Specialisation and trade make a country better off because,with trade,the country can consume at a point

Question

Quizplus · Accepted Answer

Specialization allows a country to produce goods and services more efficiently, leading to an increase in its production possibilities frontier. By trading with other countries, the country can consume at a point outside its own production possibilities frontier. This is because trade allows it to obtain goods and services that it cannot produce efficiently on its own. Therefore, choice B is the best answer.

Specialisation and Trade Make a Country Better Off Because,with Trade,the