Question

Opening trade between two nations would

a. shift their production possibilities curves outward.
b. shift their production possibilities curves inward.
c. leave the production possibilities unchanged and increase their consumption possibilities.
d. leave the production possibilities unchanged and decreased their consumption possibilities.

Answer 1

c. leave the production possibilities unchanged and increase their consumption possibilities.

Step-by-step explanation:

Economies benefit from trade as each will produce goods with comparative advantage and trade in the foreing market Making increase their consumption possibilities as will sale good at better prices and purchase other imported goods with a lower opportunity cost. Overall economies will benefit from trade most of the times.