If a country has lower overall productivity levels than its trading partners,then it will
A)be unable to export.
B)have a trade deficit.
C)not be able to obtain gains from trade.
D)have a lower standard of living than its trading partners.

Question

Quizplus · Accepted Answer

A country with lower productivity may have a lower standard of living, as productivity is a key determinant of income and living standards. However, it can still export, have a trade surplus or deficit depending on other factors, and obtain gains from trade by specializing in goods where it has a comparative advantage.

If a Country Has Lower Overall Productivity Levels Than Its