Some potential benefits from international trade include A. A rightward shift of the production possibilities curve.B. Greater efficiency in the use of the world’s limited resources.C. A higher standard of living for every person.D. All the above.
D. All the above.
The correct answer is D. All the above.
Explanation:
A. International trade can shift a country’s production possibilities curve to the right as it enables access to a larger market and greater specialization. A country can produce more of what it is most efficient at and trade with others to obtain goods and services it is not efficient at producing.
B. International trade can result in greater efficiency in the use of the world’s limited resources. For example, some countries have abundant land resources, thus produce more agricultural products, while others may have advanced technological capabilities, which means that they can produce machinery and equipment more efficiently.
C. International trade can lead to higher standards of living as it increases the variety of goods and services accessible to consumers at lower prices. Access to cheaper goods from other countries increases consumer satisfaction, which is an essential component of living standards.
Therefore, international trade has numerous benefits, including increased output, higher efficiency, and higher living standards.
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