In aukarky, when a community maximizes its standard of living, its production and consumption point is ?
Correct answer: B. On the production possibility frontier
- A. below the production possibility frontier
- B. On the production possibility frontier
- C. above the production possibility frontier
- D. can't tell without more information
Explanation
Under autarky, the community consumes what it produces because it does not trade with other countries. Maximizing living standards therefore places the production and consumption point on the attainable production possibility frontier.
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