Suppose a country is currently producing at a point on its production possibility frontier, and undertakes no trade with other countries. Then trade is opened up. Which of the following would not occur as a direct result? a) Its production possibility frontier would shift. b) Its production would shift to another point on its production possibility frontier. c) The pattern of products that the country produced would differ from the pattern that its consumers consumed. d) Consumers would be able to consume at a point outside the production possibility frontier.

Suppose a country is currently producing at a point on its production possibility frontier, and undertakes no trade with other countries. Then trade is opened up. Which of the following would not occur as a direct result? a) Its production possibility frontier would shift. b) Its production would shift to another point on its production possibility frontier. c) The pattern of products that the country produced would differ from the pattern that its consumers consumed. d) Consumers would be able to consume at a point outside the production possibility frontier.

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter21: International Trade And Finance

Section: Chapter Questions

Problem 16SQ

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