If the Trade Line That Passes Through the Production Point

question 48

Multiple Choice

If the trade line that passes through the production point on the PPC has a slope that is shallower than the slope of the PPC at the same point,then

• A)the country can get greater gains from trade if it moves production away from the vertical axis.
• B)the country can get greater gains from trade if it moves production toward the vertical axis.
• C)the country cannot improve on its gains from trade.
• D)There are no gains from trade in this example.
• E)There is not enough information to tell how it can improve its gains from trade.

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