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