Asked by Kolby Finnie on Apr 24, 2024
Trade allows the people of a country to produce outside their production possibility curve.
Production Possibility Curve
A graph that shows the maximum number of possible units a company can produce of two products given a set of inputs, reflecting the trade-off and opportunity cost of producing one product over another.
Trade
The action of buying, selling, or exchanging goods and services between people, firms, or countries.
- Describe the manner in which specialization and trade allow nations to exceed their production capacity.
Learning Objectives
- Describe the manner in which specialization and trade allow nations to exceed their production capacity.