If a nation gains from trade, its consumption point is:

Correct option is C

· The Production Possibility Frontier (PPF) represents the maximum output combinations of two goods that a country can produce with its available resources.
· If a nation engages in trade, it can:
· Specialize in producing what it does best
· Import goods that others produce more efficiently
· This allows it to consume beyond (above) its PPF, achieving higher utility than in autarky.
· Hence, gains from trade shift the consumption possibilities outward, beyond the domestic production limits.