When a country removes trade barriers and exports pork chops and imports stereos, which of the following will most likely happen?
A)Its growth will slow down.
B)Its productivity will decrease.
C)It will essentially be transforming pork chops into stereos.
D)Its economic well-being will decrease, while that of the country that sells stereos will increase.

Question

Quizplus · Accepted Answer

When a country removes trade barriers, it allows for specialization and comparative advantage, which means that the country focuses on producing goods that it can produce most efficiently and at a lower cost. In this case, the country is essentially transforming its pork chops into stereos by producing more stereos and importing pork chops, which it may not be able to produce efficiently. This leads to an increase in economic efficiency and potentially, an overall increase in economic well-being.

When a Country Removes Trade Barriers and Exports Pork Chops