When two individuals produce eff iciently and thenmake a mutually beneficial trade based on com para~tive advantage,a. they both obtain consumption outside their productionpossi bil ities frontier.b. they both obtain consumption inside their p rod u c ~tion possi bil ities frontier.c. one individual consumes inside her productionpossibilit ies frontier, while the other consumesoutside hers.d. each ind ividual consumes a poi nt on her ownproduction possibi lities frontier.
When two individuals produce eff iciently and thenmake a mutually beneficial trade based on com para~tive advantage,a. they both obtain consumption outside their productionpossi bil ities frontier.b. they both obtain consumption inside their p rod u c ~tion possi bil ities frontier.c. one individual consumes inside her productionpossibilit ies frontier, while the other consumesoutside hers.d. each ind ividual consumes a poi nt on her ownproduction possibi lities frontier.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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| When two individuals produce eff iciently and then make a mutually beneficial trade based on com para~ tive advantage, a. they both obtain consumption outside their production possi bil ities frontier. b. they both obtain consumption inside their p rod u c ~ tion possi bil ities frontier. c. one individual consumes inside her production possibilit ies frontier, while the other consumes outside hers. d. each ind ividual consumes a poi nt on her own production possibi lities frontier. |
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