QUESTION 2

1. Based on the graph titled Free Trade, Efficiency, and Welfare,see my presentation, andassumingthat the terms of international trade are one car per one textile, if Mexico specializes in cars, the Consumption Possibilities Curve will:
2. a.Start at the specialization point of cars.
3. b.Mexico can obtain more textiles by reducing production of cars instead of attempting to export cars.
4. c.The CPC will travel through the inner area of the PPC
5. d.All of the above