169k views
1 vote
What type of graphic shows the amounts of two products a nation can obtain by specializing in one product and trading for the other?

A. A trade with increasing costs line
B. A trading possibilities line
C. A projected gains from trade curve
D. A domestic production possibilities curve

User Pfc
by
7.7k points

1 Answer

4 votes

Final answer:

A trading possibilities line is the graphic that shows the amounts of two products a nation can acquire by specializing in one product and trading for the other, which is illustrated using the production possibilities curve.

Step-by-step explanation:

The type of graphic that shows the amounts of two products a nation can obtain by specializing in one product and trading for the other is known as a trading possibilities line. This line represents how a country can benefit by producing the goods for which it has a comparative advantage and then trading for the other goods it requires. The production possibilities curve helps to visualize the trade-offs and potential gains from specialization and trade. By engaging in trade, a nation can consume beyond its own production possibilities curve, reflecting the economic principle of comparative advantage.

User Kvivek
by
8.1k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories