Exhibit 21-1 Production possibilities curves
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In Exhibit 21-1, the production possibilities curves of wheat and corn for Nabia and Pada are presented. If both countries specialize in one good and trade for the other, :
A. Nabia and Pada will be able to consume at a point to the right of their respective production possibilities curves.
B. Nabia will be able to consume, at the most, the combination represented by point A.
C. Pada will be able to consume, at the most, the combination represented by point B.
D. the citizens of Nabia will consume only corn and the citizens of Pada will consume only wheat.
Answer: A
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