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  • ICAR and TNAU E-Course Summarized

    Summarized Notes
  • If a nation gains from trade, its consumption point is

    Question: If a nation gains from trade, its consumption point is

    Options:

    On its PPF
    Inside its PPF
    Outside its PPF
    Any of them

    ✅ Explanation: A Production Possibilities Frontier (PPF) represents the maximum combination of goods and services an economy can produce with its given resources and technology. When a nation engages in trade and specializes in producing goods or services in which it has a comparative advantage, it can import goods that it would be less efficient at producing domestically. This allows the nation to consume a combination of goods that lies beyond its PPF, indicating a higher level of consumption than it could achieve through domestic production
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