contestada

How does specialization allow a country to achieve consumption beyond its production possibilities curve?
a. Specialization does not contribute to greater consumption.
b. Specialization allows a country to produce more of one good and trade the excess production for other goods.
c. When specializing, a country ceases to produce the costlier goods and instead obtains those goods by trading the less costly goods it produces.
d. Consumption is always on the production possibilities curve.

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Answer:

The answer is letter c.

Explanation:

A country can only consume beyond its Production Possibilities Curve (PPC) when it employs specialization, which involves trading.

When a country uses specialization, it allows the country to produce only those consumption goods that offer low opportunity cost for them. This means that the country produces more of the goods that are native to their country. The excess of such goods (surplus) will be traded to other countries and this allows the county to consume beyond its PPC. The country will then trade it for the goods that are also a surplus of other countries.

Thus, this explains the answer.

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