Increased opportunities for trade increase production by

Question

Quizplus · Accepted Answer

Increased opportunities for trade allow countries to specialize in producing goods in which they have a comparative advantage, leading to increased production efficiency. This ultimately results in increased production levels for the country. Protectionism (option A) actually limits opportunities for trade and can decrease production. While trade can shift the production possibilities curve (option C), it is a result of increased efficiency from specialization rather than trade alone.

Increased Opportunities for Trade Increase Production by