Economies can grow due to:
A) the extent to which all individuals are educated in all areas of production.
B) government policies.
C) the extent to which markets facilitate specialization through trade.
D) barriers to trade that promote the growth of domestic markets.

Question

Quizplus · Accepted Answer

Markets that facilitate specialization through trade allow countries to produce goods and services more efficiently, leading to economic growth. Specialization allows countries to focus on their comparative advantage, leading to increased productivity and output. As a result, the economy grows as more goods and services are produced, leading to an increase in income and living standards. In contrast, barriers to trade can limit the ability of countries to specialize and can lead to inefficiencies, reducing the potential for economic growth.

Economies Can Grow Due To