Without engaging in international trade, Candonia and Sylvania would have been able to consume at the after-trade consumption bundles. (Hint: Base this question on the answers you previously entered on this page.)

True or False

The given statement " Without engaging in international trade, Candonia and Sylvania would have been able to consume at the after-trade consumption bundles " is FALSE

Explanation:

Any amount outside the initial PPF of a country is considered unlikely without participating in international trade. This means that the PPF bundles are the largest quantity of the items that a nation can produce (and thus consume) without exchange provided the capital of an individual country.

Candonia and Sylvania will actually consume specialization outside their own PPFs, by using the comparative advantage of each nation to realize income from the exchange.

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