Question

Because of trade, a country may find its institutional production possibilities frontier shifting inward (to the left).
a. avoid paying opportunity costs.
b. consume outside its institutional production possibilities frontier.
c. consume inside its institutional production possibilities frontier.

Answer 1

Answer:

Because of trade, country may consume outside its institutional production possibilities frontier.

Explanation:

Production possibility frontier plays a crucial role in economics. It is the point at which a country’s economy is most efficiently producing its various goods and services and, therefore, allocating its resources in the best way possible.