If a Country Is Currently Producing at a Production Point

question 39

Multiple Choice

If a country is currently producing at a production point such that the trade line has a slope that is flatter 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 good on the vertical axis.
• B)the country can get greater gains from trade if it moves production toward the good on the vertical axis.
• C)the country cannot improve on its gains from trade.
• D)There are no gains from trade in this example.