3. What results when two individuals produce efficiently and then make a mutually beneficial trade based on

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3. What results when two individuals produce efficiently and then make a mutually beneficial trade based on comparative advantage?

a. they both obtain consumption outside their production possibilities frontier

b. they both obtain consumption inside their production possibilities frontier

c. one individual consumes inside her production possibilities frontier, while the other consumes outside hers

d. each individual consumes a point on her own production possibilities frontier

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Principles Of Macroeconomics

ISBN: 9780176591977

7th Canadian Edition

Authors: N. Mankiw, Ronald Kneebone, Kenneth McKenzie

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