One of the great benefits of trade is

a. That it makes it possible for society to become better off if individuals, firms, and countries specialize in producing goods and services for which they have an absolute advantage.

b. That it makes it possible for society to become better off by increasing its consumption.

c. That it provides society what it desires most in life even if it does not enhance the means for achieving its goals.

d. That it makes it possible for society to become better off by increasing its production but not its consumption.

Question

Catalina Oliver

Business

20 October, 20:59

One of the great benefits of trade is

a. That it makes it possible for society to become better off if individuals, firms, and countries specialize in producing goods and services for which they have an absolute advantage.

b. That it makes it possible for society to become better off by increasing its consumption.

c. That it provides society what it desires most in life even if it does not enhance the means for achieving its goals.

d. That it makes it possible for society to become better off by increasing its production but not its consumption.

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Answers (1)

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Isiah · Answer 1

I believe the answer is: B. That it makes it possible for society to become better off by increasing both its production and its consumption.

Without trades, in order to fulfill all needs of the people, a country need to separate their time and resources to produce each of the needed products. With trades, a country could increase the production of the products in which they have a natural advantage at, and trade the products with other countries in case we need different product that we do not produce here.