If two nations specialize in their respective comparative advantage and then trade with each other, both nations can consume output-combinations that are beyond their production possibilities curves. true or false

The correct answer is true.

Explanation:

If two countries produce and trade in the products that they specialize in or the product they can produce at a lower opportunity cost, they will be able to jointly increase their consumption.  

Both the countries will be able to consume at points beyond their production possibilities curve.  

This happens because each nation will be able to consume the commodity it produces and the commodity it imports from the other nation. So it will be able to consume beyond its production possibility frontier.