Evaluate whether the following statements are true or false

Evaluate whether the following statements are true or false. Also, please provide your reasoning to support your answers.

The Production possibility frontier is always the same as the consumption possibility frontier. (Hint: (Compared the case of no trade versus free trade)

Solution

False.

Only under autarky, Consumption possibility frontier is identical to the production possibility frontier.

( Autarky is self sufficiency )