Which of the folllowing statements is true A A nation will g

Which of the folllowing statements is true?

A. A nation will generally be able to consume less when it trades because of lost jobs to outsourcing

B. The consumption possibilities curve generally crosses the production possibilities curve

C. A nation that decides to specialize and trade is no longer limited to the options shown by its production

D. The consumption possibilities curve generally lies below the production possibilities curve

Solution

A-This is a false statement because Trade always increase the employbility ,if employbility will increase ,Income will increase,If income will increase the consumption will increase.

B.This statement is also false beacuse production possibilities curve is a graph representation of productionof an economy given fixed resources. Because it is a representation of the maximum mix of output that an economy can achieve using its existing resource to full extent and in the most efficient way.

But consumption is not the maximum use of income so it does not cross the pp curve.

C) It is also a False statement

D) It is a true statement