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If the Trade Line That Passes Through the Production Point

Question 48

Multiple Choice

If the trade line that passes through the production point on the PPC has a slope that is shallower 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 vertical axis.
B) the country can get greater gains from trade if it moves production toward the vertical axis.
C) the country cannot improve on its gains from trade.
D) There are no gains from trade in this example.
E) There is not enough information to tell how it can improve its gains from trade.

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