibilities.
The production possibilities curve, before and after trade does not change.
O O
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