It is likely that a protrade production growth effect will lead to an expansion of trade since the presence of inferior goods is relatively rare. Explain.

Question

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The Answer is A protrade production growth effect refers to an increase in the production of goods and services for export, which can lead to an expansion of trade. This is because when a country experiences growth in its production capacity, it is able to produce more goods and services that can be traded internationally. As a result, the country is likely to engage in more trade with other nations.

The presence of inferior goods, which are goods for which demand decreases as consumer incomes rise, is relatively rare in the context of protrade production growth. This is because as a country's production capacity grows, it is able to produce higher quality goods and services that are in demand internationally. As a result, the expansion of trade is more likely to be driven by the production of higher quality goods and services, rather than inferior goods.

Overall, the protrade production growth effect is likely to lead to an expansion of trade because it enables a country to produce more goods and services for export, and the presence of inferior goods is relatively rare in this context.

It Is Likely That a Protrade Production Growth Effect Will