Question

in autarky a) A nation is governed by an individual with absolute authority b) Equilibrium is attained with the maximum gains from specialization and trade c) Each country’s consumption possibilities are the same as its production possibilities d) Equilibrium is attained with the maximum amount of international trade

Answer 1

Option C i.e Each country's consumption possibilities are the same as its production possibilities is the correct answer.

The autrarky implies self-sufficiency, an economy which is self-sufficient and which can survive without any international aid and international trade. It consumes as much as it produces.